Question 1

For CPAs solely engaged in professional tax practice,abiding by the Statements of Standards on Tax Services (SSTS)is:

Accepted Answer

A)  Mandatory because it is the only set of professional conduct rules that applies to them 
B)  Desirable, but not mandatory 
C)  Mandatory, when acting as a tax return preparer, but not as a tax planner 
D)  Mandatory, even if they do not represent taxpayers in IRS audits or administrative proceedings 
A)  Mandatory because it is the only set of professional conduct rules that applies to them 
B)  Desirable, but not mandatory 
C)  Mandatory, when acting as a tax return preparer, but not as a tax planner 
D)  Mandatory, even if they do not represent taxpayers in IRS audits or administrative proceedings

Question 2

The use of estimates on a tax return should be prominently disclosed on the face of the tax return if:

Accepted Answer

A)  The estimates involved deductions for meals and entertainment 
B)  The estimates involved business-related automobile usage 
C)  The taxpayer was unavailable to participate in the tax return preparation process due to illness or death 
D)  The estimates result in a change in a taxpayer's tax liability by "a sum equal to or greater than $1,000" 
A)  The estimates involved deductions for meals and entertainment 
B)  The estimates involved business-related automobile usage 
C)  The taxpayer was unavailable to participate in the tax return preparation process due to illness or death 
D)  The estimates result in a change in a taxpayer's tax liability by "a sum equal to or greater than $1,000"

Question 3

A tax return preparer generally has a professional duty to:

Accepted Answer

A)  Review, but not verify, all documents supporting a client's reported deductions 
B)  Review and verify all documents supporting a client's reported deductions if the deduction amounts are material 
C)  Review and verify all documents supporting a client's reported deductions, regardless of whether the deduction amounts are material or immaterial 
D)  Neither review nor verify the documents supporting a client's reported deductions 
A)  Review, but not verify, all documents supporting a client's reported deductions 
B)  Review and verify all documents supporting a client's reported deductions if the deduction amounts are material 
C)  Review and verify all documents supporting a client's reported deductions, regardless of whether the deduction amounts are material or immaterial 
D)  Neither review nor verify the documents supporting a client's reported deductions

Question 4

If a tax return preparer informs a taxpayer that an error exists in a tax return previously filed by the taxpayer,the taxpayer has:

Accepted Answer

A)  A duty to correct the tax return under all circumstances 
B)  A duty to correct the tax return only if the error was intentional 
C)  A duty to correct the tax return only if the error was material 
D)  No duty to correct the tax return 
A)  A duty to correct the tax return under all circumstances 
B)  A duty to correct the tax return only if the error was intentional 
C)  A duty to correct the tax return only if the error was material 
D)  No duty to correct the tax return

Question 5

A taxpayer wishes to assert a tax position concerning the deductibility of mortgage interest on a home that is partially used for business and partially used as a vacation home.This tax position satisfies the "substantial authority" standard.This taxpayer ordinarily may assert this tax position:

Accepted Answer

A)  Only if advance written permission is obtained from the IRS 
B)  Only if the position is prominently disclosed on the face of the taxpayer's tax return 
C)  Only if the position is prominently disclosed in a written statement attached to the front of the taxpayer's tax return 
D)  Without special conditions or disclosures 
A)  Only if advance written permission is obtained from the IRS 
B)  Only if the position is prominently disclosed on the face of the taxpayer's tax return 
C)  Only if the position is prominently disclosed in a written statement attached to the front of the taxpayer's tax return 
D)  Without special conditions or disclosures

Question 6

What are a tax return preparer's duties,if any,upon discovering an error in a tax return that previously was submitted by a client to a taxing authority?

Accepted Answer

A tax return preparer who discovers an e

Question 7

Your client claimed seven children as dependency exemptions on his tax return last year.You now have learned that the client only has three children,of which only two qualify as dependents.You have advised your client to amend his prior-year tax return to correct for this error,but your client has refused to do so.However,your client has agreed to only claim the proper number of dependency exemptions during the current and future years.You:

