If a Tax Return Preparer Informs a Taxpayer That an Error

question 24

Multiple Choice

If a tax return preparer informs a taxpayer that an error exists in a tax return previously filed by the taxpayer,the taxpayer has:

• A) A duty to correct the tax return under all circumstances
• B) A duty to correct the tax return only if the error was intentional
• C) A duty to correct the tax return only if the error was material
• D) No duty to correct the tax return

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Definitions:

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Income

Money received, especially on a regular basis, for work or through investments.

Going Rate

Refers to the current average cost or pricing point for goods, services, or wages in a particular market or industry.

Oil Well

A drilled site where petroleum and natural gas are extracted from beneath the earth's surface.