4. Which of the following is considered a tax return preparer?

a. A neighbor who assists in the preparation of a depreciation schedule.

b. A son who enters tax return information into a computer program and prints a return.

c. A woman who prepares tax returns in her home during filing season and accepts payment for her services.

d. A volunteer at a local church who prepares tax returns but accepts no payment.

NEW

5. Tax preparers are prohibited from

a. advertising their services.

b. offering other services, such as bookkeeping, in addition to tax preparation.

c. offering discounts to repeat customers.

d. negotiating their clients refund checks.

NEW

6. Sarah, a tax preparer, is reviewing the prior year return of a new client, she discovers a mistake that resulted in an understatement of the clients tax liability for that year. She should

a. report the matter to the IRS.

b. refuse to accept the new client.

c. advise the client that an amended return should be prepared.

d. include the unpaid amount in her calculation of this years tax.

NEW

7. Which of the following cannot be included in a tax preparers advertising?

a. The preparers professional credentials, such as CPA, EA, etc.

b. Areas of specialization, such as farm returns

c. The availability of e-filing services

d. The names of some of the preparers more prominent clients