The Rules of Circular 230 Need Not Be Followed By

question 126

Multiple Choice

The rules of Circular 230 need not be followed by:

• A)An attorney.
• B)A CPA.
• C)A Wal-Mart cashier who e-files 15 tax returns for her paying clients per filing season.
• D)An enrolled agent.
• E)All of the above are subject to the Circular 230 rules.

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Definitions:

Normal Goods

Goods for which demand increases as the income of the buyer increases and decreases as the income of the buyer decreases, showing a positive correlation between income changes and demand.

Overallocation

The process of assigning more resources to a project or sector than is available or sustainable, leading to inefficiencies.

Underallocation

A situation where resources are not distributed efficiently, resulting in potential benefits not being fully realized.

Technological Progress

The advancement of technology, leading to improved methods for producing goods and services, enhancing efficiency, and driving economic growth.