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In 1955 there were only 14 taxpayer penalties. Today there are over 170! Penalties have shifted from being a technique to encourage voluntary compliance to a revenue raiser for the government.

This course reviews the penalties assessed to taxpayers, especially the automatic penalties, and show you steps to avoid them as well as to have them abated. Last year alone, nearly 40% of all penalties assessed were abated.

This course is taught by Professor Arthur Reed, CPA, MBA, MST and falls under the CE Federal Tax category.

Learning Objectives

Upon successful completion of this course the participant will be able to understand the following 10 tips regarding avoiding client penalties.

  • Tip #1 Be Ready For Your Clients To Be Penalized
  • Tip #2 Prepare your penalty defense early
  • Tip #3 You can't be penalized on a refund
  • Tip #4 Be tough on filing a valid extension
  • Tip #8 Understand the thresholds when dealing with valuations
  • Tip #9 Don't simply accept the penalty and Tip #10 Don't keep your penalized clients
  • Learn about Accuracy Related Penalties, Fraud, Remedies and Substantial Valuation Misstatements
Last updated/reviewed: January 10, 2023
2 Reviews (14 ratings)


Anonymous Author
this course had great tips on how to avoid tax related penalties and get them abated.

Anonymous Author
Good examples but it would be better to have slides versus watching someone talking.

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Introduction to Top Ten Tips To Help Your Clients Avoid Penalties04:23
  Tip #1 - Be Ready For Your Clients To Be Penalized20:27
  Tip #2 - Prepare your penalty defense early4:32
  Tip #3 - You can't be penalized on a refund13:43
  Tip #4 - Be tough on filing a valid extension11:30
  Tip #5 - Failure to pay is better than failure to file3:49
  Estimated Tax Payments6:11
  Tip #7 - Follow up on action items7:46
  Accuracy Related Penalties19:09
  Substantial Valuation Misstatements20:27
  Tip #8 - Understand the thresholds when dealing with valuations1:52
  Tips #9 and #10 3:58
  Top Ten Tips to Help Your Clients Avoid Penalties Glossary/IndexPDF