26. Which of the following persons is subject to tax return preparer penalties for the return(s) mentioned?

a. Meredith is the director of Federal taxes for a C corporation, and prepares her mothers return for $50.

b. Sammy is a volunteer who prepares returns at the retirement home under the IRS Tax Counseling for the Elderly program.

c. Abbie prepares her mothers tax returns for free. A CPA, Abbie would charge a client $750 for completing a similar return.

d. Lizzie, a tax return preparer companys administrative assistant, makes copies of returns and assembles the returns.

e. John, the head of a corporations accounting department, prepares the corporation's return.

27. Mikel prepared for compensation a Federal income tax return for Mona. Monas return included an aggressive interpretation of the rules concerning the home office deduction. Mikel is not liable for a preparer penalty for taking an unreasonable tax return position if:

a. The tax reduction attributable to the disputed deduction did not exceed $5,000.

b. Mona is assessed her own penalty for an understatement of tax due to disregard of IRS rules.

c. The IRS found that the disputed deduction was frivolous, but Mona disclosed the position in an attachment to the return.

d. There was a reasonable basis for Monas interpretation of the home office deduction rules, and Mona disclosed the position in an attachment to the return.

e. Mona pays the additional tax assessed by the IRS without protest.

28. When the taxpayer has not paid a tax assessment to the Treasury, the IRS can do the following without needing court approval:

a. Foreclose on the taxpayers house.

b. Force the taxpayer to sign an Offer in Compromise.

c. Garnish the taxpayers wages.

d. The IRS can do all of the above without court approval.

e. The IRS can do none of the above without court approval.