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:

Confidence Level

The probability, expressed as a percentage, that a parameter lies within a specified range of values, as calculated by a confidence interval.

Confidence Interval

An interval of values based on sample data, expected to encompass the value of a parameter of an unobserved population.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Adults in Town

The population segment within a town or city that comprises individuals who are legally recognized as adults.