Which of the Following Is Subject to Tax Return Preparer

question 150

Multiple Choice

Which of the following is subject to tax return preparer penalties?

• A) Meredith is the director of Federal taxes for a C corporation.
• B) Sammy is a volunteer who prepares returns at the retirement home under the IRS Tax Counseling for the Elderly program.
• C) Abbie prepares her mother's tax returns for $50 a year. A CPA, Abbie would charge a client $750 for
• Completing a similar return.
• D) Lizzie, the firm's administrative assistant, makes copies of returns and assembles the mailings that the client
• Must make to the taxing agencies.

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Definitions:

Income Taxes Payable

Represents the amount of taxes on income that a company owes to the government but has not yet paid.

Accounts Payable

Short-term financial obligations to suppliers or creditors for goods and services received but not yet paid for.

Equipment

Tangible assets used in the operation of a business, not intended for sale.

Selling Price

The price at which a product or service is sold to customers, determining the revenue generated from sales activities.