Course Information

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Penalty Exposure for Estate Planners that are Return Preparers
Author: Charles Rettig

Description:
Many planners wrongly believe that they are not subject to Code Sec. 6694 (Understatement of Taxpayer's Liability By Tax Return Preparer) because they do not directly prepare or sign returns and merely render tax and family wealth transfer related advice. However, under Code Sec. 6694, a "preparer" need not even see the return leading to assertion of the penalty.

This course describes recent statutory changes to Code Sec. 6694 and the related final regulations, discusses the criteria for signing preparers versus nonsigning preparers, and explains how to compute the income derived in terms of the Code Sec. 6694 penalty.

It also discusses situations in which a reasonable basis exception applies and the degree to which practitioners may rely on information from third-party documents and other preparers.

Course Details:
Price:  $34.00
Field of Study:  Taxes
Prerequisites:  None
Level:  Overview
CTEC course number:  1075-CE-5566
Course was last updated on:  05/11/2009
Library:
Learning Center Core
Tax Return Preparation
Wealth Management

Technical Requirements:
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Credit Available For: Units
CFP (Accepted by the CFP Board) 1.00 CPE
CPE 2.00 CPE
CTEC Federal 2.00 CE
Enrolled Agent (Accepted by the IRS) 2.00 CPE
QAS 2.00 CPE

Note: Recommended CPE credit is based on a 50-minute hour. Participants earning credits for states that require self-study to be based on a 100-minute hour will receive half the recommended CPE credits for successful completion of this course.

Since Continuing Professional Education requirements vary from state to state and are subject to change without notice, please contact your state board of accountancy for information on your CPE requirements and the applicability of this course to meet those specifications.

CCH has been approved by the California Tax Education Council to offer courses that provide federal and state credit towards the annual "continuing education" requirement imposed by the State of California. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.