#Irc 6662a code#

The CDP Settlement Officer (SO) reviewed the case and noted the agreement pertaining to the tax return preparer penalties and the signed closing agreement. Taxpayer did not identify any other issues on the form or dispute the underlying liability. Taxpayer timely filed the request for a hearing, highlighting her desire for an installment agreement and lien withdrawal. Subsequently, the IRS began collection activities for the settled liabilities-filing a notice of federal tax lien (NFTL) for the years at issue and notifying her of her right to a Collection Due Process (CDP) hearing. The second component of the settlement-the stipulated decision-resulted in taxpayer agreeing to: (1) a $53,466 tax deficiency and an IRC В§6662(a) accuracy-related penalty in the amount of $10,693 for tax year 2007, and (2) a $19,575 tax deficiency and IRC В§6662(a) accuracy-related penalty in the amount of $3,915 for tax year 2010. Additionally, the closing agreement вЂњspecified that it was вЂfinal and conclusiveвЂ™ except that the matter could вЂbe reopened in the event of fraud, malfeasance, or misrepresentation of fact.'вЂќ First, it resolved taxpayerвЂ™s IRC В§6694(b) tax return preparer penalties such that: (1) taxpayer was liable for an amount of $40,0 and $10,0, and (2) no abatement or refund claim would be filed or considered regarding those penalties. The closing agreement accomplished two things. Ultimately, the parties reached a settlement comprised of a signed вЂњclosing agreementвЂќ and a stipulated decision.

While the matter was pending in court, the IRS also examined her business clientsвЂ™ returns and determined taxpayer was liable for tax return preparer penalties under IRC В§6694(b) for tax years 20. Taxpayer timely filed a petition for redetermination with the Tax Court. The NOD asserted tax deficiencies and penalties for both years. In 2013, the IRS issued taxpayer a notice of deficiency (NOD) regarding tax years 20. Taxpayer and her father ran a tax return preparation partnership, which dissolved in 2010.

The Court determined that: (1) deficiency procedures are inapplicable to the assessment or collection of tax return preparer penalties, and (2) execution of a вЂњfinal and conclusiveвЂќ closing agreement waived the procedural requirement of IRC В§6751(b)(1). Commissioner, considered this IRC В§6751(b)(1) supervisory approval requirement in the context of tax return preparer penalties for which taxpayer signed a closing agreement determining those penalties and relinquishing her ability to pursue abatement or refund of them later. Recently, the Tax Court in Rockafellor v.

#Irc 6662a code#

Generally, per Internal Revenue Code (IRC) В§6751(b)(1), the Internal Revenue Service (IRS) is precluded from assessing a penalty unless the initial determination assessment вЂњis personally approved (in writing) by the immediate supervisor of the individual making such determination or such higher level official as the Secretary may designate.вЂќ Execution of Closing Agreement for Tax Return Preparer Penalties Waived Supervisory Approval Requirement