H.R.4318 - To amend the Internal Revenue Code of 1986 to modify the penalty on the understatement of taxpayer's liability by tax return preparers.110th Congress (2007-2008)
|Sponsor:||Rep. Crowley, Joseph [D-NY-7] (Introduced 12/06/2007)|
|Committees:||House - Ways and Means|
|Latest Action:||12/06/2007 Referred to the House Committee on Ways and Means. (All Actions)|
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Summary: H.R.4318 — 110th Congress (2007-2008)All Bill Information (Except Text)
Introduced in House (12/06/2007)
Amends the Internal Revenue Code to modify the standards for imposing penalties on tax return preparers for understatements of tax to require: (1) substantial authority for a position with respect to an item on a tax return if such position was not disclosed with the return; and (2) a reasonable basis for a position which was disclosed with the return.
Requires tax return preparers to have a reasonable belief that a position with respect to a tax shelter or a reportable transaction (a transaction having a potential for tax avoidance or evasion) will more likely than not be sustained on its merits.