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.

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Both I and II could result in penalties against an income tax return preparer. Knowing or reckless disclosure or use of tax information obtained in preparing a return can result in a penalty of up to $1,000 per violation under IRC § 6713. Negligent or intentional disregard of rules and regulations, as well as the preparation of a return with a substantial understatement of tax liability may also lead to penalty assessment under IRC § 6694.

Which,if Any,of the Following Could Result in Penalties Against an Income