Which of the Following Is Not a Preparer Penalty

question 29

Multiple Choice

Which of the following is not a preparer penalty?

• A)Tax preparers may be assessed a penalty for failing to give the taxpayer the preparer's workpapers.
• B)Tax preparers may be assessed a penalty for failing to keep a copy of the prepared return.
• C)Tax preparers may be assessed a penalty for endorsing or cashing a refund check issued to a taxpayer.
• D)Tax preparers may be assessed a penalty for failing to sign a tax return.

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Definitions:

Fixed Asset

Fixed asset, also known as a non-current asset, is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

Useful Life

The estimated duration an asset is expected to be used in business operations, impacting depreciation calculations.

Residual Value

The estimated amount that an asset is worth at the end of its useful life.

Net Income

What a company ultimately makes, after subtracting everything it spends including taxes and costs, from the revenue it generates.