Internal Revenue Code of 1986

Question 1

List unreasonable Positions

Answer 1

1. ) No “substantial authority” (40% chance) for position
2. ) No “Reasonable Basis” (20% chance) for disclosed position
3. ) Not “more likely than not” (50% chance) for tax shelter position

Question 2

Define “Tax Return Preparer (TRP)”

Answer 2

A person who is paid to prepare or retain employees to prepare a substantial portion of any federal tax return or refund claim

Question 3

What are the disclosure provisions under Section 6695 that preparers can be punished for?

Answer 3

1. ) Failure to furnish copy of return to taxpayer
2. ) Failure to sign return and show own identity
3. ) Failure to furnish PTIN to the IRS
4. ) Failure to keep copy of return