A Tax Preparer Is in Violation of Circular 230 If

question 137

Multiple Choice

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

• A) Files a tax return that includes a math error.
• B) Fails to inform the IRS of an error on the client's prior-year return.
• C) Charges a fee to prepare an original Form 1120 equal to one-third of the taxpayer's refund due.
• D) All of the above are Circular 230 violations.

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Definitions:

Positive Utility

The benefit or satisfaction gained from the consumption of goods or services that contribute to an individual's well-being and happiness.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision, which can lead to biases.

Framing Effect

The cognitive bias where people react differently to a particular choice depending on how it is presented, such as a loss or gain.

High-End Retailers

Retail outlets that focus on selling premium products and services, often associated with luxury or top-quality items.