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HR 4318 110th Congress House Taxation Evidence (Law) Government Operations and Politics Government paperwork Income tax Law Tax evasion Tax penalties Tax preparers Tax returns Tax shelters

To amend the Internal Revenue Code of 1986 to modify the penalty on the understatement of taxpayer's liability by tax return preparers.

Introduced: December 6, 2007 See on congress.gov
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Dec 6, 2007
Referred to the House Committee on Ways and Means.
Dec 6, 2007
Introduced in House
 Plain-English summary Congressional Research Service

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.

What's happening now December 6, 2007

Referred to the House Committee on Ways and Means.

 Committees of jurisdiction 1