Avoiding Or Responding To Tax Preparer Penalties

In a return preparer criminal investigation, preparers face possible prosecution if criminal activity is suspected. Those who manage to avoid criminal charges may still face civil examination with extensive civil penalties.

At Brown, PC, in Dallas-Fort Worth, we can help you limit the serious civil penalties that could cripple your business. Our track record of results includes minimizing or even eliminating civil consequences for past clients that could have caused financial devastation.

What Types Of Penalties Or Sanctions Are You Facing?

Numerous sections of the Internal Revenue Code contain penalties for paid preparers who understate a taxpayers' liability or commit other violations.

For civil violations, the consequences start with financial penalties. These may be as much as $1,000 per return or 50 percent of the income that the preparer received for preparing the relevant returns. This amount can be quite substantial — especially when thousands of returns are involved.

Civil sanctions can also include suspension and expulsion from the IRS e-file program, as well as an injunction against a preparer doing further preparation of returns for others.

If fraud was involved, there is also the possibility of criminal sanctions.

How Our Knowledge Of Tax Law Can Benefit You

Attorney Lawrence Brown is a former Department of Justice Tax Division Trial Attorney. If you are facing criminal and civil penalties, you need his knowledge and experience in your corner to make smart decisions.

There are many areas of tax law where reasonable preparers differ as to statutory interpretation. We partner with experts who can testify to these statutory nuances, proving to the court that our clients did not make mistakes or that those alleged mistakes were, in fact, reasonable actions.

We know that our clients — certified public accountants, tax attorneys, return preparers and other financial professionals — often acted in good faith. By demonstrating this, we assist them in avoiding potentially serious civil penalties.

Consult With Us Regarding Civil Tax Penalties

Contact us to schedule a confidential consultation to discuss your situation. Our centrally located main office is in the Dallas-Fort Worth area of Texas, and we assist clients throughout the United States. Call us toll free at 888-870-0025 or contact us online to discuss your legal concerns with an experienced lawyer.

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