Why you should attend
The number of tax penalties assessed by the Internal Revenue Service has increased dramatically over the past several years. For example, assessments of accuracy-related penalties against individuals and corporations rose from 59,708 in 2005 to 472,961 in 2010, a nearly 800% increase! At the same time, the Internal Revenue Service is focusing more than ever before on the conduct of professionals, through return preparer penalties, Circular 230 enforcement and even criminal prosecutions. Sophisticated and responsible practitioners engaged in tax planning or tax controversies must understand where the lines are drawn and consider application of penalties when appropriate. However, accounting and law school tax classes rarely focus on penalties, leaving practitioners to pick up the relevant standards and procedures from the trial and error of daily practice.
This new one-day seminar is a unique opportunity to review the various tax penalties that can be imposed, the standards and transactions that can trigger penalties and sanctions, the procedures the Internal Revenue Service must follow to assess penalties and the defenses that can be asserted. We have assembled an expert faculty of experienced private practitioners and government representatives to explain how penalties work, why they are assessed and how you can protect yourself and your client.
What you will learn
- Understand why penalties are assessed, which penalties apply to what types of conduct, and who can be subject to penalties, the taxpayer, the preparer, or both
- Explore the difference between professional ethical standards of conduct, Circular 230 standards and tax penalties
- Find out how certain you have to be before you can advise a client to take a tax position on a return
- Learn to recognize when you can rely on your client for information and when you have to dig deeper
- Examine situations where conduct is so egregious that it can trigger a fraud penalty
- Discover what turns a civil penalty case into a criminal tax prosecution
- Get tips on approaching tax situations that involve potentially criminal conduct
Who should attend
Law firm and accounting firm professionals who advise clients on structuring transactions and who represent clients in tax controversies; in-house tax professionals involved in tax planning, FIN 48 determinations and tax audits and appeals; and government agents and attorneys who want a primer on tax penalties and ethical standards.
Morning Session: 9:00 a.m. - 12:30 p.m.
9:00 Introduction and Opening Remarks
Bryan C. Skarlatos
9:15 Delinquency & Accuracy-Related Penalties
- A Day Late and a Dollar Short: Delinquency Penalties
- Failure to file
- Failure to pay
- Are You Sure You Are Right? Accuracy-Related Penalties
- Substantial understatement
- Valuation misstatement
- Transaction lacking economic substance
John V. Cardone, Lisa Flores, Barbara T. Kaplan, Bryan C. Skarlatos, Sally A. Sattan
11:00 Networking Break
11:15 But It’s Not My Fault: Reasonable Cause Defenses
- Reasonable cause and good faith
- Reliance on professionals
- Special rules for tax shelters
Roland Barral, Diana L. Wollman
1:15 Reportable Transaction Penalties & Foreign Financial Asset Penalties
- Now That’s Aggressive: Reportable Transaction Penalties
- Reportable transaction understatement
- Failure to report reportable transaction
- Material advisor penalties
- I Had To Report That? Foreign Financial Asset Penalties
- Undisclosed foreign financial asset understatement
- Failure to file information returns
- Foreign bank account report
Megan L. Brackney, Ian M. Comisky, Michael A. Halpert, John C. McDougal, Maria T. Stabile
2:45 Special Rules for the Professionals: Return Preparer Penalties and Ethical Standards
- Understatement of a taxpayer’s liability by a return preparer
- Promoting abusive tax shelters
- Aiding and abetting understatements
- Circular 230 rules and sanctions
Professor Linda Galler, Emily M. Lesniak
3:45 Networking Break
4:00 Crossing the Line: Civil and Criminal Tax Fraud
- Definition of tax fraud
- Difference between civil and criminal fraud
- What makes a criminal prosecution
- Criminal penalties for preparers
- Consequences of a criminal prosecution
Frank Agostino, Daniel W. Levy, Kathleen M. Pakenham
~ Area Counsel, (LB&I - Financial Services), Office of Chief Counsel, Internal Revenue Service
John V. Cardone
~ Deputy Area Counsel (Small Business/Self-Employed Division), Internal Revenue Service
~ Deputy Area Counsel (Strategic Litigation); LB&I, Area 1 (Financial Services), Internal Revenue Service
Michael A. Halpert
~ Program Manager, Team 1220 for Tax Shelter Promoter Compliance Specialists (LB&I-Financial Services), Internal Revenue Service
Emily M. Lesniak
~ Attorney (Procedure and Administration), Internal Revenue Service
John C. McDougal
~ Special Trial Attorney, Office of Chief Counsel, Internal Revenue Service
Sally A. Sattan
~ Staff Attorney, Low-Income Taxpayer Clinic, Northeast New Jersey Legal Services
Maria T. Stabile
~ Associate Area Counsel (LB&I, Financial Services), Internal Revenue Service
New York City Seminar Location
PLI New York Center, 810 Seventh Avenue at 53rd Street (21st floor), New York, New York 10019. Message Center, program days only: (212) 824-5733.
New York City Hotel Accommodations
The New York Hilton & Towers
1335 Avenue of the Americas, New York, NY 10019. 1 block from PLI Center. Reservations 1-800-HILTONS or, 1-877-NYC-HILT. Please mention that you are booking a room under the Practising Law Institute Corporate rate and the Client File # is 0495741. You can also make reservations
online to access Practising Law Institute rates.
The Warwick New York Hotel, 65 West 54th Street New York, NY 10019. 1 block from PLI Center. Reservations 800-223-4099 or, hotel direct 212-247-2700. Please mention that you are booking a room under the Practising Law Institute Corporate rate. Reservations on line at www.warwickhotelny.com Click reservations in menu bar on left. Select desired dates. In 'Special Rates' drop down window select Corporate Rate. In 'Rate Code' enter PLIN. Click search and select desired room type and rate plan. Or, you may email reservation requests to: email@example.com
Sheraton New York Hotel & Towers
, 811 7th Avenue, New York, NY 10019, 1-800-325-3535 or (212) 581-1000. When calling, please mention Practising Law Institute and mention SET#311155. You may also book online
PLI's live programs are approved in all states that require mandatory continuing legal education for attorneys, except Arizona. Please be sure to check with your state for details.
Please check the CLE Calculator above each product description for CLE information specific to your state.
Special Note: In New York, newly admitted attorneys may receive CLE credit only for attendance at "transitional" programs during their first two years of admission to the Bar. Non-traditional course formats such as on-demand web programs or recorded items, are not acceptable for CLE credit. Experienced attorneys may choose to attend and receive CLE credit for either a transitional course or for one geared to experienced attorneys. All product types, including on-demand web programs and recorded items, are approved for experienced attorneys.
Please note: The State Bar of Arizona does not approve or accredit CLE activities for the Mandatory Continuing Legal Education requirement.
If you have already received credit for attending some or the entire program, please be aware that state administrators do not permit you to accrue additional credit for repeat viewing even if an additional credit certificate is subsequently issued.
Credit will be granted only to the individual on record as the purchaser unless alternative arrangements (prearranged groupcast) are made in advance.