Circular 230 Prohibits a Tax Preparer from Charging an Unconscionable

question 130

True/False

Circular 230 prohibits a tax preparer from charging an unconscionable fee for his/her services.

---

Definitions:

Charter

A formal document issued by a sovereign or state outlining the rights, privileges, or authority granted to an individual, corporation, or city.

Authorized

Authorized refers to having official permission or approval for actions, operations, or status within legal or organizational frameworks.

Liquidation Preference

A term in a contract that stipulates the order in which shareholders are paid out in the event of a liquidation or exit.

Preferred Stock

A class of shares that offer their holders preferential rights to dividends and asset distribution over common stockholders, often without voting rights.