Accepted Answer

A)  Have a duty to resign and a duty to inform your client about the tax penalties associated with the commission of tax fraud 
B)  Have a duty to inform the IRS about the errors in your client's prior-year return and may do so anonymously 
C)  Have a duty to inform your client about tax fraud penalties, but do not have a duty to resign 
D)  Have a duty to inform your client to contact an attorney to discuss the consequences of committing tax fraud, and should consider resigning 
A)  Have a duty to resign and a duty to inform your client about the tax penalties associated with the commission of tax fraud 
B)  Have a duty to inform the IRS about the errors in your client's prior-year return and may do so anonymously 
C)  Have a duty to inform your client about tax fraud penalties, but do not have a duty to resign 
D)  Have a duty to inform your client to contact an attorney to discuss the consequences of committing tax fraud, and should consider resigning

Question 8

Based on the advice of a tax return preparer,a taxpayer recently reported the market value of an unusual property distribution received from a real estate investment trust in her gross income.After the tax return was filed,the U.S.Tax Court ruled that similar kinds of distributions are not includible in gross income.The tax return preparer has:

Accepted Answer

A)  A duty to have retained the taxpayer's contact information and a duty to inform the client of this legal ruling 
B)  A duty to inform the client of this legal ruling only if the amounts at issue are material to the taxpayer, measured as a percentage of the taxpayer's reported gross income 
C)  A duty to inform the client of this legal ruling only if the amounts at issue are material to the taxpayer, measured as a percentage of the taxpayer's net worth 
D)  No duty to contact the taxpayer 
A)  A duty to have retained the taxpayer's contact information and a duty to inform the client of this legal ruling 
B)  A duty to inform the client of this legal ruling only if the amounts at issue are material to the taxpayer, measured as a percentage of the taxpayer's reported gross income 
C)  A duty to inform the client of this legal ruling only if the amounts at issue are material to the taxpayer, measured as a percentage of the taxpayer's net worth 
D)  No duty to contact the taxpayer

Question 9

Should a tax return preparer solely be an advocate for a client?

Accepted Answer

A tax return preparer should balance the

Question 10

In what circumstances may a tax return preparer rely upon information furnished by a client?

Accepted Answer

A tax return preparer may generally rely

Question 11

Should tax return preparers have a duty to verify the information provided to them by clients? Why or why not?

Accepted Answer

Yes, tax return preparers should have a

Question 12

The "reasonable possibility of success" standard commonly is associated with "1 out of 3" odds of success.These odds refer to the likelihood of success:

Accepted Answer

A)  After the IRS has detected and challenged an asserted tax position 
B)  Taking into account the fact that the IRS may not detect a questionable tax position 
C)  Taking into account the fact that the IRS may detect a questionable tax position, but not challenge it due to limited government resources 
D)  Of the taxpayer achieving the beneficial tax savings desired from the asserted position 
A)  After the IRS has detected and challenged an asserted tax position 
B)  Taking into account the fact that the IRS may not detect a questionable tax position 
C)  Taking into account the fact that the IRS may detect a questionable tax position, but not challenge it due to limited government resources 
D)  Of the taxpayer achieving the beneficial tax savings desired from the asserted position

Question 13

The "Cohan Rule" states that:

Accepted Answer

A)  A taxpayer is not liable for tax liability that arose due to a tax return preparer's negligence 
B)  A taxpayer who incurred legitimate tax deductions may claim reasonable estimates of these deductions on her tax return 
C)  A taxpayer who furnishes incomplete information to a tax return preparer may claim estimated deductions only if the tax return preparer independently determines the amounts of these estimates in good faith 
D)  A tax return preparer who claims estimated deductions on a client's tax return is legally liable to the government for any tax liability that arises if the deductions are illegitimate and the taxpayer is unable or unwilling to pay the resulting increase in tax liability 
A)  A taxpayer is not liable for tax liability that arose due to a tax return preparer's negligence 
B)  A taxpayer who incurred legitimate tax deductions may claim reasonable estimates of these deductions on her tax return 
C)  A taxpayer who furnishes incomplete information to a tax return preparer may claim estimated deductions only if the tax return preparer independently determines the amounts of these estimates in good faith 
D)  A tax return preparer who claims estimated deductions on a client's tax return is legally liable to the government for any tax liability that arises if the deductions are illegitimate and the taxpayer is unable or unwilling to pay the resulting increase in tax liability

Question 14

A taxpayer wishes to assert a tax position concerning the deductibility of a "special-purpose uniform" that she wears to work and never wears outside the workplace.The tax position satisfies the "reasonable possibility of success" standard.This taxpayer ordinarily may:

