USCPA模拟题：REG科目选择题练习及解析（三十四）

Lawson, a CPA, discovers material noncompliance with a specific Internal Revenue Code (IRC) requirement in the prior-year return of a new client. Which of the following actions should Lawson take?

a. Wait for the statute of limitations to expire.

b. Contact the IRS and discuss courses of action.

c. Contact the prior CPA and discuss the client's exposure.

d. Discuss the requirements of the IRC with the client and recommend that client amend the return.

Tax return preparers can be subject to penalties under the Internal Revenue Code for failure to do any of the following, except:

a. Provide a client with a copy of the tax return.

b. Disclose a conflict of interest.

c. Keep a record of returns prepared.

d. Sign a tax return as a preparer.

In which of the following circumstances does the three-year statute of limitations on additional tax assessments apply?

a. A taxpayer willfully attempts to evade tax in filing income tax returns.

b. The IRS files a substitute income tax return when it learns that a taxpayer failed to file a return.

c. A taxpayer inadvertently omits from gross income an amount in excess of 25% of the gross income stated on the income tax return.

d. A taxpayer inadvertently overstates deductions equal to 15% of gross income.

1.Lawson, a CPA, discovers material noncompliance with a specific Internal Revenue Code (IRC) requirement in the prior-year return of a new client. Which of the following actions should Lawson take?

a. Wait for the statute of limitations to expire.

b. Contact the IRS and discuss courses of action.

c. Contact the prior CPA and discuss the client's exposure.

d. Discuss the requirements of the IRC with the client and recommend that client amend the return.

Explanation

Choice "d" is correct. The CPA should notify the client concerning the noncompliance and recommend the proper course of action.

Choice "a" is incorrect. The CPA is required to notify and discuss the situation with the client.

Choice "b" is incorrect. The CPA must discuss the situation with the client and is barred from contacting the IRS without the client's permission.

Choice "c" is incorrect, based on the above explanation.

2.Tax return preparers can be subject to penalties under the Internal Revenue Code for failure to do any of the following, except:

a. Provide a client with a copy of the tax return.

b. Disclose a conflict of interest.

c. Keep a record of returns prepared.

d. Sign a tax return as a preparer.

Explanation

Choice "b" is correct. With respect to a tax return preparer's failure to disclose a conflict of interest, the Internal Revenue Code does not set forth any penalty.

Choice "d" is incorrect. With respect to a tax return preparer's failure to sign a tax return as a preparer, the Internal Revenue Code sets forth a penalty of $50 for each failure (maximum $25,000 per calendar year).

Choice "a" is incorrect. With respect to a tax return preparer's failure to provide a client with a copy of the tax return, the Internal Revenue Code sets forth a penalty of $50 for each failure (maximum $25,000 per calendar year).

Choice "c" is incorrect. ?With respect to a tax return preparer's failure to keep a record of returns prepared, the Internal Revenue Code sets forth a penalty of $50 for each failure (maximum $25,000 per calendar year).

3. In which of the following circumstances does the three-year statute of limitations on additional tax assessments apply?

a. A taxpayer willfully attempts to evade tax in filing income tax returns.

b. The IRS files a substitute income tax return when it learns that a taxpayer failed to file a return.

c. A taxpayer inadvertently omits from gross income an amount in excess of 25% of the gross income stated on the income tax return.

d. A taxpayer inadvertently overstates deductions equal to 15% of gross income.

Explanation

Choice "d" is correct. With respect to a timely filed return, the general rule is that the IRS can assess additional tax within three years from the later of the return's due date (plus extensions, if any) or the date the return was filed. A taxpayer's inadvertently overstating deductions in an amount equal to 15% of gross income will not trigger any of the exceptions to the general rule.

Choice "a" is incorrect. There is no statute of limitations when a taxpayer willfully attempts to evade tax in filing income tax returns.

Choice "c" is incorrect. A six year statute of limitations applies when a taxpayer omits from gross income an amount in excess of 25% of the gross income stated on the income tax return. For purposes of the "six year" statute, gross income is not reduced by cost of goods sold.

Choice "b" is incorrect. There is no statute of limitations when the IRS files (actually, "executes") a substitute income tax return when the IRS learns that a taxpayer failed to file a return.