H&R BLOCK CHAPTER 12 ETHICS
Questions – 100% Correct, Expert
Verified Answers with A+ Grade
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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. ANSW ✔✔ AUDIT
Regulations governing the practice of attorneys, certified public accountants, enrolled
agents, enrolled actuaries, and appraisers before the IRS. ANSW ✔✔ CIRCULAR 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.
ANSW ✔✔ CIVIL PENALTY
IRS penalty assessed in cases where the taxpayer has willfully engaged in criminal conduct.
Penalties may be monetary or incarceration. ANSW ✔✔ CRIMINAL PENALTY
The release of tax information by an IRS employee. ANSW ✔✔ DISCLOSURE
Reasonable steps taken by a tax preparer in order to satisfy compliance with the tax law and
ensure that a tax return is correct. ANSW ✔✔ DUE DILIGENCE
Failure or refusal to comply with the Tax Code. ANSW ✔✔ NONCOMPLIANCE
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. ANSW ✔✔ NON SIGNING RETURN PREPARER
Questions – 100% Correct, Expert
Verified Answers with A+ Grade
Assurance
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. ANSW ✔✔ AUDIT
Regulations governing the practice of attorneys, certified public accountants, enrolled
agents, enrolled actuaries, and appraisers before the IRS. ANSW ✔✔ CIRCULAR 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.
ANSW ✔✔ CIVIL PENALTY
IRS penalty assessed in cases where the taxpayer has willfully engaged in criminal conduct.
Penalties may be monetary or incarceration. ANSW ✔✔ CRIMINAL PENALTY
The release of tax information by an IRS employee. ANSW ✔✔ DISCLOSURE
Reasonable steps taken by a tax preparer in order to satisfy compliance with the tax law and
ensure that a tax return is correct. ANSW ✔✔ DUE DILIGENCE
Failure or refusal to comply with the Tax Code. ANSW ✔✔ NONCOMPLIANCE
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. ANSW ✔✔ NON SIGNING RETURN PREPARER
