Which, if any, of the following could result in penalties against an income tax return preparer? I. Knowing or reckless disclosure or use of tax information obtained in preparing a return.
II) A willful attempt to understate any client's tax liability on a return or claim for a refund.

Question

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Both of the actions mentioned in I and II can result in penalties against an income tax return preparer. A preparer who knowingly or recklessly discloses or uses tax information obtained in preparing a return can face penalties under IRC Section 7216. Similarly, a preparer who willfully understates a client's tax liability on a return or claim for a refund can be subject to penalties under IRC Section 6694.

Which, If Any, of the Following Could Result in Penalties