Federal Tax Procedures R01B-12B

Some tax return preparer penalties.

1. If unreasonable position – greater of $1,000, or 50% of income derived.
2. Willful, reckless, intentional understatement – greater of $5,000 or 75% of income derived.
3. Failure to exercise due diligence for EIC, CTC, AOTC – $545 (2021) per failure.
4. Reckless unauthorized disclosure of info – up to $1,000 plus imprisonment.
5. $50 per failure up to $27,000 for other acts, such as, failure to sign return etc.