# Treas. Reg. § 40.6694-4: Extension of period of collection when tax return preparer pays 15 percent of a penalty for understatement of taxpayer's liability and certain other procedural matters.

Source: eCFR as of 2026-10-19 <https://www.ecfr.gov/current/title-26/section-40.6694-4>. Interprets 26 U.S.C. § 6694.

(a) In general. For rules relating to the extension of period of collection when a tax return preparer who prepared return or claim for refund of excise tax of any tax to which this part 40 applies pays 15 percent of a penalty for understatement of taxpayer's liability and procedural matters relating to the investigation, assessment and collection of the penalties under section 6694(a) and (b), the rules under § 1.6694-4 of this chapter will apply. 

(b) Effective/applicability date. This section is applicable to returns and claims for refund filed, and advice provided, after December 31, 2008. 

[T.D. 9436, 73 FR 78455, Dec. 22, 2008]