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:

Total Output

The total quantity of goods or services produced by a firm or an economy in a specific period.

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.

Output

The quantity of goods or services produced within a given timeframe.