Reliance On Tax Preparer

You may be able to escape the negligence penalty by showing you relied on a professional preparer to complete your tax return. However, getting a paid preparer to sign your return doesn't automatically mean you can escape the penalty. To rely reasonably upon advice so as to negate an accuracy-related penalty you must prove by a preponderance of the evidence that you meet all of the following requirements:

(1) The adviser was a competent professional who had sufficient expertise to justify reliance
(2) you provided necessary and accurate information to the adviser, and
(3) you actually relied in good faith on the adviser's judgment.

But you've got to be able to show that you provided the necessary information to the preparer. In addition, you have to show you reviewed the return before signing it.

A/N Group, Inc.