Discussion:Foster v Commissioner TC Memo 2008-22

The current school of thought in my area is that the "qualifies for a new trade or business" refers to a regulatory qualification as in doctors, lawyers, CPA's, HAZMAT, etc, and not due to an arbitrary qualification imposed by an employer. Nor was an analysis of "before and after" job duties thought to be needed.

I also found it interesting that the Tax Court paid much attention to the occupation listed on the tax return, and that line doesn't get much interest by preparers or clients. (Well, I do get a chuckle whenever an "Ass. Manager" return crosses my desk)

Lastly, what do you guys make of the accuracy penalty. If she had only shown to court and claimed the preparer told her to do it, she would have been spared. Do you think the preparer would be liable for any preparer penelties in this case?