Enrolled Agent Exam [Part 3] 37, Preparer Penalty Assessment and Appeal

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- That an IRS examiner's immediate supervisor must provide written approval before a preparer penalty can be formally proposed.

- The first step in disputing a proposed penalty is to respond to the 30-day letter by requesting a conference with the IRS Independent Office of Appeals.

- The crucial 'Pay 15 to Stay in the Game' rule: a preparer must pay 15% of the assessed penalty and file a refund claim to be eligible to sue in U.S. District Court.

- The key difference between a pre-assessment administrative appeal and a post-assessment judicial refund claim.

- That once a penalty is assessed and remains unpaid, the IRS can use standard collection procedures, such as liens and levies, to collect the debt.

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