A Tax Preparer Is in Violation of Circular 230 If

question 53

Multiple Choice

A tax preparer is in violation of Circular 230 if he or she:

• A)Discusses the content of a client's tax return with a friend.
• B)Does not sign the tax return that is prepared as a favor for a relative.
• C)Files a tax return that includes a math error.
• D)Fails to inform the IRS of an error on the client's prior-year return.
• E)All of the above are circular 230 violations.

---

Definitions:

Direct Labor-Hour

A measure of the labor time directly involved in producing goods, often used to allocate labor costs to products.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and indirect materials.

Selling and Administrative Expense Budget

A financial plan that estimates the costs associated with selling products and managing the business, including marketing, salaries, and office expenses.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and salaries.