Question 1

Fiona,a VITA volunteer for her college's tax clinic,is exempted from the Code's tax preparer penalties.

Accepted Answer

A) True 
 B)False

Question 2

Circular 230 allows a tax preparer to:

Accepted Answer

A) Take a position on a tax return that is contrary to a decision of the U.S.Supreme Court. 
B) Operate the "Tax Nerd's Blog" on the Internet. 
C) Charge a $5,000 fee to prepare a Form 1040EZ. 
D) Avoid signing a tax return that is likely to be audited. 
A) Take a position on a tax return that is contrary to a decision of the U.S.Supreme Court. 
B) Operate the "Tax Nerd's Blog" on the Internet. 
C) Charge a $5,000 fee to prepare a Form 1040EZ. 
D) Avoid signing a tax return that is likely to be audited.

Question 3

Which of the following statements is correct as to the conduct of IRS income tax audits?

Accepted Answer

A) Office audits are conducted at the office of the IRS. 
B) The most common type of Federal income tax audit is the field audit. 
C) An office audit typically is used for a business taxpayer. 
D) A correspondence audit usually is concluded after a meeting with the taxpayer at the IRS auditor's office. 
A) Office audits are conducted at the office of the IRS. 
B) The most common type of Federal income tax audit is the field audit. 
C) An office audit typically is used for a business taxpayer. 
D) A correspondence audit usually is concluded after a meeting with the taxpayer at the IRS auditor's office.

Question 4

CPA Jennifer has heard about the AICPA's Statements on Standards for Tax Services.Although Jennifer is a licensed CPA in her state,she is not a member of the AICPA.How do the Statements affect Jennifer's tax practice?

Accepted Answer

The Statements are enforceable standards

Question 5

The general statute of limitations regarding Federal tax returns extends for ____________________ years.It is ____________________ years if a substantial understatement of income is found,and ____________________ years with respect to worthless securities.
or

Accepted Answer

3,6,7 thre

Question 6

The IRS can pay an informant's fee of up to ____________________% of the recovered tax,interest,and penalty amounts.The reward can be as high as ____________________% for information provided by a "whistle blower."
or

Accepted Answer

15,30 fift

Question 7

Which of the following is subject to tax return preparer penalties?

Accepted Answer

A) Lizzie,the firm's administrative assistant,makes copies of returns and assembles the mailings that the client must make to the taxing agencies. 
B) Meredith is the director of Federal taxes for a C corporation. 
C) Sammy is a volunteer who prepares returns at the retirement home under the IRS Tax Counseling for the Elderly program. 
D) Abbie prepares her mother's tax returns for $50 a year.A CPA,Abbie would charge a client $750 for completing a similar return. 
A) Lizzie,the firm's administrative assistant,makes copies of returns and assembles the mailings that the client must make to the taxing agencies. 
B) Meredith is the director of Federal taxes for a C corporation. 
C) Sammy is a volunteer who prepares returns at the retirement home under the IRS Tax Counseling for the Elderly program. 
D) Abbie prepares her mother's tax returns for $50 a year.A CPA,Abbie would charge a client $750 for completing a similar return.

Question 8

After a tax audit,the taxpayer receives the Revenue Agent's Report as part of the "30-day letter."

Accepted Answer

A) True 
 B)False

Question 9

Carole,a CPA,feels that she cannot act as an aggressive advocate for tax clients in today's environment.What aspects of the ethical conduct of a tax practice might have influenced Carole's attitude?

Accepted Answer

Carole might be reacting to the general

Question 10

It is advisable that an IRS audit be conducted at the office of the tax advisor,and not of the client.

Accepted Answer

A) True 
 B)False

Question 11

A taxpayer can be subject to both ____________________ and ____________________ penalties for tax misconduct.
or

Accepted Answer

civil ,cri

Question 12

After the completion of an audit,the taxpayer has ____________________ days to petition the Tax Court to modify the proposed tax due.
or

Accepted Answer

The answer of After the completion of an audit,the taxpayer...

Question 13

Troy Center Ltd.withheld from its employees' paychecks $200,000 in Federal income and Social Security taxes for the Monday,June 30 payroll.It then spent the $200,000 on equipment upgrades,missing altogether the August 2 due date for the tax remittances.How much does Troy now owe the government in taxes and penalties? Ignore interest accruals,and assume that the Treasury can prove that Troy's redirecting of the tax withholdings was willful.

Accepted Answer

Payroll withholdings of $100,000 or more

Question 14

If the taxpayer refuses to pay an assessed tax,the IRS can seize taxpayer property under the ____________________ process.

Accepted Answer

The answer of If the taxpayer refuses to pay an...

Question 15

Minnie,your tax client,has decided to dispute the Revenue Agent's Report.List and discuss at least four of your "next steps" as you prepare to represent Minnie concerning her tax issue within the IRS and in the courts.

Accepted Answer

Carrying out a level of due di

Question 16

Babs filed an amended return in 2013,claiming a refund relative to her 2011 tax computation.When the IRS approves the amended return,it will pay Babs interest with respect to the overpayment.

