Question 1

Vera is audited by the IRS for three tax years.Her returns were prepared by the following parties,to each of whom Vera paid a professional fee. Tax Year Preparer 1 Sally (Vera's niece,a dentist)  2 Wesley (an Enrolled Agent)  3 Alex (a CPA)  Vera wants help in appearing before the IRS Revenue Agent for the audit.Which of the following statements is correct?

Accepted Answer

A)  Sally may represent Vera for all tax years involved.
B)  Wesley may represent Vera,but only for tax year 2.
C)  Alex can represent Vera,but only for tax year 3.
D)  Vera may represent herself for all tax years involved.E) A) and D)
F) B) and C)

Question 2

The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.

Accepted Answer

A) True 
 B)False

Question 3

Under Circular 230,tax preparer Winston cannot disclose to a mortgage banker the income level of her client Pickett,or other information acquired by preparing the return,without Pickett's permission.

Accepted Answer

A) True 
 B)False

Question 4

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Accepted Answer

The answer of The accuracy-related penalties typically relate to ____________________on...

Question 5

A(n) ___________________ member is required to follow the Statements of Standards for Tax Services in conducting a tax practice.

Accepted Answer

The answer of A(n) ___________________ member is required to follow...

Question 6

Circular 230 requires that a paid tax preparer apply a thorough quality review system in preparing tax returns for her clients.

Accepted Answer

A) True 
 B)False

Question 7

If the taxpayer comes to the office of the IRS for the audit of a tax return,the review is called a(n) ____________________ audit.

Accepted Answer

The answer of If the taxpayer comes to the office...

Question 8

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
a.Taxpayer penalty
b.Tax preparer penalty
c.Appraiser's penalty
-Failure to file a tax return.

Accepted Answer

The answer of Match each of the following tax penalties...

Question 9

Chung's AGI last year was $180,000.Her Federal income tax came to $45,000,which she paid through a combination of withholding and estimated payments.This year,her AGI will be $250,000,with a projected tax liability of $60,000,all to be paid through estimates.Ignore the annualized income method.Compute Chung's quarterly estimated payment schedule for this year.

Accepted Answer

Current-Year Method

First quarter...

Question 10

The chief executive of the IRS is the _________________________.

Accepted Answer

The answer of The chief executive of the IRS is...

Question 11

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters might be used.
a.Ignorance of the tax law
b.Reasonable basis
c.Reasonable cause
d.Complexity of the tax law
e.Substantial authority
f.Disclosure on return
-Undervaluation of a reported item.

Accepted Answer

The answer of For each of the indicated tax penalties,...

Exam 26: Tax Practice and Ethics

Correct Answer
verified
Current-Year Method

First quarter...
View Answer

Correct Answer
verified

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Correct Answer
verified

Under Circular 230,tax preparer Winston cannot disclose to a mortgage banker the income level of her client Pickett,or other information acquired by preparing the return,without Pickett's permission.

Correct Answer
verified

Correct Answer
verified

The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.

Correct Answer
verified

Circular 230 requires that a paid tax preparer apply a thorough quality review system in preparing tax returns for her clients.

Correct Answer
verified

The chief executive of the IRS is the _________________________.

Correct Answer
verified

A(n) ___________________ member is required to follow the Statements of Standards for Tax Services in conducting a tax practice.

Correct Answer
verified

If the taxpayer comes to the office of the IRS for the audit of a tax return,the review is called a(n) ____________________ audit.

Correct Answer
verified

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. a.Taxpayer penalty b.Tax preparer penalty c.Appraiser's penalty -Failure to file a tax return.

Correct Answer
verified

Exam 26: Tax Practice and Ethics

Correct AnswerverifiedCurrent-Year Method ​ ​ First quarter...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Correct AnswerverifiedShow Answer

Under Circular 230,tax preparer Winston cannot disclose to a mortgage banker the income level of her client Pickett,or other information acquired by preparing the return,without Pickett's permission.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.

Correct AnswerverifiedShow Answer

Circular 230 requires that a paid tax preparer apply a thorough quality review system in preparing tax returns for her clients.

Correct AnswerverifiedShow Answer

The chief executive of the IRS is the _________________________.

Correct AnswerverifiedShow Answer

A(n) ___________________ member is required to follow the Statements of Standards for Tax Services in conducting a tax practice.

Correct AnswerverifiedShow Answer

If the taxpayer comes to the office of the IRS for the audit of a tax return,the review is called a(n) ____________________ audit.

Correct AnswerverifiedShow Answer

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. a.Taxpayer penalty b.Tax preparer penalty c.Appraiser's penalty -Failure to file a tax return.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Current-Year Method

First quarter...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified