Part 3 Section 2 Circular 230 Flashcards
What does the Principal of a CPA firm do if he can’t physically sign the return . Q 1 GD section 2
He can indicate “Unable to sign” as the signature
Is a fiduciary considered a tax preparer? Q 8 GD (Google Docs) section 2
No. Under Section 770 (a)(36) a tax return preparer is any person who prepares for compensation, or employes other to prepare for compensation, any return or refund of tax imposed by the IRC. A fiduciary is specifically escluded from qualifying as a tax return preparer
How long must information returns of income tax return preparers must be maintained for tax preparers? What are information returns
Information returns are like w-2, 1099s etc. A person who employs one or more tax return preparers to prepare a return or claim for refund must file a return setting fort the name, identifying number, and place of work of each income tax return preparer. Commissioner must be able to inspect for the 3 year period following the close of the return period to which that record relates. The return period means the 12-month period beginning July 1 of each year.
Section 6060 Reporting requirements for tax return preparers, applies to any person who employs how many people?
The term “return period” means the month period beginning when?
Q 14
1 person or more
Begins July 1st of each year
What is the amount that a deduction is considered substantial for someone to be called a tax preparer? Q 14
$10,000
What level of evidence must a tax return preparer have in order to take a position?
What are the other levels? (Where is the description?) q 26
Substantial authority -
Preponderance of the evidence
Clear and convincing Evidence
Certainty
Which entities must file an employer’s informational return reporting the name, identifying number, and pricnipal place of work for each tax return PREPARER?
Corporation with employees who complete tax returns,
Partners in a partnership where only partners prepare returns
Sole proprietor who prepares returns with no employees
Q 25 Section 2
All must report these details
Who can free file? Who cannot
What is the income threshold and what forms must be used if the income is above the threshold.
Q26
Any individual can free file whose income is below $79,000. Individuals above $79,000 must use free File Fillable Forms.
CANNOT: Any taxable entity, Employees of federal government cannot FREE FILE.
By what date must a tax return preparer furnsih a copy of the original return to a taxpayer
q 27
By the date the tax return is presented for the SIGNATURE of the taxpayer. Under title 26
