Section 6694 inteim guidance

In December of 2007 the IRS released two Notices, one clarifying Notice 2007-54, I.R.B. 2007-27, and the other providing interim rules implementing and interpreting the expanded tax return preparer penalty. (Notice 2008-11, I.R.B. 2008-3, December 31, 2007,, and Notice 2008-13, I.R.B 2008-3, December 31, 2007, at¶46,229). Notice 2008-11 clarifies that the transitional relief provided by Notice 2007-54 applies to original returns, timely amended returns and claims for refund (other than 2007 employment and excise tax returns) filed on or before December 31, 2007, including original returns filed before December 31, 2007 but due on extension after such date. The transitional relief also applies generally to nonsigning preparers for advice provided on or before December 31, 2007.

The interim rules and guidance discuss the relevant categories of tax returns or claims for refund for purposes of Code Sec. 6694, the definition of "tax preparer," the standards of conduct applicable to preparers for disclosed and undisclosed positions taken on tax returns, and the interim penalty compliance obligations applicable to preparers. The interim rules of are generally effective for all tax returns, amended tax returns, and claims for refund (other than 2007 employment and excise tax returns) filed on or after January 1, 2008 with respect to advice provided after that date, and 2007 employment and excise tax returns filed on or after February 1, 2008, with respect to advice provided on or after that date.(Notice 2008-13, I.R.B 2008-3, December 31, 2007.