High Incomes Pique IRS Interest

High Incomes pique IRS interest

Take note CPA's and Tax Preparers-

"Congress passed a law in May that increased the disclosure requirements for them.
The law requires tax preparers to report any tax positions taken by their clients that don't meet the Internal Revenue Code's "More Likely Than Not" standard.
If there's any doubt in the tax preparer's mind about whether a certain deduction a client wants to take will pass muster with the IRS or courts, then by law they must bring that to the IRS' attention or face a monetary penalty...The penalties for preparers are stiff. The new standard raises the monetary penalty for tax preparers from $250 to either $1,000 or 50 percent of the tax return preparation fee, whichever is greater. That means if it costs $10,000 to prepare a company's return, and the tax position isn't accepted by the IRS, the tax preparer could be fined $5,000."

Click on link above for complete article