Sybil, a tax return preparer, charged a taxpayer $600 to prepare his income tax return that claimed a $5,000 refund based on an unreasonable position To what penalty is she subject if she knew the position was unreasonable but it was determined NOT to be the result of her willful and reckless conduct A) $300 B) $600 C) $1,000 D) $5,000 As an alternative to using the actual expense method of determining a home office deduction, a taxpayer may elect to use A) the declining balance method B) the historical use method C) the simplified method D) the average annual use method A designated beneficiary of an ABLE account must be in order to meet the special rules that apply to the increased contribution limit authorized under the Tax Cuts and Jobs Act A) an employee for whom no contribution is made for the taxable year to a defined contribution, TSA or section 457 deferred compensation plan B) terminally ill C) age 55 or older D) on public assistance Which of the following 2023 elementary school expenses, if any, is considered a qualified education expense under a Section 529 Tuition Savings Plan A) Expenses for needed books and supplies B) Expenses for tuition C) Expenses for room and board D) No elementary school expenses are considered qualified expenses under a Section 529 plan Peter, a tax return preparer, was found to have taken an unreasonable position with respect to a client's prepared tax return that understated the taxpayer's tax liability, and the preparer should have known it was unreasonable If the preparer's conduct was considered willful or reckless, for what minimum penalty, if any, would he be liable A) $250 B) $530 C) $1,000 D) Greater of $5,000 or 75 of income derived by preparer Alan, a married taxpayer who lives with his spouse, files his tax return as married filing separately What base amount applies in connection with determining the taxability of his Social Security benefits A) $0 B) $16,000 C) $25,000 D) $32,000 Harriet, owner of an advertising agency, routinely entertains prospective business clients at the country club she belongs to How much of the $20,000 annual country club dues can she deduct as a business expense in 2023 A) $20,000 B) $10,000 C) $5,000 D) $0

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Sybil, a tax return preparer, charged a taxpayer $600 to prepare his income tax return that claimed a $5,000 refund based on an unreasonable position.

Sybil, a tax return preparer, charged a taxpayer $600 to prepare his income tax return that claimed a $5,000 refund based on an unreasonable position. To what penalty is she subject if she knew the position was unreasonable but it was determined NOT to be the result of her willful and reckless conduct?

A)	$300.
B)	$600.
C)	$1,000.
D)	$5,000.

As an alternative to using the actual expense method of determining a home office deduction, a taxpayer may elect to use:

A)	the declining balance method.
B)	the historical use method.
C)	the simplified method.
D)	the average annual use method.

A designated beneficiary of an ABLE account must be ___________ in order to meet the special rules that apply to the increased contribution limit authorized under the Tax Cuts and Jobs Act?

A)	an employee for whom no contribution is made for the taxable year to a defined contribution, TSA or section 457 deferred compensation plan.
B)	terminally ill.
C)	age 55 or older.
D)	on public assistance.

Which of the following 2023 elementary school expenses, if any, is considered a qualified education expense under a Section 529 Tuition Savings Plan?

A)	Expenses for needed books and supplies.
B)	Expenses for tuition.
C)	Expenses for room and board.
D)	No elementary school expenses are considered qualified expenses under a Section 529 plan.

Peter, a tax return preparer, was found to have taken an unreasonable position with respect to a client's prepared tax return that understated the taxpayer's tax liability, and the preparer should have known it was unreasonable. If the preparer's conduct was considered willful or reckless, for what minimum penalty, if any, would he be liable?

A)	$250.
B)	$530.
C)	$1,000.
D)	Greater of $5,000 or 75% of income derived by preparer.

Alan, a married taxpayer who lives with his spouse, files his tax return as married filing separately. What base amount applies in connection with determining the taxability of his Social Security benefits?

A)	$0.
B)	$16,000.
C)	$25,000.
D)	$32,000.

Harriet, owner of an advertising agency, routinely entertains prospective business clients at the country club she belongs to. How much of the $20,000 annual country club dues can she deduct as a business expense in 2023?