Episode Details

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The two primary penalties under IRC Section 6694 for unreasonable positions and willful or reckless conduct. - The distinction between the 'substantial authority' and 'reasonable basis' standards and when each applies. - How adequate disclosure, often using Form 8275, can help a preparer avoid penalties for positions lacking substantial authority. - The mechanics of the 'reasonable cause and good faith' exception as a defense against the unreasonable position penalty. - How liability can extend to non-signing preparers and the firms that employ them. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep