Return Preparer Penalties
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The Tax Practice of IIT Chicago-Kent College of Law
The Tax Practice of IIT Chicago-Kent College of Law


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Chicago Attorneys for Return Preparer Penalties

chicago lawyers for tax preparer penalties

Illinois Tax Preparer Penalty Lawyers

For several years, the IRS has been on a very public and aggressive campaign to regulate the tax return preparation industry. After suffering a recent loss in the courts with its attempts to require registration and training (see Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014)), the agency has stepped-up its efforts to penalize preparers it believes are negligently or fraudulently preparing federal tax returns.

These penalties are monetary, criminal, and injunctive (cases brought by the U.S. Department of Justice on behalf of the IRS to close return preparer businesses permanently for noncompliant conduct). If you are a return preparer, you are vulnerable simply because of your profession, and may be subject to extreme scrutiny, even if you have done nothing wrong whatsoever.

Did you know that if you prepare 11 or more tax returns for compensation in a year you must file those returns electronically? Did you know that you are required to review, copy, and retain certain, specific documents if you are preparing tax returns claiming an Earned Income Tax Credit on behalf of your clients? Did you know that the IRS believes you should fully and sincerely investigate the legitimacy of a client's claimed Schedule C (sole proprietorship) business activity, especially if the activity generates a net loss?

Contact Experienced Chicago Tax Lawyers

At the Tax Practice of IIT Chicago-Kent College of Law we have been successfully and forcefully representing tax return preparers for many years, both in the civil and criminal contexts. When I was employed as an attorney for the IRS, I spent a substantial amount of my time reviewing proposed criminal tax prosecutions, and providing advice to the "Special Agents" investigating potential violations of the criminal provisions of the Internal Revenue Code.

If you are a return preparer and have been contacted by the IRS for a "compliance check", or simply want some advice on staying compliant with the IRS return preparer rules, please contact us. We offer honest and straightforward counsel, and aggressive, ethical representation before the Service and in the courts.

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