Vocab

Question 1

Diligence

Answer 1

being aware of things that are occurring with the TP. Must be exercised in preparing and in assisting in preparing, approving, and filing returns, documents, and other papers relating to IRS matters

Question 2

Negligence

Answer 2

Includes any failure to make a reasonable attempt to (A) comply with the provisions of the internal revenue laws or (B) exercise ordinary and reasonable care in the preparation of a return

Question 3

Issuer

Answer 3

The individual or business that initially offers a security to sale to the public

Question 4

Underwriter

Answer 4

Any person who participates in the original offering of securities from the issuer with the intention of distributing them

Question 5

Dealer

Answer 5

Any person who is engaged in the business of offering, selling, buying, dealing, or otherwise trading securities issued by another

Question 6

Broker

Answer 6

A person who executes securities transactions for others. Can also be called a dealer

Question 7

scienter

Answer 7

to defraud or the actual/implied knowledge of fraud