Tax Return Preparer Code

Question 1

What are the requirements for a TRP?

Answer 1

1. Are paid
2. To prepare or retain employees to prepare
3. A substantial portion
4. of any federal tax return or refund claim

Question 2

What is the substantial portion of TRP?

Answer 2

1. less than 10K or less than 400k if its less than 20% of gross income

Question 3

Who is not a TRP?

Answer 3

1. Furnishing typing or reproducing
2. Prepare return as a fiduciary
3. Prepare taxes as part of Volunteer Income Tax Assistance
4. Prepare taxes for no compensation
5. Prepare return for employee

Question 4

What percentage is an undisclosed position for “unreasonable”

Answer 4

Less than 40%

Question 5

What percentage is an disclosed position for “no reasonable basis”

Answer 5

< 20%

Question 6

What can section 6695 punish TRP for?

Answer 6

1. failing to furnish copy of return to taxpayer
2. failure to sign return and show own identity
3. no identifying number to IRS
4. fail to keep copy of the return
5. failure to correct info
6. negotiation of check
7. eligibility of income tax credit or child tax credit

Question 7

How are TRP liable?

Answer 7

1. Aid
2. known about the shit
3. know if a document is used, it would be used for understatement of tax