Question 1

The taxpayer must pay a significant fee to have a letter ruling issued by the IRS.

Accepted Answer

A) True 
 B)False

Question 2

The Commissioner of the IRS is appointed by the:

Accepted Answer

A)  Secretary of the Treasury Department.
B)  U. S. President.
C)  U. S. House of Representatives.
D)  U. S. Senate.
E)  SEC Commissioner.F) A) and D)
G) A) and C)

Question 3

Cheng filed an amended return this year, claiming a refund relative to her tax computation on a prior-year's return. When the IRS approves the amended return and issues the refund, it also pays Cheng interest with respect to the overpayment.

Accepted Answer

A) True 
 B)False

Question 4

A ____________________% penalty may result when the value of an asset contributed to a charity is reported at an amount that exceeds 150% of the correct valuation.

Accepted Answer

The answer of A ____________________% penalty may result when the...

Question 5

Lisa, a calendar year taxpayer subject to a 33% marginal Federal income tax rate, claimed a Form 1040 charitable contribution deduction of $250,000 for a sculpture that the IRS later valued at $160,000. The applicable overvaluation penalty is:

Accepted Answer

A)  $0.
B)  $6,000.
C)  $10,000 (maximum penalty) .
D)  $12,000.E) A) and B)
F) B) and C)

Question 6

A privilege of ____________________ exists between a tax preparer and the client as to tax advice rendered.

Accepted Answer

The answer of A privilege of ____________________ exists between a...

Question 7

Which statement is incorrect as to the conduct of IRS income tax audits?

Accepted Answer

A)  Most IRS examinations of Forms 1040 are conducted solely through the mail.
B)  The "office audit" occurs less frequently than all other audit types.
C)  The IRS publishes the factors its computers use for audit selection purposes annually in the Commissioner's Report.
D)  For a Form 1040 that is filed on April 11, if the taxpayer has not received an audit notification from the IRS by the end of the year, the return still may be audited.E) None of the above
F) B) and C)

Question 8

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return. The statute of limitations for Keepert's return is six years.

Accepted Answer

A) True 
 B)False

Question 9

Circular 230 requires that the tax practitioner use the "best practices" of the tax profession in carrying out a tax engagement. Specify what some of these best practices entail.

Accepted Answer

Tax advisors are to provide clients with...

Exam 17: Tax Practice and Ethics

Cheng filed an amended return this year, claiming a refund relative to her tax computation on a prior-year's return. When the IRS approves the amended return and issues the refund, it also pays Cheng interest with respect to the overpayment.

Correct Answer
verified

A ____________________% penalty may result when the value of an asset contributed to a charity is reported at an amount that exceeds 150% of the correct valuation.

Correct Answer
verified

The Commissioner of the IRS is appointed by the:

Correct Answer
verified

Which statement is incorrect as to the conduct of IRS income tax audits?

Correct Answer
verified

Circular 230 requires that the tax practitioner use the "best practices" of the tax profession in carrying out a tax engagement. Specify what some of these best practices entail.

Correct Answer
verified
Tax advisors are to provide clients with...
View Answer

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return. The statute of limitations for Keepert's return is six years.

Correct Answer
verified

A privilege of ____________________ exists between a tax preparer and the client as to tax advice rendered.

Correct Answer
verified

The taxpayer must pay a significant fee to have a letter ruling issued by the IRS.

Correct Answer
verified

Lisa, a calendar year taxpayer subject to a 33% marginal Federal income tax rate, claimed a Form 1040 charitable contribution deduction of $250,000 for a sculpture that the IRS later valued at $160,000. The applicable overvaluation penalty is:

Correct Answer
verified

Exam 17: Tax Practice and Ethics

Cheng filed an amended return this year, claiming a refund relative to her tax computation on a prior-year's return. When the IRS approves the amended return and issues the refund, it also pays Cheng interest with respect to the overpayment.

Correct AnswerverifiedShow Answer

A ____________________% penalty may result when the value of an asset contributed to a charity is reported at an amount that exceeds 150% of the correct valuation.

Correct AnswerverifiedShow Answer

The Commissioner of the IRS is appointed by the:

Correct AnswerverifiedShow Answer

Which statement is incorrect as to the conduct of IRS income tax audits?

Correct AnswerverifiedShow Answer

Circular 230 requires that the tax practitioner use the "best practices" of the tax profession in carrying out a tax engagement. Specify what some of these best practices entail.

Correct AnswerverifiedTax advisors are to provide clients with...View AnswerShow Answer

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return. The statute of limitations for Keepert's return is six years.

Correct AnswerverifiedShow Answer

A privilege of ____________________ exists between a tax preparer and the client as to tax advice rendered.

Correct AnswerverifiedShow Answer

The taxpayer must pay a significant fee to have a letter ruling issued by the IRS.

Correct AnswerverifiedShow Answer

Lisa, a calendar year taxpayer subject to a 33% marginal Federal income tax rate, claimed a Form 1040 charitable contribution deduction of $250,000 for a sculpture that the IRS later valued at $160,000. The applicable overvaluation penalty is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Tax advisors are to provide clients with...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified