The National Association of Bond Lawyers is urging the Treasury Department to modify proposed regulations that would subject tax return preparers to possible monetary penalties so that they do not include preparers of the annual information returns filed by municipal bond issuers.

If Treasury does not want to exclude the bond forms from the rules altogether, it should put the forms in a category where penalties would be imposed only for "reckless or intentional disregard of rules or regulations," NABL told the the department in a June 26 letter. Bond lawyers sometimes assist issuers in preparing the forms.

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