Daily Tax Update - January 18, 2012: IRS Updates Accuracy-Related Penalty Guidance

SERVICE RELEASES UPDATED GUIDANCE ON DISCLOSURES ADEQUATE TO AVOID CERTAIN ACCURACY-RELATED PENALTIES: The Service today issued updated guidance, identifying when disclosure is adequate to reduce a substantial understatement of income tax under section 6662(d) and to avoid tax return preparer penalties under section 6694(a). This guidance, Revenue Procedure 2012-15, updates Rev. Proc. 2011-13 to correct a reference to Schedule M-3 (Form 1120) and to address the employee-remuneration limitations under the amended section 162(m). The updated revenue procedure applies for any income tax return filed on 2011 tax forms for tax years that begin in 2011, and any income tax form filed on 2011 tax forms in 2012 that are for short tax years beginning in 2012.

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