A Tax Preparer Is in Violation of Circular 230 If

question 137

Multiple Choice

A tax preparer is in violation of Circular 230 if he or she:

• A) Files a tax return that includes a math error.
• B) Fails to inform the IRS of an error on the client's prior-year return.
• C) Charges a fee to prepare an original Form 1120 equal to one-third of the taxpayer's refund due.
• D) All of the above are Circular 230 violations.

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Definitions:

Trade Modification

An alteration or change to the terms of a trade agreement or contractual relationship.

Consumer Transaction

Any transaction between a seller and a buyer for goods or services intended for personal, family, or household use.

Real Property

Pertains to land and anything permanently attached to it, including buildings and structures.

Right to Revoke Acceptance

A legal prerogative under certain conditions allowing a buyer to cancel a contract after having previously accepted goods or services.