1. For this lesson you are required to find information on ethics and write a 2 page essay. For this section of topic 30, you have

a. researched different sources on ethics.
b. prepared a two page essay.
c. e-mailed essay to  results@herasincometaxschool.com
d. all of the above.

2. A professional whom is in a good position to discover organizational wrongdoing because of their heavy involvement in their companies' planning and control processes.

a. an accountant.
b. an attorney.
c. a painter.
d. a doctor.

3. Some people, both inside and outside the profession, would view the accountant's decision to blow the whistle as

a. morally justifiable.
b. professionally justifiable.
c. harmful to the employing organization and would advise against doing so.
d. all of the above.

4. In cases where any part of the understatement of the liability is due to a willful attempt by the return preparer to understate the liability, or if the understatement is due to reckless or intentional disregard of rules or regulations by the preparer, the preparer is subject to a $1,000 penalty. 

a. $ 5,000 penalty.
b. 50% of income derived or to be derived.
c. $ 1,000 penalty.
d. Greater of A or B.

5.  Causes the greater amount of turmoil, creating an atmosphere of unpleasantness that may lead to retaliation against the whistleblower. 

a. Wrongdoing reporting.
b. Inside Snitching.
c. Internal Whistle-blowing.
d. External whistle-blowing.

6. A penalty will not be imposed on any part of an underpayment if there was reasonable cause for your position and you acted in good faith in taking that position. However, if you failed to keep proper books and records or failed to substantiate items properly, you

a. Can avoid the penalty by disclosure.
b. Cannot avoid the penalty by disclosure.
c. Cannot file Form 8275-R.
d. Should just pay the preparer penalty.

7. As a member of any of the professional organizations, the accountant in industry is expected to comply with their

a. Codes of ethical conduct.
b. Tax Prepare license.
c. law enforcement agencies.
d. California Board of Accountancy.

8. MAs have an obligation to the organizations they serve, their profession, the public, and themselves. The IMA, in its Standards of Ethical Conduct for Management Accountants, state that: "Management accountants have a responsibility to refrain from disclosing confidential information... to communicate unfavorable information..., and to disclose all relevant information..."                   

True False

9. The penalty for reckless or intentional disregard of a regulation may be avoided by disclosure only if the position represents a good faith challenge to the validity of the regulation and has a reasonable basis. Generally, the accurate-related penalty of any portion of a tax underpayment attributable to negligence or disregard of rules or regulations is

a. 10%.
b. 20%.
c. 40%.
d. 50%.

10. The AICPA's Code of Professional Conduct states that members should act with integrity, guided by the precept that when members fulfill their responsibility to best serve

a. the public interest.
b. their clients' interests.
c. employers' interests.
d. all of the above.

11. An understatement is the excess of the amount of tax required to be shown on the return over the amount of tax shown on the return for the tax year, reduced by any rebates. There is an substantial understatement if the amount of the understatement for any year exceeds

a. 10% of the tax required to be shown on the return for the tax year.
b. $5,000 ($10,000 for a corporation).
c. $10,000,000.
d. The greater of a or b.

12. Any individual engaged in limited practice before the IRS who is involved in disreputable conduct may be

a. Disbarred or suspended, or censured.
b. Dismissed.
c. Jailed.
d. Forced to meet with the IRS.

13. The following un-enrolled individual can represent the specified taxpayers before the IRS, provided this individual presents satisfactory identification.

a. A family member.
b. An Officer of a Corporation.
c. An employee representing employer.
d. All of the Above.

14. In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. If an individual loses eligibility to practice, his or her power of attorney

a. Torn into pieces.
b. Return to him by certified mail.
c. Will not be recognized by the IRS.
d. (As long as he files one) will be recognized by the IRS.

15. Negotiations of taxpayer refund checks. Practitioners who are income tax return preparers 

a. Can endorse any refund check issued to the taxpayer.
b. Must not endorse or otherwise negotiate (cash) any refund check issued to the taxpayer.
c. Can negotiate (cash) any refund check issued to the taxpayer.
d. Both a and c are correct.

16. Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust

a. is acceptable conduct if offense was committed in a state other than the one you practice in.
b. is alright as long as it does not directly involve your client.
c. is not considered disreputable conduct.
d. is considered disreputable conduct.

17. Who presides over a hearing on a complaint for disbarment based on a violation of the laws or regulations governing practice before the IRS?

a. The Commissioner of the IRS.
b. Office of Professional Responsibility.
c. A United States Tax Court Judge.
d. The Secretary of the Treasury.

18. An appeal from the initial decision ordering disbarment is made to which of the following:

a. The Secretary of the Treasury.
b. The Administrative Law Judge.
c. Office of Professional Responsibility.
d. The United States Tax Court.

19  Individuals can lose their eligibility to practice before the IRS by

a. Not meeting the requirements for renewal of enrollment (such as continuing professional education).
b. Requesting to be placed in an inactive retirement status.
c. Being suspended or disbarred by state authorities to practice as an attorney or certified public accountant.
d. All of the above.

20. If you are a paid tax return preparer and you do not want to disclose you social security number on returns you prepare, you can

a. Leave the space for the social security number blank.
b. Call the IRS and let them know you refuse to disclose your social security number.
c. Do not sign the tax return or enter any of your preparer information.
d. Fill out Form W-7P to apply for a preparer tax identification number (PTIN).

