Ethics And Responsibilities In Tax

Question 0

You can delay fulfilling an IRs request for records and info under circular 230 if

Answer 0

You investigated and believe in good faith the info is privileged.

Question 1

When there is a material error in a return you should promptly inform

Answer 1

Your client

Question 2

Best practice under circular 230 is

Answer 2

Establishing relevant facts, evaluating reasonableness of assumptions and representations and arriving at a conclusion supported by law and facts in tax.

Question 3

Retaining client records is ok under

Answer 3

Circular 230

Question 4

Services rendered in connection with the IRS examination or challenge of original tax return or amended tax return filed within 120 days

Claim is solely in connection with statutory interest or penalties

Representing the client in judicial proceedings

Answer 4

A contingent fee may be charged

Question 5

Frivolous claims should never be taken by

Answer 5

The tax practitioner

Question 6

Claims that have a realistic possibility of being sustained

Answer 6

May be taken

Question 7

Conditions to use estimates are?

Answer 7

It is impracticable to obtain exact data

The estimates are reasonable, given known facts

The estimates do not imply greater accuracy than truly exists

Question 8

The tax practitioner is only required to report

Answer 8

Material errors

Question 9

Realistic possibility of being sustained is

Answer 9

33-50%

Question 10

Seats no. 7 does not require written advice for

Answer 10

Complicated matters.

Question 11

Under ssts 2 CPA may omit an answer

Answer 11

Under reasonable grounds

Question 12

The sophistication of the client must be considered when deciding

Answer 12

Oral or written advice

Question 13

Attempts to claim a deduction that was disallowed can be used

Answer 13

If a leading tax authority publish an article arguing persuasively. A court has issued a favorable opinion

Question 14

A CPA should warn a taxpayer about penalty risks when the risk is

Answer 14

More likely than not to be sustained

Question 15

Info not readily available
Genuine uncertainty exists
The answer is voluminous

Answer 15

Reasonable grounds to omit an answer

Question 16

Under tax law. The taxpayer must meet reasonable basis and substantial authority to not

Answer 16

Disclose a tax position

Question 17

People are TRPs if

Answer 17

They are paid
Prepare or retain employees to prepare
A substantial portion
Of any fed tax return

Question 18

A trustee who prepares a tax return for his trust is not

Answer 18

A tax return preparer TRP

Question 19

For a tax shelter the IRS adopted a

Answer 19

More likely than not (over 50%) standard

Question 20

A deduction less than $10,000 or $40,000 is not a

Answer 20

Substantial portion

Question 21

Understatement of tax liability is unreasonable if there is no substantial authority

Answer 21

(Less than 40% chance of bring sustained)

Question 22

Understatement of tax liability is Unreasonable if disclosed yet no reasonable basis.

Answer 22

Less than 20% chance of being sustained

Question 23

Section 6695 penalties

Answer 23

Failure to furnish copy of return to taxpayer
Failure to sign return and show own identity
Failure to furnish preparers identifying number to irs
Failure to keep copy of return

Question 24

6700 punished promotion of abusive tax shelters when

Answer 24

Knowingly or reckless make false statement or
Engage in gross overvaluation of property and
Organize or participate in sell of shelter

Question 25

6701 is aiding and abetting understatement of tax

Answer 25

Liability

Question 26

If there are no written standards

Answer 26

Realistic possibility 33%

Reasonable basis 20-33% and disclosed

Question 27

Authority of tax provisions under Aicpa are

Answer 27

Applicable statute(constructive)
Articles and treaties (well reasoned)
Pronoun cements

Question 28

Grounds for omission

Answer 28

Not readily available
Uncertainty to meaning of question
Voluminous and will b supplied upon examination

Question 29

jeep is

Answer 29

Joint ethics enforcement program

Divides ethic complaints and investigations between AICPA and state societies

Question 30

Expulsion from the AICPA without hearing is

Answer 30

Committing a felony
Failing to file tax return
Filing fraudulent tax return on own or clients behalf
Aiding in preparing a fraudulent tax return for a client