Artificial Intelligence Limitations & Problems, Part 1: Avoiding Due Diligence Penalties

Description

This course covers the limitations of artificial intelligence searches and the due diligence needed to protect tax return preparers and their clients from penalties under §§6604 and 6662 respectively.

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Identify common artificial intelligence limitations and errors that may lead to penalties under §§6662 and 6694.
• Calculate penalties under §§6662 and 6694.
• Explain the effect that the reasonable basis standard has no penalties under §§6662 and 6694.
• Explain the effect that the substantial authority standard has on penalties under §§6662 and 6694.
• Describe the difference between the substantial authority standard and the reasonable basis standard.
• Describe the steps needed to ensure that an artificial intelligence answer complies with the substantial authority or the reasonable basis standard.
• Identify the substantial authorities listed under Reg. §1.6662-4(d).
• Explain the effect that precedence under §6110(k) has on a taxpayer's tax liability and penalties under §§6662 and 6694.