Exam 1: Introduction Totax Practice and Ethics

Tax evasion is:

The ABA Model Code of Professional Responsibility has the force of law and covers all attorneys practicing in the United States.

Tax research is required only for tax planning, not preparing returns.

Tax litigation is a process of:

In which of the following situations would a CPA be engaged in the unauthorized practice of law?

Which of the following statements is CORRECT regarding the unauthorized practice of law?

The six principles of professional conduct under the AICPA Code include:

A CPA can rely without verification on information given tothe CPA by a taxpayer unless the information appears tobe incorrect.

Statements on Standards for Tax Services (SSTS)contain advisory guidelines for:

Circular 230 bans tax practitioners from giving written advice on a federal tax issue based on the likelihood of an audit.

What standard must tax practitioners meet under Section 6694 (preparer penalties)of the Internal Revenue Code with respect toundisclosed positions taken on tax returns?

Under Section 10.3, Subpart A, of Circular 230, the following individuals may practice before the IRS EXCEPT:

Tax compliance is the process of:

The three categories of modern tax practice include tax planning, tax compliance, and tax research.

Who may represent a taxpayer before the IRS in cases which gobeyond the examination of the return?

State Boards of Accountancy are the organizations with responsibility tolicense public accountants in each state.

The Statements on Standards for Tax Services are:

Taxation and tax practice are comprised of the interaction of several disciplines. What are those disciplines? Briefly discuss their impact on the tax system.

Circular 230 includes rules on all of the following topics EXCEPT:

Tax planning has a higher likelihood of success when a tax practitioner is dealing with an open transaction instead of a closed transaction.