Introduction: The Internal Revenue Service (IRS) has a wide range of functions and responsibilities such as look after of administration of federal taxes, and to perform duties like estimating, determining, and collecting taxes in the form of revenue to the government, it also performs tax return audits and imposes penal provisions. It is the office within the revenue department. The task of the department is to provide the taxpayers with quality service by assisting them in proving knowledge content so the taxpayers understand their tax responsibility and pay taxes timely. It is important in maintaining and establishing tax laws.
To choose: The tax preparers who will not present themselves as tax representative in all proceedings of the IRS.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
Income Tax Fundamentals 2020
- Which of the following have privileged communication with a client in a noncriminal tax matter? CPAs Enrolled agents Attorneys a and a, b, and carrow_forwardPlease choose one of the duties of a tax professional practicing before the IRS, discussed in the Treasury Department Circular 230 and: Describe the concepts and objectives of the duty. Discuss how a tax professional needs to conduct themselves in order to comply with the responsibility. Explain what kind of challenges and pressure an accountant could face in complying with the responsibility.arrow_forwardWhich of the following statements is the most correct regarding The Taxpayer Bill of Rights? a.It states that a taxpayer is responsible for payment of only the correct amount of tax due, no more, no less. b.It explains the examination, appeal, collection, and refund process. c.It directs taxpayers to other IRS publications with more details on specific taxpayer rights. d.All of these statements are correct. e.None of these statements are correct.arrow_forward
- All tax practitioners who prepare tax returns for a fee are subject to whichof the following?I. IRS Circular 230 II. AICPA Code of Professional Conduct III. Statements on Standards for Tax Services IV. American Bar Association Code of Professional Conduct Only statement I is correct.Statements I, II, and III are correct.Statements II and III are correct. Statements II and IV are correct. Statements I, II, III, and IV are correct.arrow_forwardWhich of the following are not deductible by a CPA who prepares tax returns? a. Subscription to the Kiplinger Tax letter b. Subscription to CCH service online c.Dues to the country club to entertain clients d. Dues to the California Society of CPAsarrow_forwardWhich of the following is a compliance tool the IRS utilizes to address the tax gap? Compliance checks. Correspondence examinations. Discovery services. Processing and investigating unsolicited amended returns.arrow_forward
- Under what circumstances would you gather tax information from the IRS web site?arrow_forwardChoose the response that correctly states the maximum penalty the IRS can assess against a paid tax return preparer who fails to satisfy the due diligence requirements when preparing a return for an individual claiming the following tax benefits:arrow_forwardIs the IRS appearing to be socially responsible when it excludes from gross income, living expenses, property damage and funeral expenses tied to Disaster Relief, employer payments to deceased employees surviving family members, insurance proceeds for the terminally ill and other similar considerations? Is there some underlying purpose for offering exclusions to taxpayers?arrow_forward
- In general, the answer to all tax questions or issues must be traced to: A. Supreme Court Decision B. an IRS letter ruling C. a tax text book D. the Internal Revenue Codearrow_forwardIndicate whether the following statements are "True" or "False" regarding letter rulings. a. Letter rulings have the force and effect of law and provide guidance and support for taxpayers in similar transactions. b. A letter ruling represents the current opinion of the IRS on the tax consequences of a transaction with a given set of facts. c. Letter rulings not only help promote a uniform application of the tax laws but also may reduce the potential for litigation or disputes with IRS agentarrow_forwardDefine the term the IRS? What are the guidelines of the IRS?arrow_forward