S.2851 - A bill 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:||Sen. Bunning, Jim [R-KY] (Introduced 04/14/2008)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 04/14/2008 Read twice and referred to the Committee on Finance. (All Actions)|
This bill has the status Introduced
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Summary: S.2851 — 110th Congress (2007-2008)All Information (Except Text)
Introduced in Senate (04/14/2008)
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.