QUESTION 4

If a tax return preparer knows (or reasonably should know) that an understatement on the taxpayer's return is due to an "unrealistic position," the preparer is subject to a penalty equal to

	A.	$5,000 or 75% of the gross income derived from preparing the return
	B.	the greater of $1,000 or 100% of the gross income derived from preparing the return
	C.	the greater of $1,000 or 50% of the advisor's fees derived from preparing the return.
	D.	$1,000

QUESTION 5

Does the IRS need to comply with the requirements of 7604(f) if a summons serves the dual purposes of investigating both a named taxpayer & unnamed taxpayer provided that the information sought is relevant to a legitimate investigation of the summoned taxpayer?

On 8/13 it was determined there is a typographical error and the above code section should read 7609(f)

Yes No

QUESTION 6

If the taxpayer files an amended return, the statute of limitations for assessment

		A. is extended for two years after the date of filing the amended return.
		B. is the later of 3 years from the date of filing the return or two years after the payment of tax
		C. Is open indefinitely because the return is considered fraudulent as originally filed.
	D.	is based upon the date of filing the original return