FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 26: Tax Practice and Ethics

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

An IRS letter ruling might determine that an employee's compensation is unreasonable in amount.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Short Answer

Review LaterAdd Note

Review Later

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

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

In the case of bad debts and worthless securities, the statute of limitations on claims for refund is three years.

After the completion of an audit, the taxpayer has 90 days to petition the Court to modify the proposed tax due.

Fiona, a VITA volunteer for her college's tax clinic, is not a tax preparer as defined by the Code. Thus, Fiona is exempted from the Code's tax preparer penalties.

The IRS is one of the largest Federal agencies, employing almost people throughout the year.

An individual who claims a deduction for qualified business income under § 199A:

A taxpayer penalty may be waived if there is shown to be reasonable cause for the misstatement on the tax return. The courts have applied this standard strictly. List three or more assertions for a waiver of a taxpayer penalty that courts have found not to constitute reasonable cause. Example: Ignorance of the tax law.

CPA Norma and her client Colin hold a privilege of confidentiality from the IRS as to their tax planning discussions about completing Colin's tax returns. The IRS cannot successfully subpoena records concerning these discussions.

During any month in which both the failure-to-file and failure-to-pay penalties apply, both penalties are paid in full.

The Statements on Standards for Tax Services (SSTS) apply to members of the AICPA, a state bar association, and all enrolled agents.

The privilege of confidentiality applies to a CPA tax preparer concerning the client's information relative to:

The Treasury document regulating the professional conduct of tax return preparers is the Regulation known as _________________________.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Negligence in filing a return.

Young-Eagle files her 2018 Form 1040 on July 1, 2019. The Federal tax statute of limitations for this return expires on:

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Filing an improper refund claim.

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

Some taxpayers must make quarterly estimated payments of their income tax. Describe these requirements. In your answer, include both corporate and noncorporate taxpayers.

Specific factors that are used in selecting tax returns for audit and the weights for such factors are not released to the public. Summarize the public information about tax audit selection; how might a tax return's chances of audit increase above national norms?

A CPA can take a tax return position for a client that is contrary to current IRS interpretations of the law.