Reg. § 58.6694-1 Section 6694 penalties.
(a) Penalties applicable to tax return preparer For general definitions regarding penalties under section of the Internal Revenue Code (Code) applicable to preparers of tax returns or claims for refund of tax under chapter 37 of the Code, see .
(b) Penalties for understatement due to an unreasonable position A person who is a tax return preparer of any return or claim for refund of tax under chapter 37 may be subject to penalties under section in the manner stated in .
(c) Penalties for understatement due to willful, reckless, or intentional conduct A person who is a tax return preparer of any return or claim for refund of tax under chapter 37 may be subject to penalties under section in the manner stated in .
(d) Extension of period of collection when tax return preparer pays 15 percent of a penalty for understatement of taxpayer's liability and certain other procedural matters The rules under , relating to the extension of period of collection when a tax return preparer who prepared a return or claim for refund of tax pays 15 percent of a penalty for understatement of taxpayer's liability and to procedural matters regarding the investigation, assessment, and collection of the penalties under sections and (b), apply to a tax return preparer who prepared a return or claim for refund for tax under chapter 37.
(e) Applicability date This section applies to returns and claims for refund filed, and advice provided, after June 28, 2024, and during taxable years ending after June 28, 2024.