Enrolled Agent Exam [Part 3] 33, Preparer Penalties Under IRC Section 6694

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:

- The two primary penalties under IRC Section 6694 for unreasonable positions and willful or reckless conduct.

- The distinction between the 'substantial authority' and 'reasonable basis' standards and when each applies.

- How adequate disclosure, often using Form 8275, can help a preparer avoid penalties for positions lacking substantial authority.

- The mechanics of the 'reasonable cause and good faith' exception as a defense against the unreasonable position penalty.

- How liability can extend to non-signing preparers and the firms that employ them.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep