STUDY REMINDERS *

Question 1

Treasury Circular 230 Attorneys & CPAs MUST file written doc to authorize rep taxpayer T or F?

Answer 1

True, Attorneys & CPAs must have written doc to authorize

Question 2

Contingent Fee

Answer 2

Only allowed if: Examination or challenge to original rtn or amended w 120 days of written notice or judicial proceedings

Question 3

Treasury circular 230 IRS has final say on CPAs for tax T/F?

Answer 3

True, IRS has final say on CPAs for tax

Question 4

Rule 501

Answer 4

Practitioners MUST request of client, promptly return any &I all records or client

Question 5

Rule 502.01 (AICPA Ethics)

Answer 5

Practitioners have advertising & soliciting restrictions (false & misleading or deceptive)

Question 6

Penalties

Answer 6

Must inform client of reasonably likely penalties based on return position

Question 7

Circular 230 - 10.34 (d)

Answer 7

Can rely on info from client except when it appears: Incorrect, inconsistent, or incomplete on face

Question 8

Objective / independence in Tax

Answer 8

Objective (REQ) Independent (Not REQ)

Question 9

Statements on standards of Tax Services (SSTS)

Answer 9

AICPA - creates standards for tax services Advice can be oral or written

Question 10

IRC of 1986 (liability of preparer)

Answer 10

Civil and criminal penalties for compensated preparer for negligent or intentionally understating taxpayer liab

Question 11

IRC of 1986 (Liab of Preparer)

Answer 11

Liab 1- $1000 or 50% penalty on income derived liab 2 - $5000 or 50% penalty if preparer willfully or recklessly understated liab

Question 12

State Boards of Accountancy (CPA License)

Answer 12

Has ability to revoke and issue CPA License Complaints - Vary State by State

Question 13

PCAOB (Public Accounting Oversight Board) Consists of…

Answer 13

5 year terms and 5 members Sox > established PCAOB > Overseen by SEC

Question 14

PCAOB Reviews / Violations Criteria

Answer 14

• Annual review - if greater than 100 issuers - 3 Year review all others - Violations - Sec Exch. Act of 1934

Question 15

NASBA Credentials/CPE

Answer 15

• Compiles credential info (NASBA tools) - CPE Standards

Question 16

AICPA - Public Trust

Answer 16

AICPA honors “public trust”

Question 17

GAAS - Exceeding GAAS on Audit

Answer 17

Considered Impaired independence if doing work that exceeds GAAS

Question 19

IRS has how many years to collect from taxpayer?

Answer 19

10 Years

Question 20

UNICAP - Uniform Capitalization

Answer 20

UNICAP - for small resellers not exceeding $10 mill over 3 years