EA Exam Prep Part 3: Tax Penalties and Sanctions (Currently Unavailable)

Author: Eva Rosenberg, Susan Holtgrefe

This is the sixth class of the EA Exam Prep Part 3 series. In this TaxMama® created course, you’ll learn about the price paid for violating the rules and the law. From taxpayer penalties to preparer penalties, each will be explained. Find out when an infraction becomes a criminal act. Learn when it is permissible to charge contingency fees. Discuss type of misconduct and their repercussions. Discover when penalties can extend to employers, firms, and partners. Review various audit scenarios, and more.

Publication Date: October 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about practicing before the IRS and more. Excellent training for staff working in tax offices, accounting practices, corporate settings, independent bookkeepers, and others who must proofread tax returns containing this information. Passing the EA exam, they will be able to pull client records and transcripts and relieve the tax preparers from routine tasks. This is more than just a basic course. This course provides an in-depth look at penalties and sanctions. It is especially helpful to those with no hands-on experience with IRS audits and tax representation and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• The basics of penalties
• The authority for penalties, 26 U. S. Code
• Taxpayer penalties
• Preparer penalties
• Civil penalties
• Criminal penalties
• Types of penalties
• Penalties not applicable to the Tax Court
• Internal Revenue Manual
• Failure to file penalty
• Fraudulent failure to file penalty
• Failure to pay penalty
• Underpayment of estimated tax
• Writing a bad check to the IRS
• Failure to report tips
• Accuracy related penalties
• Penalties for exempt organizations
• Failure to file information returns penalties (W-2, Form 1099, etc.)
• Trust fund penalty
• Fraudulent return penalty
• Frivolous Tax Court action penalty
• Frivolous return penalty
• How "willfulness" affects penalties
• Felonious crimes and misdemeanors
• "Badges of Fraud"
• When contingent fees are permissible
• Office of Professional Responsibility sanctions
• Suspension from practice
• Disbarment
• When penalties extend to employers and firms
• Audit scenarios
• Reliance on advice of others
• Big No-No's for Tax Preparers
• Disclosure penalties
• Fraudulent representation penalties
• Preparer fraud
• 2018 IRS Dirty Dozen
• Disciplinary proceedings
• Formal proceedings
• Appeals
• Escaping penalties
• Penalties subject to abatement
• First time abatement
• Reasonable cause
• When the IRS owes you interest
• Avoiding interest

Learning Objectives

• Identify when an action becomes a criminal issue
• Identify penalties imposed upon taxpayers
• Recognize when it is permissible to charge contingency fees
• Identify the procedures for disciplinary proceedings
• Describe formal proceedings
• Recognize the appeals process
• Recognize sanctions, suspensions, and disbarment

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None