§ 1.6694-0 Table of contents.

This section lists the captions that appear in §§ 1.6694-1 through 1.6694-4. (a) Overview. (1) In general. (2) Date return is deemed prepared. (b) Tax return preparer. (1) In general. (2) Responsibility of signing tax return preparer. (3) Responsibility of nonsigning tax return preparer. (4) Responsibility of signing and nonsigning tax return preparer. (5) Tax return preparer and firm responsibility. (6) Examples. (c) Understatement of liability. (d) Abatement of penalty where taxpayer's liability not understated. (e) Verification of information furnished by taxpayer or other third party. (1) In general. (2) Verification of information on previously filed returns. (3) Examples. (f) Income derived (or to be derived) with respect to the return or claim for refund. (1) In general. (2) Compensation. (i) Multiple engagements. (ii) Reasonable allocation. (iii) Fee refunds. (iv) Reduction of compensation. (3) Individual and firm allocation. (4) Examples. (g) Effective/applicability date. (a) In general. (1) Proscribed conduct. (2) Special rule for corporations, partnerships, and other firms. (b) Reasonable to believe that the position would more likely than not be sustained on its merits. (1) In general. (2) Authorities. (3) Written determinations. (4) Taxpayer's jurisdiction. (5) When “more likely than not” standard must be satisfied. (c) Substantial authority. (d) Exception for adequate disclosure of positions with a reasonable basis. (1) In general. (2) Reasonable basis. (3) Adequate disclosure. (i) Signing tax return preparers. (ii) Nonsigning tax return preparers. (A) Advice to taxpayers. (B) Advice to another tax return preparer. (iii) Requirements for advice. (iv) Pass-through entities. (v) Examples. (e) Exception for reasonable cause and good faith. (1) Nature of the error causing the understatement. (2) Frequency of errors. (3) Materiality of errors. (4) Tax return preparer's normal office practice. (5) Reliance on advice of others. (6) Reliance on generally accepted administrative or industry practice. (f) Effective/applicability date. (a) In general. (1) Proscribed conduct. (2) Special rule for corporations, partnerships, and other firms. (b) Willful attempt to understate liability. (c) Reckless or intentional disregard. (d) Examples. (e) Rules or regulations. (f) Section 6694(b) penalty reduced by section 6694(a) penalty. (g) Effective/applicability date. (a) In general. (b) Tax return preparer must bring suit in district court to determine liability for penalty. (c) Suspension of running of period of limitations on collection. (d) Effective/applicability date.