What are Level 1 (Reprimand)
Level 2 (Suspension)
Level 3 (Expulsion)
100
Form used to grant authority to recieve confidential information from the IRS on a tax payer's behalf
What is Form 8821 "Tax Information Authorization"
100
Tax preparer has a resonable basis for a position by citing specific provisions of the IRC, Regs and Court cases in which the matter is addressed
What is Reasonabel Basis
100
$50 per failure, up to $25,000 per calendar year
What is the penalty for fialing to provide a complete copy of the return; signing the return; providing PTIN; failure to retain a copy or list; and file correct information returns;
100
Aiding and abetting understatement of tax liability penalty
What is $1000 ($10,000 for corporate returns or documents)
200
Infraction with no adverse inpact ont he quality of e-filed returns
What is Level 1 (reprimand)
200
Form used to authorize an agent to perform cetain actions in place of the taxpayer
What is form 2848, Power of Attorney and Declaration of Representative.
200
An objective standard involving an analysis of the law and application of the law to relevant facts with a 50% likelyhood the position will be upheld
What is Substantial Authority
200
Peanlty for cashing a taxpayer check
What is $500 per check
200
Improper disclosure or use of information used in tax prep
What is $250 per disclosure or use not to exceed $10,000 in any calendar year.
300
Level of infraction that do have an adverse impact on the quality of e-field returns
What is Level 2 (restriction of an e-file provider's participation for one year)
300
Form is ued to obtain a copy of the tax return for a fee
What is Form 4506 Request for Copy of Tax Return
300
Penalty for understatement due to unreasonable positions
What is the greater of $1000 or 50% of the income drived by the tax return preparer.
300
Penalty for failing to exercis due diligence in regard to EITC.
What is $500 per failure
300
Penalty for Improper disclosure or use of tax return information
What is Criminal misdemeanor; $1000 or 1 yr in the clink or both together with costs of prosecution.
400
Level of infraction tht have significant adverse impact on the quality of e-filed returns.
What is level 3 (suspension for two years or expel permanently)
400
Form used to obtain a transcript (free) of the return
What is Form 4506-T Request for Transcript of Tax Return
400
Penalty for understating the tax liability due to willful or reckless conduct
What is the greater of $5000 or 50% of the income derived by the return preparer
400
Tax preparer can avoid a penalty by showing the failure was due to
What is reasonable cause
400
An unenrolled tax preparer via form 2848 is authoized to
What is represent the taxpayer before customer service reps; revenue agents; and examination officers
500
Pub that explains the e-flie sanctions process
What is Pub 3112
500
This allows the agent to discuss the tax return with the IRS.
What is Limited authorization as a third-party designee
500
Regulation section that list the authorities used to determine if Substantial Authority or Reasonable basis exist
What is regluation section 1.6662-4-(d)(3)(iii)
500
Completion of form 8867; computation of the credit; knowledge and record retention