Taxation questions

Which of the following is not practicing before the Internal Revenue Service? A. Preparing the tax return, furnishing information at the request of the IRS, or appearing as a witness for a taxpayer. B. Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. C. Preparing necessary documents and filing them with the IRS for the taxpayer whose tax returns were prepared by a different practitioner. D. Representing a taxpayer at conferences, hearings, or meetings with the IRS.

Which of the following statements is true with respect to a client's request for records of the client that are necessary for the client to comply with his/her Federal tax obligations? A. The practitioner may never return records of the client to the client even if the client requests prompt return of the records. B. The existence of a dispute over fees always relieves the practitioner of his/her responsibility to return records of the client to the client. C. The practitioner must, at the request of the client, promptly return the records of the client to the client unless applicable state law provides otherwise.

D. The practitioner must, at the request of the client, return the records of the client to the client within 3 months of receiving the request. Frank, a certified public accountant, has the right to make the following solicitations of employment involving IRS matters: A. Seeking new business from a former client. B. Communicating with a family member. C. Targeting mailings. D. All of the answers are correct. According to Circular 230, which of the following statements may NOT be used when a CPA advertises? A. Name, address, and office hours. B. Names of associates of the firm. C.

Claims of quality of service that cannot be verified. D. Membership in professional organizations. Lecture SIX Outline Study Units 1 & 2 Review BUSN 7131 A practitioner providing a covered opinion must comply with each of the following requirements except to A. Base the opinion on unreasonable factual assumptions. B. Relate the applicable law to the relevant facts in the opinion. C. Not contain internally inconsistent legal analysis in the opinion. D. Consider all significant federal tax issues in the opinion. Tax advisors should adhere to "best practices" in providing advice and in preparing a submission to the IRS. Best practices include all of the following except

A. Communicating clearly the terms of the engagement with the client. B. Establishing the facts, their relevancy, and arriving at a conclusion supported solely by the facts. C. Advising the client regarding the import of the conclusions reached. D. Acting fairly with integrity in practice before the IRS. A tax advisor with what responsibility should take reasonable steps to ensure that the firm's procedures for all members, associates, and employees are consistent with the best practices? A.

Overseeing a firm's practice of providing advice concerning federal tax issues. B. Preparing or assisting in the preparation of submissions to the IRS. C. Both overseeing a firm's practice of providing advice concerning federal tax issues and preparing or assisting in the preparation of submissions to the IRS. D. Neither overseeing a firm's practice of providing advice concerning federal tax issues nor preparing or assisting in the preparation of submissions to the IRS. Mr. K employs X, Y, and Z to prepare income tax returns for taxpayers. X and Y collect the information from taxpayers and apply the tax laws.

The return forms are completed by a computer service. One day, when certain returns prepared by X and Y were ready for their signatures, X was out of town for 2 weeks and Y was out of the office for the day. Which one of the following statements is true? A. Z may sign the returns prepared by X and Y if Z reviews the information obtained by X and Y from the taxpayers and reviews the preparation of the returns. B. Z may sign the returns prepared by X if Z reviews the information obtained by X from the taxpayers and reviews the preparation of the returns. C.

Z may sign the returns prepared by Y if he reviews the information obtained by Y from the taxpayers and reviews the preparation of the returns. D. X and Y must sign the returns that each one prepared. Lecture SIX Outline Study Units 1 & 2 Review BUSN 7131 Which of the following is false regarding the filing of information returns concerning employees who prepare tax returns? A. Annual listings of preparers, identification numbers, and place of work are required for preparers who employ others to prepare returns. B. The period for which the information return is required is a 12-month period beginning July 1 of each year.

C. No information return is actually required to be submitted; a list is made and kept by the employing preparer. D. Information returns of income tax return preparers must be maintained by the preparer for 2 years. Penalties may be imposed on a tax return preparer for an understatement of tax liability because of a position for which there is not a reasonable belief that the position is more likely than not to be sustained on its merits. But the penalties may be excused if A. The preparer knew or should have known of the position. B. The position was disclosed. C. The understatement was unintentional. D.

There is reasonable cause and good faith. Study Unit 2 Dee is the owner of 12% of the shares of common stock of D&M Corporation that she acquired in Year 1. She is the treasurer and a director of D&M. The corporation registered its securities in Year 2 and made a public offering pursuant to the Securities Act of 1933. If Dee decides to sell part of her holdings in Year 9, the shares A. Would be exempt from registration because the corporation previously registered them within 3 years. B. Must be registered regardless of the amount sold or manner in which they are sold. C. Would be exempt from registration because she is not an issuer.

D. Must be registered if Dee sells 50% of her shares through her broker to the public. For an offering to be exempt under Regulation D of the Securities Act of 1933, Rules 505 and 506 each require that A. The SEC be notified within 10 days of the first sale. B. The offering be made without general advertising. C. All accredited investors receive the issuer's financial information. D. There be a maximum of 35 investors. Lecture SIX Outline Study Units 1 & 2 Review BUSN 7131 Under Regulation D of the Securities Act of 1933, which of the following conditions apply to private placement offerings?

The securities A. Cannot be sold for longer than a 6-month period. B. Cannot be the subject of an immediate unregistered reoffering to the public. C. Must be sold only to accredited institutional investors. D. Must be sold to fewer than 20 nonaccredited investors. Bird Corp. made a $5 million exempt common stock offering under Rule 505 of Regulation D of the Securities Act of 1933. Thus, the shares were restricted securities. As the issuer of restricted securities, Bird must A. Make a reasonable effort to determine that purchasers are buying for themselves and not for others.

B. Publicly advertise that the shares are not registered. C. Provide information to all purchasers as to how they can register their shares so that resale will be permitted. D. Apply to the SEC for contingent exemptions so that purchasers may resell their shares as exempt. What form must be filed with the Securities and Exchange Commission (SEC) by non-reporting and unseasoned issuers? A. Form S-1. B. Form 10-K. C. Form 8-K. D. Form S-3. The SEC's antifraud Rule 10b-5 prohibits trading on the basis of inside information of a business corporation's stock by A.

Officers and directors only. B. Officers, directors, and shareholders only. C. Officers, directors, and beneficial holders of 10% of the corporation's stock. D. Anyone who bases his/her trading activities on the inside information. Under the Securities Exchange Act of 1934, short-swing profits arise from the sale and purchase (purchase and sale) of the issuer's stock within A. 90 days. B. 180 days. C. 9 months. D. 1 year. You will do great things in your career. Stay positive. I have confidence in you. Best wishes, Your coach, Professor Myles Bassell.