Under Section 6694, there are several penalties that can be assessed if a taxpayer's tax liability is understated. A tax preparer prepared a tax return for a client based on the information the client provided. Instead of entering $100,000 for the client's wages, the tax preparer filed the return with total wages of $10,000. The IRS is assessing penalties on the tax preparer based on the Understatement of Tax Liability (Section 6694). Create one initial post and respond to at least two of your classmates' posts. For your initial post, address the following: What are the legal roles and responsibilities of the tax preparer in this case? What are the exemptions available to the tax preparer under Section 6694? What is the statute of limitations on Section 6694 penalties? Does the numerical error exempt the tax preparer from the penalties? Why or why not?