IRS Increases Penalties for Income Tax Preparers in 2018

[Elrod]

(CPA Practice Advisor) - All in an effort to minimize filing fraudsters, the IRS has accelerated major information form filing. And to drive home their emphasis, the IRS has drastically increased preparer penalties.

http://www.cpapracticeadvisor.com/news/12375789/irs-increases-penalties-for-income-tax-preparers-in-2018

[Catherine]

The headline says "preparer" but I only see taxpayer penalties.  If my client forgets about a 1099 vendor and only tells me in June, how can I be subject to penalty?  

[Edsel]

These had best be taxpayer penalties.  The date is March 25, 2018 and I am filing a Sch C for a small business proprietor.  He hasn't issued any 1099s yet, and depends on me to do so.  These will be late. 

Am I the party that's going to be penalized?  Better not.  I'll tell the client to do his own, which means the IRS will never get the information.

Some of these ridiculous government actions have unintended consequences.  The most prodigious example is a regulation in Great Britain which forces hospitals to see emergency patients within 8 minutes of their entry.  It is not uncommon to see dozens of cars circling the hospital because they won't allow entry into the facility.