b. gathering the financial information necessary to report taxable income
f f f f f f f f
c. representing a taxpayer at an IRS audit f f f f f f
d. all of these are correct
f f f f
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice f f
HAS VARIABLES: False
f
DATE CREATED: 3/30/2017 11:37 AM
f f f
DATE MODIFIED: 4/20/2017 2:12 PM
f f f
2. Tax evasion is:
f f
a. a fraudulent act involving illegal nonpayment of taxes
f f f f f f f
b. one of the objectives of tax planning
f f f f f f
c. an act of deferring tax payments to future periods
f f f f f f f f
d. the same as tax avoidance as both of them result in nonpayment of taxes
f f f f f f f f f f f f f
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice f f
HAS VARIABLES: False
f
DATE CREATED: 3/30/2017 11:37 AM
f f f
DATE MODIFIED: 3/30/2017 11:37 AM
f f f
3. Tax litigation is a process of:
f f f f f
a. participating in an administrative audit f f f f
b. settling tax-related disputes in a court of law
f f f f f f f
c. filing amended tax returns as prescribed by tax laws
f f f f f f f f
d. arranging a taxpayer’s affairs to minimize tax liabilitiesf f f f f f f
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice f f
HAS VARIABLES: False
f
DATE CREATED: 3/30/2017 11:37 AM
f f f
DATE MODIFIED: 3/30/2017 11:37 AM
f f f
4. Regarding open transactions, which of the following statements is INCORRECT?
f f f f f f f f f
a. The transaction is not yet completed.
f f f f f
b. The practitioner can suggest changes to achieve a better tax result.
f f f f f f f f f f
c. A tax practitioner has some degree of control over the client’s tax liability.
f f f f f f f f f f f f
d. The practitioner can fix the problem by amending the client’s tax return.
f f f f f f f f f f f
Copyright fCengage fLearning. fPowered fby fCognero. Page f1
, Chapter 1 f
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: f Multiple Choice f
HAS VARIABLES:
f False
DATE CREATED:
f 3/30/2017 11:37 AM f f
DATE MODIFIED:
f 4/20/2017 3:15 PM f f
5. Which of the following statements best describes Circular 230?
f f f f f f f f
a. Circular 230 has been adopted by the AICPA as its set of rules of practice for CPAs.
f f f f f f f f f f f f f f f f
b. Circular 230 is a set of Treasury Department ethical and legal standards for those engaging in practice before
f f f f f f f f f f f f f f f f f
the IRS.
f f
c. Circular 230 is a set of internal rules at the IRS designed to protect tax practitioners from unfair discipline by
f f f f f f f f f f f f f f f f f f f
the IRS.
f f
d. Circular 230 is a set of ethical rules for taxpayers.
f f f f f f f f f
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice f f
HAS VARIABLES: False
f
DATE CREATED: 3/30/2017 11:37 AM
f f f
DATE MODIFIED: 3/30/2017 11:37 AM
f f f
6. Who can represent a taxpayer before the IRS Appeals Office under Circular 230?
f f f f f f f f f f f f
a. a CPA f
b. an officer of a corporation may represent the corporation
f f f f f f f f
c. an attorney f
d. all of these are correct
f f f f
e. both a CPA and an attorney f f f f f
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice f f
HAS VARIABLES: False
f
DATE CREATED: 3/30/2017 11:37 AM
f f f
DATE MODIFIED: 4/20/2017 3:19 PM
f f f
7. In a closed transaction, the scope of tax planning is:
f f f f f f f f f
a. more limited as compared to an open transaction
f f f f f f f
b. limited by the IRS rules of practice f f f f f f
c. limited to presenting the taxpayer’s facts to the government in the most favorable, legal manner
f f f f f f f f f f f f f f
d. more limited as compared to an open transaction and limited to presenting the taxpayer’s facts to the
f f f f f f f f f f f f f f f f
government in the most favorable, legal manner
f f f f f f f
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