If a Paid Tax Return Preparer Intentionally Discloses Qualitative Information,such

question 15

Multiple Choice

If a paid tax return preparer intentionally discloses qualitative information,such as a client's address,but does not disclose any financial information appearing on the client's tax return,the tax return preparer:

• A) Is potentially subject to monetary penalties and possible imprisonment
• B) Is potentially subject to monetary penalties but not criminal punishment
• C) Is subject to a statutory fine of $1,000 per violation unless the preparer can demonstrate good cause
• D) Not subject to monetary penalties and possible imprisonment because her misconduct involved an accidental mistake

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Definitions:

Social Security Tax

A tax that funds the Social Security program, which provides retirement, disability, and survivors' benefits.

Salary

Regular payments usually made monthly or bi-weekly to an employee, often annualized, for performing a job.

Payroll Taxes

Levies charged to both employers and workers, determined as a proportion of the wages that businesses distribute to their personnel.

Federal Government

The national government of a federated state, which holds the authority to govern at a national level as distinct from regional or local levels.