Tax Return Preparers Can Be Penalized for the Following Activities

question 76

Multiple Choice

Tax return preparers can be penalized for the following activities except

• A)failure to sign a return.
• B)failure to give a copy of the return to the taxpayer.
• C)failure to maintain IRS continuing education requirements.
• D)failure to provide the preparer's identification number on the return.

Understand the impact of tax rates on savings and investments and calculate the after-tax rate of return.

Identify key terms related to the cost of borrowing for corporations and the insurance of deposits by the FDIC.

Recognize the use and implications of credit in personal finance, including home mortgages and credit laws.

Differentiate among financial institutions in terms of services, fees, and government insurance.

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Definitions:

Commercial Banks

Financial institutions that accept deposits, offer checking account services, and provide business, personal, and mortgage loans.

Thrift Institutions

Financial institutions that primarily accept savings deposits and make mortgage and other loans.

Actual Reserves

The total funds a bank has in its vault or deposited with the central bank, available for immediate use.

Required Reserves

Required reserves refer to the minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations to ensure bank liquidity.