H&R BLOCK CHAPTER 12 ETHICS
QUESTIONS WITH ACCURATE
ANSWERS
A monetary penalty that can be assessed by the IRS or state or local taxing
authority. Civil penalties are generally based on the amount of the understated
tax, unpaid tax, or tax due. correct answer CIVIL PENALTY
A tax preparer must release a joint return to either or both spouses named as the
taxpayers, because the return belongs to each spouse. correct answer TRUE
A tax preparer who is not an attorney, CPA, enrolled agent, enrolled retirement
plan agent, or enrolled actuary authorized to practice before the IRS. correct
answer Unenrolled Tax Preparer
A tax return preparer can refuse to submit available records and information
upon a lawful and proper request by the IRS. correct answer FALSE
A tax return preparer must:
Not neglect or refuse to submit available records and information upon a lawful
and proper request by the IRS. correct answer TRUE
An IRS examination and verification of a taxpayer's return or other transactions
with tax consequences. A correspondence audit is a tax audit that the IRS
performs by mail. An office audit is an audit by the IRS which is conducted in the
agent's office. A field audit is conducted by the IRS on the business premises of
, the taxpayer or in the office of the tax practitioner representing the taxpayer.
correct answer AUDIT
An objective standard involving an analysis of the law and application of the law
to the relevant facts. correct answer Substantial Authority Standard
Any tax return preparer who is not a signing tax return preparer, but who
prepares all or a substantial portion of a return or claim for refund with respect to
events that have occurred at the time the advice is rendered. correct answer NON
SIGNING RETURN PREPARER
Criminal penalties can be monetary, but may also involve prison time. This is
possible when there is willful misconduct. correct answer TRUE
Failure or refusal to comply with the Tax Code. correct answer NONCOMPLIANCE
Generally, requests from the IRS are sent directly to the taxpayer rather than to
the tax preparer. Thus, the tax preparer will not know of the request unless the
taxpayer brings it to their attention. correct answer TRUE
If a taxpayer does not have receipts or documentation for business expenses and
refuses to reconstruct them or obtain substitute records, can you sign the return?
correct answer NO
If a taxpayer intentionally gives information to deceive the IRS, this behavior is . . .
correct answer FRAUD
QUESTIONS WITH ACCURATE
ANSWERS
A monetary penalty that can be assessed by the IRS or state or local taxing
authority. Civil penalties are generally based on the amount of the understated
tax, unpaid tax, or tax due. correct answer CIVIL PENALTY
A tax preparer must release a joint return to either or both spouses named as the
taxpayers, because the return belongs to each spouse. correct answer TRUE
A tax preparer who is not an attorney, CPA, enrolled agent, enrolled retirement
plan agent, or enrolled actuary authorized to practice before the IRS. correct
answer Unenrolled Tax Preparer
A tax return preparer can refuse to submit available records and information
upon a lawful and proper request by the IRS. correct answer FALSE
A tax return preparer must:
Not neglect or refuse to submit available records and information upon a lawful
and proper request by the IRS. correct answer TRUE
An IRS examination and verification of a taxpayer's return or other transactions
with tax consequences. A correspondence audit is a tax audit that the IRS
performs by mail. An office audit is an audit by the IRS which is conducted in the
agent's office. A field audit is conducted by the IRS on the business premises of
, the taxpayer or in the office of the tax practitioner representing the taxpayer.
correct answer AUDIT
An objective standard involving an analysis of the law and application of the law
to the relevant facts. correct answer Substantial Authority Standard
Any tax return preparer who is not a signing tax return preparer, but who
prepares all or a substantial portion of a return or claim for refund with respect to
events that have occurred at the time the advice is rendered. correct answer NON
SIGNING RETURN PREPARER
Criminal penalties can be monetary, but may also involve prison time. This is
possible when there is willful misconduct. correct answer TRUE
Failure or refusal to comply with the Tax Code. correct answer NONCOMPLIANCE
Generally, requests from the IRS are sent directly to the taxpayer rather than to
the tax preparer. Thus, the tax preparer will not know of the request unless the
taxpayer brings it to their attention. correct answer TRUE
If a taxpayer does not have receipts or documentation for business expenses and
refuses to reconstruct them or obtain substitute records, can you sign the return?
correct answer NO
If a taxpayer intentionally gives information to deceive the IRS, this behavior is . . .
correct answer FRAUD
