California Revenue and Taxation Code

§ 19166

RTC § 19166 Effective Jan 1, 2011Div. 2 · Part 10.2 · Ch. 4 · Art. 7

Statute text

(a)A penalty shall be imposed for understatement of any taxpayer’s liability by a tax return preparer and shall be determined in accordance with Section 6694 of the Internal Revenue Code, relating to understatement of taxpayer’s liability by tax return preparer, except as otherwise provided.

(b)(1) Except as provided in paragraph (2), Section 6694(a)(1) of the Internal Revenue Code is modified to substitute “$250” for “$1,000.”

(2)For taxpayers that have a reportable transaction, as defined in Section 6707A(c)(1) of the Internal Revenue Code, with respect to which the requirements of Section 6664(d)(2)(A) of the Internal Revenue Code are not met, any listed transaction, as defined in Section 6707A(c)(2) of the Internal Revenue Code, or a gross misstatement within the meaning of Section 6404(g)(2)(D) of the Internal Revenue Code, paragraph (1) shall not apply.

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Legislative history

Amended by Stats. 2010, Ch. 14, Sec. 47. (SB 401) Effective January 1, 2011.