Question 1

Quon filed an amended return, claiming a $100,000 refund. The IRS disallowed the refund, and it can assess a penalty if there was no reasonable basis of support for the refund claim, in the amount of
% of the disallowed amount.

Accepted Answer

The answer of Quon filed an amended return, claiming a...

Question 2

The accuracy-related penalties typically relate to on the part of the taxpayer, or other understatements of tax.

Accepted Answer

The answer of The accuracy-related penalties typically relate to on...

Question 3

A % penalty may result when the value of an asset contributed to a charity is reported at an amount that exceeds 150% of the correct valuation.

Accepted Answer

The answer of A % penalty may result when the...

Question 4

Maria's AGI last year was $95,000. To avoid a penalty, her estimated tax payments and withholdings for this year must equal the lesser of ____________________ percent of last year's taxes or ____________________ percent of this year's taxes.

Accepted Answer

The answer of Maria's AGI last year was $95,000. To...

Question 5

The general statute of limitations regarding Federal tax returns extends for years. It is
years if a substantial understatement of income is found, and years with respect to worthless securities.

Accepted Answer

The answer of The general statute of limitations regarding Federal...

Question 6

An individual's amended tax return, computing a refund or amount due, generally uses Form
____________________.

Accepted Answer

The answer of An individual's amended tax return, computing a...

Question 7

The tax workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena.

Accepted Answer

The answer of The tax workpapers prepared as part of...

Question 8

A privilege of exists between a tax preparer and the client as to tax advice rendered.

Accepted Answer

The answer of A privilege of exists between a tax...

Question 9

A negligence penalty can be waived if the taxpayer discloses a tax return position that is contrary to a judicial
precedent and there is a for the taxpayer's position.

Accepted Answer

The answer of A negligence penalty can be waived if...

Question 10

A(n) must obtain a Preparer Tax Identification Number (PTIN).

Accepted Answer

The answer of A(n) must obtain a Preparer Tax Identification...

Question 11

An individual is not subject to an underpayment penalty until more than $ is due and unpaid through estimated taxes.

Accepted Answer

The answer of An individual is not subject to an...

Question 12

If the taxpayer shows for an underpayment of tax, the failure to pay penalty can be reduced or eliminated.

Accepted Answer

The answer of If the taxpayer shows for an underpayment...

Question 13

A penalty can be assessed from an appraiser who knew that his/her improper appraisal would be used as part of a tax computation, in the amount of the lesser of % of the tax understatement or
____________________ % of the appraisal fee collected.

Accepted Answer

The answer of A penalty can be assessed from an...

Question 14

The Treasury document regulating the professional conduct of tax return preparers is the Regulation known as
_________________________.

Accepted Answer

The answer of The Treasury document regulating the professional conduct...

Question 15

For purposes of tax penalties, a VITA volunteer is not classified as a tax return .

Accepted Answer

The answer of For purposes of tax penalties, a VITA...

Question 16

A CPA, an attorney, and a(n) can represent taxpayers before the IRS in an Appeals conference.

Accepted Answer

The answer of A CPA, an attorney, and a(n) can...

Question 17

A(n) $ penalty applies if the tax preparer does not sign the client's tax return.

Accepted Answer

The answer of A(n) $ penalty applies if the tax...

Question 18

The tax preparer penalty for taking an unreasonable tax return position is the greater of $
or of the tax professional's income from preparing the return.

Accepted Answer

The answer of The tax preparer penalty for taking an...

Question 19

The IRS can waive the penalty for a substantial understatement of a tax liability if the taxpayer shows
for the position taken on the tax return.

Accepted Answer

The answer of The IRS can waive the penalty for...

Question 20

The taxpayer can avoid a valuation penalty for overstating the value of the charitable contribution of an artwork by showing that the deduction claimed was based on a qualified .

Accepted Answer

The answer of The taxpayer can avoid a valuation penalty...

Quiz 26: Tax Practice and Ethics

Quon filed an amended return, claiming a $100,000 refund. The IRS disallowed the refund, and it can assess a penalty if there was no reasonable basis of support for the refund claim, in the amount of % of the disallowed amount.

The accuracy-related penalties typically relate to on the part of the taxpayer, or other understatements of tax.

A % penalty may result when the value of an asset contributed to a charity is reported at an amount that exceeds 150% of the correct valuation.

Maria's AGI last year was $95,000. To avoid a penalty, her estimated tax payments and withholdings for this year must equal the lesser of percent of last year's taxes or percent of this year's taxes.

The general statute of limitations regarding Federal tax returns extends for years. It is years if a substantial understatement of income is found, and years with respect to worthless securities.

An individual's amended tax return, computing a refund or amount due, generally uses Form ____________________.

The tax workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena.

A privilege of exists between a tax preparer and the client as to tax advice rendered.

A negligence penalty can be waived if the taxpayer discloses a tax return position that is contrary to a judicial precedent and there is a for the taxpayer's position.

A(n) must obtain a Preparer Tax Identification Number (PTIN).

An individual is not subject to an underpayment penalty until more than $ is due and unpaid through estimated taxes.

If the taxpayer shows for an underpayment of tax, the failure to pay penalty can be reduced or eliminated.

A penalty can be assessed from an appraiser who knew that his/her improper appraisal would be used as part of a tax computation, in the amount of the lesser of % of the tax understatement or ____________________ % of the appraisal fee collected.

The Treasury document regulating the professional conduct of tax return preparers is the Regulation known as _________________________.

For purposes of tax penalties, a VITA volunteer is not classified as a tax return .

A CPA, an attorney, and a(n) can represent taxpayers before the IRS in an Appeals conference.

A(n) $ penalty applies if the tax preparer does not sign the client's tax return.

The tax preparer penalty for taking an unreasonable tax return position is the greater of $ or of the tax professional's income from preparing the return.

The IRS can waive the penalty for a substantial understatement of a tax liability if the taxpayer shows for the position taken on the tax return.

The taxpayer can avoid a valuation penalty for overstating the value of the charitable contribution of an artwork by showing that the deduction claimed was based on a qualified .