H&R BLOCK CHAPTER 12 ETHICS
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. - answerAUDIT
Regulations governing the practice of attorneys, certified public accountants, enrolled
agents, enrolled actuaries, and appraisers before the IRS. - answerCIRCULAR 230
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. - answerCIVIL PENALTY
IRS penalty assessed in cases where the taxpayer has willfully engaged in criminal
conduct. Penalties may be monetary or incarceration. - answerCRIMINAL PENALTY
The release of tax information by an IRS employee. - answerDISCLOSURE
Reasonable steps taken by a tax preparer in order to satisfy compliance with the tax law
and ensure that a tax return is correct. - answerDUE DILIGENCE
Failure or refusal to comply with the Tax Code. - answerNONCOMPLIANCE
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. - answerNON SIGNING RETURN
PREPARER
Protection from being required to disclose confidential communications between two
parties, such as attorney and client. - answerPRIVILEGE
Official interpretations of the Tax Code by the IRS Commissioner. They do not have the
force and effect of law, except in those cases in which the law on a particular subject
calls for rules on that subject to be expounded through regulations. -
answerREGULATIONS
The individual tax return preparer that has the primary responsibility for the overall
substantive accuracy of the preparation of the return or claim for refund. -
answerSigning Return Preparer
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. - answerAUDIT
Regulations governing the practice of attorneys, certified public accountants, enrolled
agents, enrolled actuaries, and appraisers before the IRS. - answerCIRCULAR 230
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. - answerCIVIL PENALTY
IRS penalty assessed in cases where the taxpayer has willfully engaged in criminal
conduct. Penalties may be monetary or incarceration. - answerCRIMINAL PENALTY
The release of tax information by an IRS employee. - answerDISCLOSURE
Reasonable steps taken by a tax preparer in order to satisfy compliance with the tax law
and ensure that a tax return is correct. - answerDUE DILIGENCE
Failure or refusal to comply with the Tax Code. - answerNONCOMPLIANCE
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. - answerNON SIGNING RETURN
PREPARER
Protection from being required to disclose confidential communications between two
parties, such as attorney and client. - answerPRIVILEGE
Official interpretations of the Tax Code by the IRS Commissioner. They do not have the
force and effect of law, except in those cases in which the law on a particular subject
calls for rules on that subject to be expounded through regulations. -
answerREGULATIONS
The individual tax return preparer that has the primary responsibility for the overall
substantive accuracy of the preparation of the return or claim for refund. -
answerSigning Return Preparer
