During conversations with the IRS, Tyler, who is an enrolled agent, often becomes emotional

to the point of verbal abuse. Which of the following is incorrectly listed as a possible cause

for an attorney, certified public accountant, enrolled agent, or enrolled actuary to be disbarred

or suspended from practice before the Internal Revenue Service?

a) Conviction of any criminal offense under the revenue laws of the United States, or of any

offense involving dishonesty or breach of trust

b) Misappropriation of, or failure to properly and promptly remit, funds received from a client

for the purpose of payment of taxes or other obligations due the United States

c) Contemptuous conduct in connection with practice before the Internal Revenue Service,

including the use of abusive language, making false accusations and statements knowing

them to be false, or circulating or publishing malicious or libelous matter

d) The preparation of a tax return, based on and using only the taxpayer's records, receipts,

and information that is later deemed by the Internal Revenue Service to be fraudulent

Jenny is a paid tax preparer. In addition to preparing a client's return, she has many other

responsibilities, such as keeping accurate records. Which of the following is a true statement?

a) Paid tax preparers are not required to keep records of taxpayer returns.

b) Paid tax preparers are required to retain copies of returns prepared or to maintain a list

including the name and taxpayer identification number of every client for whom a return

was prepared.

c) Paid tax preparers are required to maintain a list of their clients which contains taxpayer

identification numbers only.

d) Paid tax preparers are required to keep a list of their clients and who their tax preparer was

in past years.

Mason received a letter from the IRS indicating that his federal income tax was understated by

$10,000. His corrected tax is $35,000. If Mason can't provide adequate disclosure and a

reasonable basis for the understatement, how much penalty will he have to pay?

a) $ 500

b) $2,500

c) $7,500

d) $2,000