The Small
Business and Work Opportunity Tax Act of 2007 recently signed by the
President included three provisions aimed at helping address the
federal tax gap.
In general:
Section
8243 provides that levies issued to collect federal employment taxes
are excepted from pre-levy Collection Due Process (CDP) hearing
requirements if the taxpayer previously requested a CDP hearing.
(Effective for levies issued 120 days after enactment.)
Section 8246 broadens tax return preparer penalties to include
estate and gift, employment, and excise tax returns, as well as returns
of exempt organizations. It also increases the related penalties.
(Effective for tax returns prepared after the date of enactment.)
Section 8247 imposes a penalty equal to 20 percent of the disallowed
portion of erroneous refund claims when there is no reasonable basis.
(Effective for claims filed after the date of enactment.)
Further guidance will be forthcoming.
Related Link:
- For more information on the Sections 8243, 8246, and 8247 respectively, go to pages 30-31 and 34-36 in the technical explanation of the Small Business and Work Opportunity Tax Act Of 2007.
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