Question 1

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Failure to sign the return.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

The answer of Match each of the following tax penalties...

Question 2

An)_________ member must follow the Statements of Standards for Tax Services in conducting a tax practice.

Accepted Answer

The answer of An)_________ member must follow the Statements of...

Question 3

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Failure to pay a tax that is due.
A)Ignorance of the tax law
B)Reasonable basis
C)Reasonable cause
D)Complexity of the tax law
E)Substantial authority
F)Disclosure on return

Accepted Answer

A defense of reasonable cause may be used when the taxpayer can show that they exercised ordinary business care and prudence in satisfying their tax liability, but were nevertheless unable to do so. This could include situations such as illness, death in the family, natural disasters, or other events beyond the taxpayer's control that prevented them from paying the tax.

Question 4

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 5

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Fraudulent failure to file a tax return.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

The penalty for fraudulent failure to file a tax return is a taxpayer penalty under the Code. A taxpayer who willfully fails to file a return or supply information can be assessed a penalty of 75% of the tax required to be paid. This penalty is in addition to other penalties and interest that may be assessed. The other choices, B and C, are not applicable to this specific penalty.

Question 6

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Improper refund claim.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

The penalty for an improper refund claim is a taxpayer penalty, as it is the taxpayer who made the claim for an erroneous refund.

Question 7

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Misstatement of withholding allowances.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

The misstatement of withholding allowances penalty is imposed on the taxpayer, not the tax preparer or appraiser.

Question 8

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Aiding in preparing an improper tax return.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

Aiding in preparing an improper tax return is a tax preparer penalty as per the Code.

Question 9

A privilege of_____________ exists between certain types of tax preparers and the client as to tax advice rendered.

Accepted Answer

The answer of A privilege of_____________ exists between certain types...

Question 10

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Negligence in filing a return.
A)Ignorance of the tax law
B)Reasonable basis
C)Reasonable cause
D)Complexity of the tax law
E)Substantial authority
F)Disclosure on return

Accepted Answer

The answer of For each of the indicated tax penalties,...

Question 11

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 12

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Undervaluation of a reported item.
A)Ignorance of the tax law
B)Reasonable basis
C)Reasonable cause
D)Complexity of the tax law
E)Substantial authority
F)Disclosure on return

Accepted Answer

The answer of For each of the indicated tax penalties,...

Question 13

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 14

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Substantial understatement of a tax.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

The substantial understatement penalty is a penalty imposed on taxpayers for the underpayment of taxes due to a substantial understatement of income tax liability. It is not a penalty that is imposed on tax preparers or appraisers.

Question 15

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Substantial understatement of tax liability.
A)Ignorance of the tax law
B)Reasonable basis
C)Reasonable cause
D)Complexity of the tax law
E)Substantial authority
F)Disclosure on return

Accepted Answer

The answer of For each of the indicated tax penalties,...

Question 16

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Willful and reckless conduct.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

Willful and reckless conduct falls under the category of a tax preparer penalty, as it refers to the behavior of tax preparers who knowingly or recklessly provide incorrect information on tax returns.

Question 17

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Negligence.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

Negligence penalty falls under the Taxpayer penalty category.

Question 18

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Failure to file a tax return.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

Failure to file a tax return penalty is a taxpayer penalty under the Code.

Question 19

An) $__________ penalty applies if the tax preparer does not sign the client's tax return.

Accepted Answer

The answer of An) $__________ penalty applies if the tax...

Question 20

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Failure to pay a tax.
A)Taxpayer penalty
B)Tax preparer penalty
C)Appraiser's penalty

Accepted Answer

Failure to pay a tax penalty is a taxpayer penalty under the Code. This penalty is imposed on the taxpayer who fails to pay their tax liability on time.

Quiz 17: Tax Practice and Ethics

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to sign the return.

An)_________ member must follow the Statements of Standards for Tax Services in conducting a tax practice.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Failure to pay a tax that is due.

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.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Fraudulent failure to file a tax return.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Improper refund claim.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Misstatement of withholding allowances.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Aiding in preparing an improper tax return.

A privilege of_____________ exists between certain types of tax preparers and the client as to tax advice rendered.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Negligence in filing a return.

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

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Undervaluation of a reported item.

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

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Substantial understatement of a tax.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Substantial understatement of tax liability.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Willful and reckless conduct.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Negligence.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to file a tax return.

An) $__________ penalty applies if the tax preparer does not sign the client's tax return.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to pay a tax.

Quiz 17: Tax Practice and Ethics

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to sign the return.

An)_________ member must follow the Statements of Standards for Tax Services in conducting a tax practice.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Failure to pay a tax that is due.

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.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Fraudulent failure to file a tax return.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Improper refund claim.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Misstatement of withholding allowances.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Aiding in preparing an improper tax return.

A privilege of_____________ exists between certain types of tax preparers and the client as to tax advice rendered.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Negligence in filing a return.

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

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Undervaluation of a reported item.

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

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Substantial understatement of a tax.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Substantial understatement of tax liability.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Willful and reckless conduct.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Negligence.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to file a tax return.

An) $__________ penalty applies if the tax preparer does not sign the client's tax return.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to pay a tax.

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.