Which of the following statements is correct?
A)Individuals who prepare their own tax returns are subject to Circular 230.
B)Under Circular 230,contingent fees are permitted if disclosed in writing.
C)Paid preparers must inform the client if the client has made an error in a document submitted to the IRS.
D)All of the statements are correct.

Question

Quizplus · Accepted Answer

According to Circular 230, paid preparers are required to inform the client if the client has made an error in a document submitted to the IRS. Option A is incorrect because individuals who prepare their own tax returns are not subject to Circular 230. Option B is incorrect because under Circular 230, contingent fees are prohibited except in certain cases and only if disclosed in writing. Therefore, option C is the only statement that is correct.

Which of the Following Statements Is Correct