Video: Tax Preparer Penalties for Unethical Behavior

In this lesson, Nick Palazzolo, CPA, unpacks the consequences of unethical behavior for tax preparers, emphasizing the importance of adhering to legal and ethical standards. He meticulously goes through various penalties for different instances of noncompliance, such as failing to provide a copy of the tax return to the taxpayer, neglecting to sign as the preparer, or not giving their tax identification number. With his pragmatic approach, Nick illustrates how quickly fines can accumulate for multiple infractions on a single tax return. He also highlights significant penalties for more severe violations, such as negotiating a client's refund check without authorization, and the importance of due diligence when it comes to claims for the earned income tax credit. To ensure thorough comprehension, Nick discusses the heavy fines for aiding in understating tax liabilities and for wrongful disclosure of taxpayer information. Through this comprehensive overview, the necessity for rigorous adherence to tax laws and regulations becomes clear.