V. Russell Grunwald, CPA

Disclaimer - Tax-preparers, Tax Consultants, Tax Advisors and Penalties. The 2007 Small Business Tax Act expanded preparer penalties to tax-preparation engagements, including gift and estate tax returns and valuations, among others. The 2007 law, coupled with the Emergency Economic Stabilization Act of 2008, has altered certain "standards" of conduct applicable to certified public accountants who are involved in tax return preparation, such as the "realistic possibility standard" and the "not-frivolous position standard", replacing these with a "substantial authority" tax treatment and the "reasonable basis for tax treatment" standard, respectively. It is my opinion that CPA tax preparers, those not otherwise "eligible to practice before tax court', are not "legal advisors" (as the term might, generally, be construed) and should not (nor can they) be placed in a position to determine whether or not a particular position taken by them (in the process of preparing a return for a client) on a tax return will sustain a favorable decision to a taxpayer in a court of law. As such, unless I am engaged by you to address these issues specifically, I am not obligated to determine whether or not a position taken by me in this communication or on a return prepared by me will sustain itself or will sustain a favorable result for you in a court of law. Nevertheless, I am required by Circular 230 to inform you that any statements (or email correspondence) contained herein are not (is not) intended or written by me to be used, and cannot be used, by you or any other persons or entities for the purpose of avoiding any penalties that might be imposed by federal tax law. Therefore, please seek an independent professional tax advisor to address these issues specifically in the context of your particular situation.