Important interim guidance, final tax preparer penalty regulations issued.

The AICPA has been providing input and recommendations to Treasury and the Internal Revenue Service on numerous occasions since May 2007 regarding the potential impact section 6694 revisions could have on tax practitioners, particularly the "more likely than not standard." We are pleased that recently issued final preparer penalty regulations and interim guidance reflect many of those recommendations.

On Dec. 15, 2008, Treasury and the IRS released interim guidance (Notice 2009-5) to address certain Oct. 2008 legislative changes to the preparer penalty provisions in Code section 6694. Specifically, Notice 2009-5 provides a reasonable approach regarding a position that might be considered a tax shelter within the meaning of section 6662(d)(2)(C)(ii) (a significant purpose...