IRC of 1986 (TRP) Flashcards

1
Q

List “unreasonable positions.”

A
  • No “substantial authority” (40% chance) for position
  • No “reasonable basis” (20% chance) for disclosed position
  • Not “more likely than not” (50% chance) for tax shelter position.
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2
Q

True or false: A tax return preparer (TRP) can prepare tax forms as a fiduciary.

A

False. An individual who furnishes typing or other mechanical assistance, prepares forms for his or her employer, or prepares a form as a fiduciary is not classified as a tax preparer.

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3
Q

Define “tax return preparer (TRP).”

A

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

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