Unformatted text preview: Explain. Under the Small Business and Work Opportunity Tax Act of 2007, P.L. 110-28 (SBWOTA), enacted on May 25, 2007, a new level of return preparer penalties under Sec. 6694(a) was established for tax returns prepared after that date. The new penalties cover both signing and nonsigning preparers (under Sec. 7701(a) (36)) of all tax returns (including claims for refunds and amended returns) such as gift and estate tax returns, employment and excise tax returns, and generation-skipping transfer tax returns. Sec. 6694(a), as amended, increases the penalty from $250 to the greater of $1,000 or 50% of the income that the preparer would derive (or to be derived) from the claim or tax return for which the penalty was imposed (Bruce E. May, 2008). 1040 order Label Filing status Exemptions Income AGI Tax and credits Payments Refund Signature Other Taxes...
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- Spring '08
- Accounting, Tax Returns, Taxation in the United States, Penalty, estate tax returns, excise tax returns, transfer tax returns