Are IRS Penalties a Fact of Life?
Author: Lippes Mathias, Randall P. Andreozzi
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
IRS has in its arsenal a vast array of penalties for virtually every transgression or misstep imaginable – late filing, late payments, incorrect return positions, foreign financial asset reporting, improper refund claims, to name but a few. And under recent IRS Enforcement Initiatives, IRS Agents impose these penalties aggressively and often as a matter of course. But penalties need not be an oppressive fact of life. This course will explore the penalties available to the IRS and the elements of proof necessary for the IRS to impose them. We will review recent court opinions imposing dramatic limitations on the IRS’ use of penalties, its ability to assess penalties immediately without due process, and the important requirement of managerial approval of penalties. We will provide important practice tips in navigating this legal quagmire to effectively and efficiently defend clients against IRS penalties. Indeed, penalties are not an unavoidable fact of life.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN cardPublication Date: May 2025
Designed For
CPAs and Enrolled Agents providing tax compliance services for partnerships, corporations and high net worth individuals
Topics Covered
- The vast array of penalties in the IRS’s arsenal
- What the IRS must establish to assert these penalties
- What’s the difference between an assessable penalty and a non-assessable penalty and why is that important?
- The IRS must show managerial approval of a penalty to enforce the penalty
- Practical insights and procedure in challenging penalties
Learning Objectives
- Identify the elements that the IRS must establish to impose various penalties
- Explain how to assist your clients in avoiding IRS penalties
- Identify how to assist your clients in effectively and efficiently challenging unwarranted IRS penalties
- Identify new and significant judicial precedent regarding penalties and the IRS’s ability to assess them
- Explain the managerial approval the IRS needs to assert penalties and identify strategies to successfully verify that such approval was secured
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
