Ethics And Responsibilities In Tax Flashcards Preview

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Flashcards in Ethics And Responsibilities In Tax Deck (31)
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0
Q

You can delay fulfilling an IRs request for records and info under circular 230 if

A

You investigated and believe in good faith the info is privileged.

1
Q

When there is a material error in a return you should promptly inform

A

Your client

2
Q

Best practice under circular 230 is

A

Establishing relevant facts, evaluating reasonableness of assumptions and representations and arriving at a conclusion supported by law and facts in tax.

3
Q

Retaining client records is ok under

A

Circular 230

4
Q

Services rendered in connection with the IRS examination or challenge of original tax return or amended tax return filed within 120 days

Claim is solely in connection with statutory interest or penalties

Representing the client in judicial proceedings

A

A contingent fee may be charged

5
Q

Frivolous claims should never be taken by

A

The tax practitioner

6
Q

Claims that have a realistic possibility of being sustained

A

May be taken

7
Q

Conditions to use estimates are?

A

It is impracticable to obtain exact data

The estimates are reasonable, given known facts

The estimates do not imply greater accuracy than truly exists

8
Q

The tax practitioner is only required to report

A

Material errors

9
Q

Realistic possibility of being sustained is

A

33-50%

10
Q

Seats no. 7 does not require written advice for

A

Complicated matters.

11
Q

Under ssts 2 CPA may omit an answer

A

Under reasonable grounds

12
Q

The sophistication of the client must be considered when deciding

A

Oral or written advice

13
Q

Attempts to claim a deduction that was disallowed can be used

A

If a leading tax authority publish an article arguing persuasively. A court has issued a favorable opinion

14
Q

A CPA should warn a taxpayer about penalty risks when the risk is

A

More likely than not to be sustained

15
Q

Info not readily available
Genuine uncertainty exists
The answer is voluminous

A

Reasonable grounds to omit an answer

16
Q

Under tax law. The taxpayer must meet reasonable basis and substantial authority to not

A

Disclose a tax position

17
Q

People are TRPs if

A

They are paid
Prepare or retain employees to prepare
A substantial portion
Of any fed tax return

18
Q

A trustee who prepares a tax return for his trust is not

A

A tax return preparer TRP

19
Q

For a tax shelter the IRS adopted a

A

More likely than not (over 50%) standard

20
Q

A deduction less than $10,000 or $40,000 is not a

A

Substantial portion

21
Q

Understatement of tax liability is unreasonable if there is no substantial authority

A

(Less than 40% chance of bring sustained)

22
Q

Understatement of tax liability is Unreasonable if disclosed yet no reasonable basis.

A

Less than 20% chance of being sustained

23
Q

Section 6695 penalties

A

Failure to furnish copy of return to taxpayer
Failure to sign return and show own identity
Failure to furnish preparers identifying number to irs
Failure to keep copy of return

24
Q

6700 punished promotion of abusive tax shelters when

A

Knowingly or reckless make false statement or
Engage in gross overvaluation of property and
Organize or participate in sell of shelter

25
Q

6701 is aiding and abetting understatement of tax

A

Liability

26
Q

If there are no written standards

A

Realistic possibility 33%

Reasonable basis 20-33% and disclosed

27
Q

Authority of tax provisions under Aicpa are

A

Applicable statute(constructive)
Articles and treaties (well reasoned)
Pronoun cements

28
Q

Grounds for omission

A

Not readily available
Uncertainty to meaning of question
Voluminous and will b supplied upon examination

29
Q

jeep is

A

Joint ethics enforcement program

Divides ethic complaints and investigations between AICPA and state societies

30
Q

Expulsion from the AICPA without hearing is

A

Committing a felony
Failing to file tax return
Filing fraudulent tax return on own or clients behalf
Aiding in preparing a fraudulent tax return for a client