21. A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return,

a. Has the responsibility to advise the client promptly of the noncompliance.
b. Has the responsibility to advise the client of the consequences of the noncompliance.
c. Has to do what the client tells him to do even if it is against the law.
d. Both a and b are correct.

22. According to "What is Ethics" article, being ethical is clearly

a. A matter of following one's feelings.
b. Not a matter of following one's feelings.
c. Has to do with religious beliefs.
d. Doing what the law requires.

23. According to the "What is Ethics" article, ethics is the same as religion.        

True False

24. Our owns pre-Civil war slavery laws and the apartheid laws of present-day South Africa are

a. Examples of feeling of right and wrong.
b. Examples of religious beliefs.
c. Grotesquely obvious examples of laws that deviate from what is ethical.
d. All of the above.

25. Being ethical is not the same as doing "whatever society accepts". In any society, most people accept standards that are, in fact, ethical. An entire society can become ethically corrupt. According to the article, a good example of a morally corrupt society is

a. Drug problem in the American continent.
b. Nazi Germany.
c. The war in the Middle East.
d. All of the above.

26. According to the article, the following is what ethic is.

a. Well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness or specific virtues.
b. Those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud.
c.  The continuous effort of studying to ensure that we live up to standards that are reasonable and solidly-based.
d. All of the above.

27. Ethical standards include standards relating to rights, such as the right to life, the right to freedom from injury, and the right to privacy.                     

True False

28. The law often incorporates ethical standards to which most citizens subscribe. Therefore, being ethical is the same as following the law.                    

True False

29. Ethical norms tend to be broader and more informal than laws. Although most societies use laws to enforce widely accepted moral standards and ethical and legal rules use similar concepts, it is important to remember

a. That ethics and law are not the same.
b. That if an action is legal it is ethical.
c. That ethics and law are the same.
d. None of the above.

30.  Strive for honesty in all scientific communications. Honestly, report data, results, methods and procedures, and publication status. Do not fabricate, falsify, or misrepresent date. Do not deceive colleagues, granting agencies, or the public. This is an example of

a. Adopted specific code by different professional associations, government agencies, and universities have.
b. What ethics is.
c. What ethics is not.
d. None of the above.

31. Although codes, policies, and principles are very important and useful, like any set of rules, they do not cover every situation that arises in research, they often conflict, and they require considerable interpretation.               

True False

32. Defined as "a person who, for a fee, assists with or prepares tax returns for another person or who assumes final responsibility for completed work on a return on which preliminary work has been done by another person, or who holds himself or herself out as offering those services."

a. An attorney.
b. A notary public.
c. A tax preparer.
d. An insurance agent.

33.  The statute exempts the following person from holding a CTEC tax preparer license.

a. An individual with a current valid license issued by the California Board of Accountancy (and his or her employees while functioning within the scope of his or her employment).
b. An individual who is an active member of the State Bar of California (and his or her employees while functioning within the scope of his or her employment).
c. Enrolled Agents (and their employees while functioning within the scope of their employment).
d. Any of the above.

34. CTEC registered Tax preparers (CRTPs):

a. Must not obtain the signature of a client to a tax return or authorizing document, which contains blank spaces to be filled in after it has been signed.
b. Must cease doing business as a tax preparer upon cancellation or termination of bond until a new bond is obtained.
c. Must completion, on an annual basis, not less than 20-hours of continuing education from a CTEC approved provider (12 hours federal, 4 hours California, and 4 hours of either federal or California.
d. Any of the above.

35. When a person prepares a tax return, for a fee, without the appropriate lawful designation, he or she could be cited and fined up to

a. $  2,500 for each illegally prepared tax return.
b. $  5,000 for each illegally prepared tax return.
c. $ 1,000 for each illegally prepared tax return.
d. $ 15,000 for each illegally prepared tax return.

36. The Franchise Tax Board may notify CTEC when it identifies an individual who has violated the law. Then, CTEC may

a. Cite individuals preparing tax returns in violation.
b. Levy a fine of up to $ 5,000 per prepared return.
c. Issue a cease and desist order, which will remain in effect until the individual has come into compliance.
d. Any of the above.

37. If tax preparer fails to perform a duty specifically upon him or her pursuant to statute, any person may maintain an action for enforcement of those duties or to recover a civil penalty of

a. $ 2,500, or for both enforcement and recovery.
b. $ 5,000, or for both enforcement and recovery.
c. $ 1,000, or for both enforcement and recovery.
d. $ 15,000, or for both enforcement and recovery.

38. The Superior Court in and for the county in which any person acts as a tax preparer in violation of the provisions, may, upon a petition by any person, issue

a. license or other appropriate order to restore the misconduct.
b. an injunction or other appropriate order restoring the conduct.
c. a penalty to restore the misconduct.
d. information to a surety company for a tax preparer to obtain a bond.

39. Violators of other sections of the statute are guilty of a misdemeanor, which is fine not exceeding $1,000, or by imprisonment in a county jail for not more than one year, or by both.                         

True False

40. A declaration, statement, refund amount, or other document required to be made or filed in connection with state or federal income taxes or state bank and corporation franchise taxes.

a. an injunction or other appropriate order.
b. a certificate of completion.
c. a tax return.
d. a tax preparer bond.