If the CPA Negligently Failed to Properly Prepare and File

question 62

Multiple Choice

If the CPA negligently failed to properly prepare and file a client's tax return, the CPA may be liable for

• A) the penalties the client owes the IRS.
• B) the penalties and interest the client owes.
• C) the penalties and interest the client owes, plus the tax preparation fee the CPA charged.
• D) the penalties and interest, the tax preparation fee, and the amount of tax that was underpaid.

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Definitions:

Regressive Coping

A coping mechanism characterized by the adoption of behaviors typical at an earlier stage of development when faced with stressors, instead of handling them in a mature manner.

Transformational Coping

A coping strategy where individuals change their perspective or approach to stress, leading to personal growth and positive change.

Interrole Conflict

Conflict arising when the expectations of two or more roles held by an individual are incompatible, leading to stress and difficulty in role performance.

Intrarole Conflict

A situation where an individual faces conflicting expectations and demands associated with a single role they occupy.