Mr Boyd Is a Bookkeeper for a Local Auto Repair

Mr. Boyd is a bookkeeper for a local auto repair company. Several years ago, he began to prepare federal income tax returns for his friends and relatives and has developed this sideline into a profitable business. Which of the following statements is true?

A) Mr. Boyd is considered an income tax return preparer subject to federal penalties because he is compensated for preparing returns.
B) Mr. Boyd is not considered an income tax return preparer because he is not an attorney, CPA, or enrolled agent.
C) Mr. Boyd must sign the tax returns prepared for his clients.
D) Statements A. and C. are true.