A tax return preparer who understates the liability of the taxpayer due to reckless or intentional disregard of the rules or regulations will be subject to a flat $500 penalty.

Question

Quizplus · Accepted Answer

The penalty for a tax return preparer who understates a taxpayer's liability due to reckless or intentional disregard of rules or regulations is not a flat $500. The actual penalty amounts can vary and are typically based on the nature of the misconduct and the resulting understatement of tax.

A Tax Return Preparer Who Understates the Liability of the Taxpayer