Yin-Li is the preparer of the Form 1120 for Cloves Corporation. On the return, Cloves claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.
$\begin{array}{lccc}\text {Form 8275 disclosure }&\text {Tax reduction that}&\text { Probability that the }&\text {Yin-Li's fee to}\
\text {on the return of the}&\text {resulted from the}&\text {deduction would be}&\text {complete the Cloves}\
\text {disputed deduction?}&\text {deduction (\$)}&\text {approved by the}&\text {return (\$)}\\end{array}$

Question

Yin-Li is the preparer of the Form 1120 for Cloves Corporation. On the return, Cloves claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.
 $\begin{array}{lccc}\text {Form 8275 disclosure }&\text {Tax reduction that}&\text { Probability that the }&\text {Yin-Li's fee to}\
\text {on the return of the}&\text {resulted from the}&\text {deduction would be}&\text {complete the Cloves}\
\text {disputed deduction?}&\text {deduction (\$)}&\text {approved by the}&\text {return (\$)}\\end{array}$

Quizplus · Accepted Answer

The Answer of Yin-Li is the preparer of the Form 1120 for Cloves Corporation. On the return, Cloves claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.
 $\begin{array}{lccc}\text {Form 8275 disclosure }&\text {Tax reduction that}&\text { Probability that the }&\text {Yin-Li's fee to}\
\text {on the return of the}&\text {resulted from the}&\text {deduction would be}&\text {complete the Cloves}\
\text {disputed deduction?}&\text {deduction (\$)}&\text {approved by the}&\text {return (\$)}\\end{array}$

Yin-Li Is the Preparer of the Form 1120 for Cloves