@abctax55 At Tax Seminar several years ago,  I asked the instructor about this during a break... He said that the IRS does not fine tax preparers the first time, but rather gives them a warning. I have never heard of a tax preparer in my area being subject to these fines, but apparently in some areas, like NYC, it does happen. The bottom line is if we do our due diligence, then hopefully there will not be a problem. Just my opinion.