Identify Which of the Following Statements Is True

question 89

Multiple Choice

Identify which of the following statements is true.

• A)The "innocent spouse provision," if applicable, relieves both spouses from an assessment of tax caused by a spouse's understating income or gain and/or overstating deductions, losses, or credits.
• B)The IRS is precluded from assessing any residual tax liability against transferees and fiduciaries because the initial filers are responsible for meeting the tax payments in a timely fashion.
• C)Treasury Department Circular 230 regulates the practice of attorneys, CPAs, enrolled agents, and enrolled actuaries before the IRS.
• D)All of the above are false.

---

Definitions:

Code of Ethics

A set of principles and standards that guide the professional conduct and decision-making of individuals within an organization or profession.

NFPA

National Fire Protection Association, a global organization dedicated to eliminating death, injury, property, and economic loss due to fire, electrical, and related hazards.

NALA

The National Association of Legal Assistants, a professional organization that provides certification and education for paralegals and legal assistants.

Conflict-of-Interest

A situation in which an individual's personal interests could potentially interfere with their professional duties or responsibilities.