▪ Confidentiality
▪ Due diligence
▪ Conflicts of interest
▪ Best practices
New Question for 2014
A score of 100%
Question A1
Under what circumstances may a tax preparer who prepares federal tax returns endorse or otherwise negotiate a client's federal tax refund check?
- A tax preparer may cash a federal tax refund check if the client endorses the check and grants power of attorney on Form 2848.
- XXX No circumstances exist that allow a tax preparer to endorse or otherwise negotiate a client's federal tax refund check.
- A tax preparer may endorse and cash a federal tax refund check if the amount of the check is less than $100 and the client has no bank account.
- A tax preparer, who is authorized to represent taxpayers, may endorse and cash a federal tax refund check for a client.
Question A2
Which of the following is NOT one of the four requirements for a Tax Professional to meet the EITC due diligence requirement?
- XXX Proof of relationships claimed
- Completion of an eligibility checklist
- Computation of the credit
- Satisfaction of the knowledge requirement
Question A3
Pete, who is unmarried and wants to claim EITC, is 18-years-old and has a two-year-old daughter. They both live with his parents. Pete earned $3,000 from a part-time job. Logically, what is the first EITC-related question to ask him?
- XXX When did you live with your parents?
- When did your daughter live with you?
- Where is the child's mother?
- Were you a full-time student?
Question A4
Which of the following is NOT an example of tax preparation due diligence? Taking reasonable steps to:
- Assure that all income is reported on a tax return.
- Assure that the taxpayer meets all required criteria for claiming dependency exemptions.
- Provide tax returns to clients before filing deadlines.
- XXX Enter your PTIN on the return that you sign
Question A5
A Tax Professional asks probing questions to protect:
- Only the taxpayer
- Only H&R Block and the Tax Professional
- Only the Tax Professional
- XXX The taxpayer, the Tax Professional, and H&R Block