Asked by Ashley Pillatos on May 02, 2024
Verified
Under the provisions of Circular 230,paid tax preparers must:
A) Pass a competency examination.
B) Inform the client if the client has made an error in a document submitted to the IRS.
C) Provide a covered opinion.
D) Be an Enrolled Agent.
Circular 230
Regulations governing the practice of tax professionals before the Internal Revenue Service, including standards of conduct and disciplinary procedures.
Competency Examination
A test designed to measure someone's ability or knowledge in a specific field or profession.
Enrolled Agent
A tax advisor who is a federally-authorized tax practitioner empowered by the U.S. Department of the Treasury.
- Acquire knowledge of the standards and regulations that govern tax preparers according to Circular 230.
Verified Answer
ND
Natalia DuarteMay 03, 2024
Final Answer :
B
Explanation :
Under Circular 230, paid tax preparers have a duty to inform clients if they discover any errors in the documents submitted to the IRS. This responsibility includes advising the client of the consequences of the errors and the possible means of correcting them. While passing a competency exam, providing a covered opinion, and being an enrolled agent are all relevant aspects of Circular 230, they are not mandatory requirements for all paid tax preparers.
Learning Objectives
- Acquire knowledge of the standards and regulations that govern tax preparers according to Circular 230.