Signature of Paid Preparer Revenue Delaware Form

Instructions and help about Signature Of Paid Preparer Revenue Delaware

can the IRS penalize you as a tax return preparer the short answer is yes let me explain there are several penalties the IRS could potentially assess against a tax return prepare however we will focus on IRS due diligence penalties what is a due diligence audit the IRS requires compliance with due diligence for certain tax benefits such as earn income credit or child tax credit that are a part of the IRS prepare compliance program the purpose of this program is to review returns prepared by tax preparers with a high chance of errors or potential fraud currently the penalty for not meeting due diligence requirements is $560 for each credit what does the audit process look like there are four steps selection notification review and determination we will explain this process one selection a tax return prepare may be selected for an examination if their client's returns are selected for audit due to errors on the returns normally there has to be several returns selected for examination tha