4-Internal Revenue Code and Regulations Related to Tax Return Preparers

Question 1

Which of the following will not get CPA Sandy in trouble with the IRS?

Answer 1

Failure to furnish her preparer’s identifying number to her clients.

Under current rules, Sandy must furnish the preparer’s identifying number to the IRS but not to her clients.

Question 2

Tax return preparers can be subject to penalties under the Internal Revenue Code for failure to do any of the following except

Answer 2

Disclose a conflict of interest.

The I.R.C. contains no penalty for failing to disclose a conflict of interest when preparing a tax return.