A Tax Preparer Is in Violation of Circular 230 If

question 142

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 these are Circular 230 violations.

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Definitions:

Examinations

Formal tests measuring students' knowledge or skills in a particular area of study, used in educational assessments.

Performance

The act or process of carrying out a task or function, often evaluated in terms of efficiency, effectiveness, or success in achieving objectives.

Whistleblower

An individual who exposes information or activity that is deemed illegal, unethical, or not correct within an organization.

Governmental Inefficiency

The inability of a government to achieve its objectives due to wasted resources, poor management, or unnecessary bureaucracy.