TRP Penalties Flashcards
What is the penalty for failing to pay?
1/2% per month
What is the penalty for aiding and abetting in the understatement of a client’s tax liability?
$1000 or $10,000 for Corporations
What is the penalty for disclosing client supplied information without authority?
$250
What is the penalty for substantial valuation misstatement?
20%
What is the negligence penalty with respect to an understatement of tax?
20%
What is the penalty for failing to file a partnership or S corporation?
$235 per month
What is the penalty for failing to furnish the tax identification number of the tax return preparer?
$60
True or False
There is no penalty for failure to make estimated income tax payments
False
What is the penalty for substantial underpayment of tax?
20%
True or False
There is a penalty for preparing or signing a tax return when the practitioner does not have a PTIN
True
What is the penalty for endorsing/negotiating a client’s refund check?
$635
What is the penalty for failing to provide the client a copy of his/her tax return?
$60
True or False
There is an earned income penalty
True
What is the penalty for failing to file?
5% per month
What is the penalty for failing to sign a tax return or refund claim?
$60
What is the penalty for failing to be diligent in determining a client’s eligibility for the earned income credit?
$635
What is the penalty for failing to retain records properly?
$60
What is the penalty for failing to correct information returns?
$60
What is the penalty for understating a client’s tax liability due to an unreasonable tax position?
$1,000 or 50%
What is the penalty for understating a client’s tax liability due to willful or reckless misconduct and negligent or intential disregard of tax rules?
$5,000 or 75%
True or False
The penalty for failure to file information returns does not apply to the extent that the failure is due to reasonable cause and not due to willful neglect.
True
