6662(c) and 6694(b)

Section 6662(a) imposes a penalty in an amount equal to 20 percent of the portion of the underpayment of tax attributable to one or more of the items set forth in section 6662(b) , including negligence or disregard of rules or regulations.
Section 6662© defines “negligence” to include any failure to make a reasonable attempt to comply with the provisions of Title 26 and the term “disregard” includes any careless, “reckless,” or intentional disregard. See also 1.6662-3(b)(2). A “disregard is ‘reckless’ if the taxpayer makes little or no effort to determine whether a rule or regulation exists, under circumstances which demonstrate a substantial deviation from the dtandard of conduct that a reasonable person would observe.”

Compare 6694(b)(2)(B) which provides the onorous 6694B) $,5000 50% of income penalty for "reckless" conduct.

This is an extention of the prior blog which deals with this issues.

The creates the anamoly that something "negligent" under 6662(c) can set a return preparer up for the 6694(b) penalty.