Accepted Answer

A) True 
 B)False

Question 17

Certain individuals are more likely than others to have the Form 1040 audited by the IRS.List at least five factors that may increase above the national norms one's chances of audit.

Accepted Answer

These circumstances

Question 18

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return.The statute of limitations for Keepert's return is six years.

Accepted Answer

A) True 
 B)False

Question 19

An individual is not subject to an underpayment penalty until more than $____________________ is due and unpaid through estimated taxes.
or

Accepted Answer

The answer of An individual is not subject to an...

Question 20

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Accepted Answer

The answer of The accuracy-related penalties typically relate to ____________________on...

Fiona,a VITA volunteer for her college's tax clinic,is exempted from the Code's tax preparer penalties.

Circular 230 allows a tax preparer to:

Which of the following statements is correct as to the conduct of IRS income tax audits?

CPA Jennifer has heard about the AICPA's Statements on Standards for Tax Services.Although Jennifer is a licensed CPA in her state,she is not a member of the AICPA.How do the Statements affect Jennifer's tax practice?

The general statute of limitations regarding Federal tax returns extends for years.It is years if a substantial understatement of income is found,and years with respect to worthless securities. or

The IRS can pay an informant's fee of up to % of the recovered tax,interest,and penalty amounts.The reward can be as high as % for information provided by a "whistle blower." or

Which of the following is subject to tax return preparer penalties?

After a tax audit,the taxpayer receives the Revenue Agent's Report as part of the "30-day letter."

Carole,a CPA,feels that she cannot act as an aggressive advocate for tax clients in today's environment.What aspects of the ethical conduct of a tax practice might have influenced Carole's attitude?

It is advisable that an IRS audit be conducted at the office of the tax advisor,and not of the client.

A taxpayer can be subject to both and penalties for tax misconduct. or

After the completion of an audit,the taxpayer has ____________________ days to petition the Tax Court to modify the proposed tax due. or

If the taxpayer refuses to pay an assessed tax,the IRS can seize taxpayer property under the ____________________ process.

Minnie,your tax client,has decided to dispute the Revenue Agent's Report.List and discuss at least four of your "next steps" as you prepare to represent Minnie concerning her tax issue within the IRS and in the courts.

Babs filed an amended return in 2013,claiming a refund relative to her 2011 tax computation.When the IRS approves the amended return,it will pay Babs interest with respect to the overpayment.

Certain individuals are more likely than others to have the Form 1040 audited by the IRS.List at least five factors that may increase above the national norms one's chances of audit.

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return.The statute of limitations for Keepert's return is six years.

An individual is not subject to an underpayment penalty until more than $____________________ is due and unpaid through estimated taxes. or

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 17: Tax Practice and Ethics

Fiona,a VITA volunteer for her college's tax clinic,is exempted from the Code's tax preparer penalties.

Circular 230 allows a tax preparer to:

Which of the following statements is correct as to the conduct of IRS income tax audits?

CPA Jennifer has heard about the AICPA's Statements on Standards for Tax Services.Although Jennifer is a licensed CPA in her state,she is not a member of the AICPA.How do the Statements affect Jennifer's tax practice?

The general statute of limitations regarding Federal tax returns extends for ____________________ years.It is ____________________ years if a substantial understatement of income is found,and ____________________ years with respect to worthless securities. or

The IRS can pay an informant's fee of up to ____________________% of the recovered tax,interest,and penalty amounts.The reward can be as high as ____________________% for information provided by a "whistle blower." or

Which of the following is subject to tax return preparer penalties?

After a tax audit,the taxpayer receives the Revenue Agent's Report as part of the "30-day letter."

Carole,a CPA,feels that she cannot act as an aggressive advocate for tax clients in today's environment.What aspects of the ethical conduct of a tax practice might have influenced Carole's attitude?

It is advisable that an IRS audit be conducted at the office of the tax advisor,and not of the client.

A taxpayer can be subject to both ____________________ and ____________________ penalties for tax misconduct. or

After the completion of an audit,the taxpayer has ____________________ days to petition the Tax Court to modify the proposed tax due. or

If the taxpayer refuses to pay an assessed tax,the IRS can seize taxpayer property under the ____________________ process.

Minnie,your tax client,has decided to dispute the Revenue Agent's Report.List and discuss at least four of your "next steps" as you prepare to represent Minnie concerning her tax issue within the IRS and in the courts.

Babs filed an amended return in 2013,claiming a refund relative to her 2011 tax computation.When the IRS approves the amended return,it will pay Babs interest with respect to the overpayment.

Certain individuals are more likely than others to have the Form 1040 audited by the IRS.List at least five factors that may increase above the national norms one's chances of audit.

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return.The statute of limitations for Keepert's return is six years.

An individual is not subject to an underpayment penalty until more than $____________________ is due and unpaid through estimated taxes. or

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

The general statute of limitations regarding Federal tax returns extends for years.It is years if a substantial understatement of income is found,and years with respect to worthless securities. or

The IRS can pay an informant's fee of up to % of the recovered tax,interest,and penalty amounts.The reward can be as high as % for information provided by a "whistle blower." or

A taxpayer can be subject to both and penalties for tax misconduct. or