Gleim 1

Question 1

If taxpayer refuses to pay CPA for preparation of his tax return unless CPA changes and reduces tax liability. The CPA can?

Answer 1

May withhold the documents she prepared from the client, if the STATE law permits retention of records in a fee dispute, the practitioner may withhold documents (e.g., a tax return) prepared by the PR actioner, pending payment of a fee with respect to the documents.

Question 2

An attorney who is a member in good standing of a bar in her state. In her practice before the IRS she can ?

Answer 2

Must file a written declaration for each party represented.
not be suspended or disbarred
currently qualified and has been authorized to represent the party

Question 3

What is maintained by Return preparers?

Answer 3

Tax return prepares are required to maintain a complete copy of each return or claim for refund they have filed for 3 years after the return period, or are required to maintain a list of the names, identification numbers, and tax years for whom returns are prepared and to keep this list for 3 years after the return period.

Question 4

For purposes of assessing the penalty “ understatement of liability means”

Answer 4

Any understatement of the tax liability or overstatement of the amount to be refunded or credited.

Question 5

A reportable transaction is one with respect to which additional information is required to be included with a federal income tax return because of the transaction type is of a type, according to an IRS determination, that has

Answer 5

The potential for tax avoidance or evasion