Clara Mann Judisch v. United States

TJOFLAT, Circuit Judge:

Section 6694(a) of the Internal Revenue Code, 26 U.S.C. § 6694(a) (1982), 1 imposes a penalty on an income tax preparer 2 who understates a taxpayer’s liability on an income tax return by negligently or intentionally disregarding revenue rules and regulations. Section 6694(b) of the Code, 26 U.S.C. § 6694(b) (1982), 3 penalizes a tax preparer who willfully understates a taxpayer’s liability on a return. The principal question presented in this appeal is whether a tax preparer can be penalized under section 6694(b) if the understatement of taxpayer liabilities is caused…