Question 1

What should an AICPA member doupon learning about an error in a prior year's tax return?

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Question 2

Explain which types of services a CPA can and cannot provide toavoid engaging in the unauthorized practice of law.

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Question 3

What standard must tax practitioners meet under Section 6694 (preparer penalties)of the Internal Revenue Code with respect toundisclosed positions taken on tax returns?

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Question 4

Tax practice can be defined as the application of the tax laws tospecific accounting situations.

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Tax practice involves applying tax laws and regulations to specific financial or accounting situations to ensure compliance and optimize tax outcomes.

Question 5

Does the IRS regulate unenrolled tax preparers? Explain your answer.

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Question 6

Explain the standards for professional services that involve tax return positions under SSTS No.1. What is the level of authority for disclosed or undisclosed positions and what types of authority can be relied upon?

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Question 7

Tobecome an enrolled agent, a person must either pass a special IRS examination or must work for the IRS for at least five years.

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To become an enrolled agent, one must pass the Special Enrollment Examination (SEE) or have relevant experience as a former IRS employee for at least five years in a position that regularly interpreted and applied tax codes and regulations.

Question 8

Explain the concept of "limited practice without enrollment" under Circular 230 and list several of the special situations in which the IRS allows this type of representation.

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Question 9

An ethical dilemma occurs when someone is faced with a situation for which there are noclearly defined answers.

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An ethical dilemma arises when a person is faced with a situation that involves conflicting moral principles, making it difficult to decide on the correct course of action because there are no clear-cut answers.

Question 10

Who may represent a taxpayer before the IRS in cases which gobeyond the examination of the return?

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Question 11

Drafting wills is a part of a CPA's professional duties.

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Drafting wills is typically outside the scope of a CPA's professional duties, as it is considered a legal task and is usually performed by a lawyer or an attorney specializing in estate planning.

Question 12

Explain the AICPA guidelines under SSTS No. 3 for relying without verification on taxpayer or third-party information when preparing a tax return.

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Question 13

The three categories of modern tax practice include tax planning, tax compliance, and tax research.

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Question 14

Taxation and tax practice are comprised of the interaction of several disciplines. What are those disciplines? Briefly discuss their impact on the tax system.

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Quiz 1: Introduction Totax Practice and Ethics