Preparer Penalties
Overview
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Greater of $1,000 or 50% of the Preparation Fee – Unreasonable position
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Greater of $5,000 or 75% (50% prior to 2016) of the Preparation Fee – Willful or Reckless Conduct
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$635* – Per check - Negotiating a refund check
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$250/$1,000– Each - Improper return information disclosure
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$635*, up from $600 for filings in 2025 (generally 2024 returns) – Each failure to comply with Head of Household, EITC, Child Tax Credit & AOTC due diligence with no maximum.
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$65* – Each failure, $32,500* max. to…
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Furnish a completed copy of the return.
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Keep a copy of the return (or keep list).
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Reflect preparer’s ID number on return.
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Sign a return.
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File correct information returns
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Retain and make available a record of preparers employed, plus $60 for each failure to include a required item in that record.
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*Amount applies to returns or refund claims filed in 2025 (i.e., generally 2024 returns)
Related IRS Publications and Forms
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Form 8275 - Disclosure Statement
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Form 8275-R – Regulation Disclosure Statement
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Form 14157 – Complaint: Tax Return Preparer
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Form 14157-A - Tax Return Preparer Fraud or Misconduct Affidavit