Answer the following questions using the SSTSs or Circular 230. For each question cite the Standard or page number and section number of Circular 230 for which your answer is based upon. (Member means tax preparer.)

T/F

______ 1. A member may recommend a tax return position

reflecting a position that the tax payer knows

could exploit the audit selection process of a

taxing authority.

SSTS: _________________________________________

______ 2. A member should not recommend a tax return

position unless the member has a good-faith belief that the position has at least a realistic possibility of being sustained administratively or judicially on its merits if challenged.

SSTS: ___________________________________________

______ 3. A member cannot take a different position on a tax matter that has been determined in administrative proceeding or court decision.

SSTS: ___________________________________________

______ 4. A member may give tax advise orally or in writing and the subject matter may range from routine or complex. There is no standard format or guidelines for communicating or documenting advice to the taxpayer.

SSTS: ___________________________________________

______ 5. All tax return prepared by a member should be prepared based on a taxpayers representation of facts, and the taxpayer has the final responsibility for positions taken on the return.

SSTS: ___________________________________________

______ 6. A member does not have to advise the taxpayer regarding potential penalty consequences of such tax return position and the opportunity, if any, to avoid such penalties through disclosure.

SSTS: ___________________________________________

______ 7. A member is not under the obligation to inform a taxpayer of an error in a previously filed return.

SSTS: ___________________________________________

______ 8. Tax advice given to a taxpayer should be considered by the preparer when relevant as to any potential penalty consequences of the return position.

SSTS: ___________________________________________

______ 9. A member has an obligation to communicate with a taxpayer when subsequent developments that affect any advice previously provided with respect to significant matters and assist the taxpayer in implementing procedures or plans associated with the subsequent developments.

SSTS: ___________________________________________

______ 10. A member is required to examine underlying documentation and must keep in his files supporting data furnished by the taxpayer for return information for income and deductions arising from security transactions and from pass-through entities.

SSTS: ___________________________________________

______ 11. A member should make use of a taxpayers returns for one or more prior-years in preparing the current return whenever feasible.

SSTS: ___________________________________________

______ 12. A preparer may use approximations based on professional judgment in preparing a tax return.

SSTS: ___________________________________________

______ 13. Disclosure of estimates is always required on returns that the preparer has used such estimates.

SSTS: ___________________________________________

______ 14. A member should not recommend a different position from a prior years return even though court decisions, rulings or other authorities more favorable to a different position have occurred since the prior returns filing.

SSTS: ___________________________________________

______ 15. If a member is requested to prepare the current years return and the taxpayer has not taken appropriate action to correct an error in a prior years return, the member cannot continue with the engagement.

SSTS: ___________________________________________

______ 16. If a member is representing a taxpayer in an administrative proceeding with respect to a return that contains an error of which the member is aware, the member should request the taxpayers agreement to disclose the error to the taxing authority.

SSTS: ___________________________________________

______ 17. Whether an error has no more than an insignificant effect on the taxpayers liability if left to the professional judgment of the member based on all the facts and circumstances known to the member.

SSTS: ___________________________________________

______ 18. The cumulative effect of an error has not bearing on whether or not an error is insignificant or not.

SSTS: ___________________________________________

______ 19. When preparing a tax return, a member should consider information actually known to the member from the tax return of another taxpayer if the information is relevant to that tax return and its consideration is necessary to properly prepare that tax return.

SSTS: ___________________________________________

______ 20. A member shall make a reasonable effort to obtain from the taxpayer the information necessary to provide appropriate answers to all questions on a tax return before signing as preparer.

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 taxpayers 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: ___________________________________________

______ 41. In general, a practitioner must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her Federal tax obligations unless the client has not paid the reasonable fee for services furnished by the practitioner, state law withstanding.

203: ___________________________________________

______ 42. In all cases, a practitioner must allow the client access to review or copy any records of the client retained by the practitioner to comply with his or her Federal tax obligations.

230: ___________________________________________

______ 43. Disbarment or suspension of practice as an attorney automatically gives authority to the Secretary of the Treasury to suspend, or disbar any practitioner from practice before the Internal Revenue Service.

230: ___________________________________________

______ 44. A practitioner who for compensation prepares or assists with the preparation of all or substantially all of a tax return must have a preparer tax identification number.

230: ___________________________________________

______ 45. Using abusive language with an employee of the Internal Revenue Service is grounds for suspension to practice before the Internal Revenue Service.

230: ___________________________________________

______ 46. Filing a frivolous return is grounds for being penalized by the Internal Revenue Service.

230: ___________________________________________

______ 47. A practitioner may not use or disclose any return information without the consent of the taxpayer in any situation.

230: ___________________________________________

______ 48. A practitioner may advise a client to submit a document, affidavit, or other paper to the IRS if it contains information that demonstrates an intentional disregard of a rule or regulation unless it, in conjunction with other documentation, in good faith, challenges the rule or regulation.

230: ___________________________________________

______ 49. A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service.

230: ___________________________________________

______ 50. A practitioner may not represent two separate clients if the representation of one will adversely affect the position of the other.

230: ___________________________________________