Return Preparers || QUESTIONS WITH COMPLETE
SOLUTIONS!!!
If someone pays you to help prepare their tax return, do you need to sign it to claim primary
responsibility for the preparation? correct answers Yes. If you are getting paid to prepare a
return, you are a return preparer and must comply with the rules of practice.
An income tax preparer must retain a copy of each tax return they prepare. What are the
acceptable formats? correct answers Copies of each return
An accurate list, either in paper or in a database, of the information in the returns prepared.
A card file of the returns
In regards to tax return retention, what is a card file? correct answers A collection of cards
containing data or records, arranged alphabetically, in boxes or drawers.
The card file would need to contain the name, TIN, taxable year of the return, and the type of
return
All paid tax return preparers must have a _________________ before preparing any federal
tax returns. correct answers Preparer Tax Identification Number (PTIN)
What is a PTIN? correct answers Preparer Tax Identification Number
Issued by the IRS to tax return preparers.
Any individual who, for compensation, prepares all or substantially all of a tax return or
claim for refund-including making determinations that affect tax liability-needs a PTIN.
Any tax return preparer must furnish a completed copy of the return to the taxpayer. correct
answers
Paid tax return preparers must renew their PTINs each year by December ____ correct
answers 31st
When must a tax preparer provide a taxpayer with a copy of the taxpayer's return? correct
answers No later than the time the return is presented for the taxpayer's signature
A person who is compensated for preparing as a fiduciary a return for any person is NOT a
tax return preparer. correct answers This is because it is the normal duties of a fiduciary to
prepare the trust return for the beneficiaries. They would not be considered "paid preparers".
A person who is compensated for preparing a claim for refund for a taxpayer in response to
any notice of deficiency issued to a taxpayer is NOT a tax return preparer. correct answers
The following are NOT tax preparers: correct answers Data entry clerks (inputting data for
return prep)
SOLUTIONS!!!
If someone pays you to help prepare their tax return, do you need to sign it to claim primary
responsibility for the preparation? correct answers Yes. If you are getting paid to prepare a
return, you are a return preparer and must comply with the rules of practice.
An income tax preparer must retain a copy of each tax return they prepare. What are the
acceptable formats? correct answers Copies of each return
An accurate list, either in paper or in a database, of the information in the returns prepared.
A card file of the returns
In regards to tax return retention, what is a card file? correct answers A collection of cards
containing data or records, arranged alphabetically, in boxes or drawers.
The card file would need to contain the name, TIN, taxable year of the return, and the type of
return
All paid tax return preparers must have a _________________ before preparing any federal
tax returns. correct answers Preparer Tax Identification Number (PTIN)
What is a PTIN? correct answers Preparer Tax Identification Number
Issued by the IRS to tax return preparers.
Any individual who, for compensation, prepares all or substantially all of a tax return or
claim for refund-including making determinations that affect tax liability-needs a PTIN.
Any tax return preparer must furnish a completed copy of the return to the taxpayer. correct
answers
Paid tax return preparers must renew their PTINs each year by December ____ correct
answers 31st
When must a tax preparer provide a taxpayer with a copy of the taxpayer's return? correct
answers No later than the time the return is presented for the taxpayer's signature
A person who is compensated for preparing as a fiduciary a return for any person is NOT a
tax return preparer. correct answers This is because it is the normal duties of a fiduciary to
prepare the trust return for the beneficiaries. They would not be considered "paid preparers".
A person who is compensated for preparing a claim for refund for a taxpayer in response to
any notice of deficiency issued to a taxpayer is NOT a tax return preparer. correct answers
The following are NOT tax preparers: correct answers Data entry clerks (inputting data for
return prep)