Accepted Answer

A)  Not assert this tax position under any circumstance 
B)  Assert this tax position under all circumstances 
C)  Assert this tax position only if it also satisfies the "not frivolous" standard 
D)  Only if the tax position is prominently disclosed to the IRS 
A)  Not assert this tax position under any circumstance 
B)  Assert this tax position under all circumstances 
C)  Assert this tax position only if it also satisfies the "not frivolous" standard 
D)  Only if the tax position is prominently disclosed to the IRS

Question 15

The use of estimates on a tax return generally is:

Accepted Answer

A)  Prohibited 
B)  Allowed, but must be disclosed if the amounts involved are material 
C)  Allowed, but must be disclosed if most, or all, of the line items on the tax return were estimated 
D)  Allowed only if documents were destroyed by a natural disaster or computer failure 
A)  Prohibited 
B)  Allowed, but must be disclosed if the amounts involved are material 
C)  Allowed, but must be disclosed if most, or all, of the line items on the tax return were estimated 
D)  Allowed only if documents were destroyed by a natural disaster or computer failure

Question 16

What are some of the ethical duties that apply to tax return preparers?

Accepted Answer

Tax return preparers have a significant

Question 17

What are some of the ethical duties that apply to accounting professionals engaged in tax planning?

Accepted Answer

Accounting professionals engaged in tax

For CPAs solely engaged in professional tax practice,abiding by the Statements of Standards on Tax Services (SSTS)is:

The use of estimates on a tax return should be prominently disclosed on the face of the tax return if:

A tax return preparer generally has a professional duty to:

If a tax return preparer informs a taxpayer that an error exists in a tax return previously filed by the taxpayer,the taxpayer has:

A taxpayer wishes to assert a tax position concerning the deductibility of mortgage interest on a home that is partially used for business and partially used as a vacation home.This tax position satisfies the "substantial authority" standard.This taxpayer ordinarily may assert this tax position:

What are a tax return preparer's duties,if any,upon discovering an error in a tax return that previously was submitted by a client to a taxing authority?

Should a tax return preparer solely be an advocate for a client?

In what circumstances may a tax return preparer rely upon information furnished by a client?

Should tax return preparers have a duty to verify the information provided to them by clients? Why or why not?

The "reasonable possibility of success" standard commonly is associated with "1 out of 3" odds of success.These odds refer to the likelihood of success:

The "Cohan Rule" states that:

A taxpayer wishes to assert a tax position concerning the deductibility of a "special-purpose uniform" that she wears to work and never wears outside the workplace.The tax position satisfies the "reasonable possibility of success" standard.This taxpayer ordinarily may:

The use of estimates on a tax return generally is:

What are some of the ethical duties that apply to tax return preparers?

What are some of the ethical duties that apply to accounting professionals engaged in tax planning?

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Greed,corruption,and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

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Exam 14: Duties of Tax Professionals

For CPAs solely engaged in professional tax practice,abiding by the Statements of Standards on Tax Services (SSTS)is:

The use of estimates on a tax return should be prominently disclosed on the face of the tax return if:

A tax return preparer generally has a professional duty to:

If a tax return preparer informs a taxpayer that an error exists in a tax return previously filed by the taxpayer,the taxpayer has:

A taxpayer wishes to assert a tax position concerning the deductibility of mortgage interest on a home that is partially used for business and partially used as a vacation home.This tax position satisfies the "substantial authority" standard.This taxpayer ordinarily may assert this tax position:

What are a tax return preparer's duties,if any,upon discovering an error in a tax return that previously was submitted by a client to a taxing authority?

Should a tax return preparer solely be an advocate for a client?

In what circumstances may a tax return preparer rely upon information furnished by a client?

Should tax return preparers have a duty to verify the information provided to them by clients? Why or why not?

The "reasonable possibility of success" standard commonly is associated with "1 out of 3" odds of success.These odds refer to the likelihood of success:

The "Cohan Rule" states that:

A taxpayer wishes to assert a tax position concerning the deductibility of a "special-purpose uniform" that she wears to work and never wears outside the workplace.The tax position satisfies the "reasonable possibility of success" standard.This taxpayer ordinarily may:

The use of estimates on a tax return generally is:

What are some of the ethical duties that apply to tax return preparers?

What are some of the ethical duties that apply to accounting professionals engaged in tax planning?

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Greed,corruption,and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

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