Video: Standards for Tax Preparation

In this lesson, let loose with Nick Palazzolo, CPA, as he demystifies the standards for tax preparation, breaking them down into digestible bits for better understanding. Nick eloquently navigates the distinction between ordinary negligence and outright fraud, offering clear examples to illustrate the differences. Dive into the nuanced categories of tax positions, from ‘more likely than not’ to substantial authority, and grasp the concept of reasonable basis. This engaging exploration sheds light on the responsibilities and potential pitfalls for both tax preparers and taxpayers. It walks through the identification of tax return preparers, even venturing into personal anecdotes regarding Nick's own experience. With a less-is-more approach, the session clarifies the likelihood of tax positions being upheld and the gravity of penalties for negligence versus fraud. It also lays out the criteria that define a professional tax return preparer, how to discern one's role in tax preparation, and the implications it has on legal obligations.