Timely article

[kcjenkins]

IRS Penalties: Speak Softly and Carry Form 8275

http://www.accountingtoday.com/news/irs-penalties-form-8275-64062-1.html?ET=webcpa:e6108:61496a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=WebCPA_Daily_092512

[Elrod]

Yeah.....And then starts the run around.....................

8275---Do not use this form to disclose items or positions that are contrary to Treasury

regulations. Instead, use Form 8275-R, Regulation Disclosure Statement.

See separate instructions.

8275-R--Use this form only to disclose items or positions that are contrary to Treasury

regulations. For other disclosures, use Form 8275, Disclosure Statement.

See separate instructions.

Just imagine the time that could be charged for research fees, and so on...and so on...and so on!

[kcjenkins]

Should be very rare to use the 8275-R.

[jainen]

Excellent article, KC! I suggest printing it double-spaced so you can read between the lines. Take that next-to-last paragraph. In the old days before the IRS decided to put pressure on tax preparers, we use to worry that pointing the IRS to exactly what's wrong with the return was usually not in the client's best interest. It still isn't. Author's recommendation: document that you attached Form 8275, then let the client remove it!

So what are the legitimate uses of disclosure? In this forum I have several times recommended Form 8275 when you disagree with a 1099. We're all seeing more and more flawed 1099s, sometimes blatantly so. For a lot of the other stuff we talk about here, Form 8275 is worse than bad. Like claiming a dependent under a divorce decree; that's an unsupportable position and your best hope is the IRS won't find out. (Which hope by the way is specifically prohibited under Circular 230, at least for covered opinions.) Other times I often protest threads that contain the word "intent," but I suppose Form 8275 might offer some protection to a preparer with lots of proof. But if you have lots of proof, you'll probably win anyway so why wave the red flag?