Question

T/F   

______ 21.    A member may omit answering a question on a tax return if reasonable grounds exist for omitting the answer to a question applicable to the taxpayer.

SSTS: ___________________________________________

______ 22. A member should not omit an answer to a question because it might prove disadvantageous to the taxpayer.

SSTS: ___________________________________________

______ 23.   If reasonable grounds do not exist for omission of an answer to an applicable question, a taxpayer is not required to provide on the return an explanation of the reason for the omission.

SSTS: ___________________________________________

______ 24. A member shall make a reasonable effort to obtain from the taxpayer that the taxpayers has maintained books and records or substantiating documentation to support reported deduction or tax treatments of items on a tax return.   SSTS: ___________________________________________

______ 25. A member can use estimates if fire, computer failure, or natural disaster has destroyed the taxpayer’s records.

SSTS: ___________________________________________

______ 26. A practitioner may endorse or otherwise negotiate any check issued to a client if the client has authorized the practitioner to do so.

230: ___________________________________________

______ 27. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in preparation of a submission to the Internal Revenue Service.

230: ___________________________________________

_____ 28. An enrolled agent has the same ability to practice before the Internal Revenue Service as does an attorney or CPA.

       230: ___________________________________________

______ 29. Practice before the Internal Revenue Service include preparing documents, filing documents, corresponding and communicating with the Internal Revenue Service and representing a client at conferences, hearings, and meetings.

230: ___________________________________________

______ 30. Enrolled Agents, enrolled retirement plan agents, and registered tax return preparers must renew their status with the Internal Revenue Service to maintain eligibility to practice before the IRS.

230: ___________________________________________

31. A CPA may be denied to practice before the IRS if he or she has not filed their own individual income tax returns.

230: ___________________________________________

______ 32. An employee of the Mississippi Department of Revenue may not practice before the Internal Revenue Service if such employment may disclose facts or information applicable to Federal tax matters.

230: ___________________________________________

______ 33. In order to practice before the Internal Revenue Service, an individual must be twenty-one years old.

230: ___________________________________________

______ 34. An individual must pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent.

230: ___________________________________________

______ 35. An enrolled agent must complete a minimum of 72 hours of continuing education credit during an enrollment cycle with a minimum of 16 during each enrollment year.

230: ___________________________________________

______ 36. An enrolled agent must complete two hours of ethics or professional credit each enrollment year.

230: ___________________________________________

______ 37. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of such noncompliance, error, or omission.

230: ___________________________________________

______ 38. A practitioner should always exercise due diligence in determining the correctness or oral or written representations made by the practitioner to the Department of the Treasury.

230: ___________________________________________

______ 39. A practitioner should not publish the availability of a written schedule of fees and disseminate since it may be considered to be advertising.

230: ___________________________________________

______ 40. A practitioner should refrain from any type of advertising.

230: ___________________________________________

Answer 1

21. True

Explanation: A member can omit answering a question on a tax return if reasonable grounds and exist and a proper explanation for omitting the answer is provided.

22. True

Explanation: A member cannot omit an answer to a question just because it might prove disadvantageous to the taxpayer.

23. False

Explanation: A member can omit answering a question on a tax return if reasonable grounds and exist and a proper explanation for omitting the answer is provided. If reasonable grounds not exist, taxpayer is required to provide a proper explanation.

24. True

Explanation: It is the duty of the member to make a reasonable effort to obtain from the taxpayer that the taxpayers has maintained books and records or substantiating documentation to support reported deduction or tax treatments of items on a tax return

25. True

Explanation: A member can use estimates if the taxpayer’s records in relation to books of accounts had been destroyed due to fire, computer failure, or natural disaster

26. True

Explanation: A practitioner can endorse or otherwise negotiate any check issued to a client if the client has authorized the practitioner to do so. However, practitioner cannot misuse the authorization given by the client for its own purpose.

27. True

Explanation: It is the duty of the tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in preparation of a submission to the Internal Revenue Service.

28. False

Explanation: An enrolled agent has fewer areas to practice before the Internal Revenue Service as compared to an attorney or CPA

29. True

Explanation: Practice before the IRS includes various areas such as preparing documents, filing documents, corresponding and communicating with the Internal Revenue Service and representing a client at conferences, hearings, and meetings.

30. True

Explanation: Enrolled Agents, enrolled retirement plan agents, and registered tax return preparers must renew their status with the Internal Revenue Service by filing specified form and fees to maintain eligibility to practice before the IRS.

31. True

Explanation: A CPA must filed their own individual income tax returns in order to practice otherwise the authority may denied to practice before the IRS if he or she has not.

32. True

Explanation: An employee of the Mississippi Department of Revenue may not practice before the Internal Revenue Service if such employment may disclose facts or information applicable to Federal tax matters. Because it will leads to disclose key information related to the IRS.

33. True

Explanation: An individual must be twenty-one years old in order to practice before the Internal Revenue Service,

34. True

Explanation It is mandatory for an individual to pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent..

35. True

Explanation: A enrolled agent must obtain minimum of 72 hours per enrollment cycle (every three years). Additionally they must also obtain minimum of 16 hours of continuing education including 2 hours of ethics or professional conduct each enrollment year.

36. True

Explanation: A enrolled agent must obtain minimum of 72 hours per enrollment cycle (every three years). Additionally they must also obtain minimum of 16 hours of continuing education including 2 hours of ethics or professional conduct each enrollment year.

37. True

Explanation: A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, must advise the client promptly of such noncompliance, error, or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States.

38. True

Explanation: It is the moral duty of the practitioner to exercise due diligence in determining the correctness or oral or written representations made by the practitioner to the Department of the Treasury.

39. False

Explanation: A practitioner may publish the availability of a written schedule of fees and disseminate. And it will not be considered as advertising.

40. False

Explanation: A practitioner should refrain from advertising containing false, fraudulent or misleading statement.