Asked by Christian Poncio on Jun 11, 2024
Verified
Circular 230:
A) Establishes penalties for failure to comply with its provisions.
B) Applies only to preparation of tax returns by paid preparers.
C) Applies to all individuals who do not use the services of a paid tax preparer.
D) States that paid preparers can be paid for tax services by cashing a client's IRS refund check.
Circular 230
Regulations promulgated by the U.S. Treasury Department governing practice before the IRS by attorneys, CPAs, and other professionals.
Paid Preparers
Paid Preparers are professionals hired to prepare, calculate, and file tax returns on behalf of individuals or businesses.
Tax Services
Professional services provided by experts to help individuals or organizations prepare and file taxes, and offer advice on tax planning and compliance.
- Comprehend the obligations and rules for tax preparers as outlined in Circular 230.
Verified Answer
BK
Beshoy KarasJun 13, 2024
Final Answer :
A
Explanation :
Circular 230 establishes penalties for any individual who fails to comply with its provisions, regardless of whether they are a paid preparer or not.
Answer: B
Circular 230 applies specifically to paid preparers who are responsible for preparing and filing tax returns for their clients.
Answer: C
This statement is incorrect. Circular 230 applies to all paid preparers who prepare and file tax returns on behalf of their clients, regardless of whether individuals choose to prepare their own taxes.
Answer: D
This statement is incorrect. Circular 230 prohibits paid preparers from charging a fee based on a percentage of their client's refund or from taking possession of a client's refund check.
Answer: B
Circular 230 applies specifically to paid preparers who are responsible for preparing and filing tax returns for their clients.
Answer: C
This statement is incorrect. Circular 230 applies to all paid preparers who prepare and file tax returns on behalf of their clients, regardless of whether individuals choose to prepare their own taxes.
Answer: D
This statement is incorrect. Circular 230 prohibits paid preparers from charging a fee based on a percentage of their client's refund or from taking possession of a client's refund check.
Learning Objectives
- Comprehend the obligations and rules for tax preparers as outlined in Circular 230.