Cooper is a CPA and prepared several tax returns during the current tax year for compensation. In the rush to get returns filed timely, he failed to sign three of the returns that he prepared. How much is his failure to sign penalty?
Cooper is a CPA and prepared several tax returns during the current tax year for compensation. In the rush to get returns filed timely, he failed to sign three of the returns that he prepared. How much is his failure to sign penalty?
Question 12 options:
The failure to sign a tax return penalty is typically assessed by the IRS when a paid tax preparer (such as a CPA) fails to sign a return they have prepared.
In calendar year 2022, the penalty for each failure of a tax preparer to sign a tax return is $50, with a maximum penalty of $27,000 for the year.
In calendar year 2023, the penalty for each failure to sign a tax return increases to $55, and the maximum penalty cannot exceed $28,000 for the year.
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