Practices and Procedures · Rules and penalties

Furnishing a copy of a return to a taxpayer

The obligation to hand the taxpayer a copy of their own return sounds administrative and is not. It is fixed to a moment — not later than the time the return is presented for signature — and for an electronically filed return the regulation defines “complete copy” in a way that catches firms who hand over a summary and file something larger.

The rule

The duty and its timing. A tax return preparer must furnish a completed copy of the return or claim for refund to the taxpayer not later than the time the return or claim is presented for the taxpayer’s signature (IRC § 6107(a)). The regulation puts the duty on the signing tax return preparer and adds that the preparer may, at its option, request a receipt or other evidence from the taxpayer sufficient to show the requirement was met (Reg. § 1.6107-1(a)(1)).

What a complete copy is. The copy must be provided in any media, including electronic media, acceptable to both the taxpayer and the preparer (Reg. § 1.6107-1(a)(2)). For an electronically filed return, a complete copy is the electronic portion of the return as filed with the IRS — all schedules, forms, PDF attachments and jurats. It must include everything submitted to the IRS so the taxpayer can determine what was filed. It need not contain the preparer’s identifying number, and it may sit on a replica of an official form or on an unofficial form, provided that on an unofficial form the data entries reference the line numbers or descriptions of an official form.

The penalty. Failing to comply with § 6107(a) costs $65 per return or claim, capped at $33,000^TY2026 (IRC § 6695(a)), unless the failure is due to reasonable cause and not due to willful neglect. The cap under this subsection runs to documents filed during any calendar year.

Current figures

How it works in practice

The timing rule does most of the work. The copy is due at or before the moment the return goes to the taxpayer for signature, which for a paper return means the copy is handed over in the same meeting, and for an e-filed return means it goes with the Form 8879. A firm that files first and sends the client a copy afterwards has failed § 6107(a) on every return, however promptly the copy arrives.

The e-file definition is where practice most often diverges from the rule. What the taxpayer must receive is the electronic portion as transmitted, including attachments and jurats — not a printed 1040 facsimile that omits the PDF attachments, and not a client-facing summary. The test in the regulation is functional: the copy must let the taxpayer determine what schedules, forms, electronic files and supporting materials were filed. If the client cannot tell from the copy what went to the IRS, the copy is not complete.

Two permissive details are worth knowing because they are frequently assumed to be the opposite. Electronic delivery is allowed where both sides accept it — email or a portal is fine, and nothing requires paper. And the preparer’s PTIN may be omitted from the taxpayer’s copy, which surprises practitioners who assume the client copy must mirror the filed return in every respect.

The reasonable cause defence in § 6695(a) is real but narrow: it requires cause arising despite ordinary care and prudence, and the IRS will ask for a written statement substantiating it. A software or workflow failure that recurs is not ordinary care and prudence; it is a systemic failure, and the penalty applies per return.

How this has changed

The current regulation comes from T.D. 9436 (73 FR 78437, 22 December 2008) and applies to returns and claims filed after 31 December 2008. That is the amendment that wrote the electronic filing rules into § 1.6107-1(a)(2) — the definition of a complete copy for an e-filed return, the “any media acceptable to both” rule, and the permission to omit the preparer’s identifying number. The § 6695(a) amount, flat at fifty dollars when enacted, is now indexed under § 6695(h) and rises each year, so any figure quoted without a filing year should be checked against the current revenue procedure.

Exam focus

Know that the trigger is presentation for signature and not filing. Know what makes a copy complete for an electronically filed return — the electronic portion as transmitted, including schedules, forms, PDF attachments and jurats. Know that electronic delivery is permitted with both parties’ acceptance, and that the preparer’s identifying number may be omitted from the client’s copy. Keep § 6107(a) and § 6107(b) distinct: the copy to the taxpayer, and the preparer’s own retention. Expect the reasonable cause defence to appear, and remember that the IRS requires it in writing.

Check yourself

1. A preparer must furnish the taxpayer a completed copy of the return: (A) Within 30 days of filing (B) Not later than the time the return is presented for the taxpayer’s signature (C) Before the return’s due date (D) On request only Answer: B. IRC § 6107(a).

2. For an electronically filed return, a complete copy consists of: (A) A printed Form 1040 facsimile (B) The electronic portion filed with the IRS, including all schedules, forms, PDF attachments and jurats (C) A client summary showing the refund or balance (D) Whatever the taxpayer requests Answer: B. Reg. § 1.6107-1(a)(2).

3. May the copy given to the taxpayer omit the preparer’s identifying number? (A) No, it must mirror the filed return exactly (B) Yes, the regulation says so expressly (C) Only for paper returns (D) Only with the taxpayer’s written consent Answer: B.

4. A preparer delivers all client copies by secure portal without asking. A client who wanted paper complains. The preparer: (A) Is compliant, electronic delivery being permitted (B) Is not compliant as to that client, since the media must be acceptable to both parties (C) Is not compliant as to any client (D) Must deliver on paper in every case Answer: B.

5. The § 6695(a) penalty does not apply where the failure is: (A) Unintentional (B) Due to reasonable cause and not due to willful neglect, substantiated in writing (C) Corrected within 30 days (D) Caused by software Answer: B. Reasonable cause is cause arising despite ordinary care and prudence.