ExpertHard1 markMultiple Choice
CPA · Question 04 · Area I: Ethics & Tax Procedures
Which of the following scenarios would most likely result in the assessment of a penalty for failure to sign a tax return under IRC §6695?
Which of the following scenarios would most likely result in the assessment of a penalty for failure to sign a tax return under IRC §6695?
Answer options:
A.
A paid preparer with primary responsibility for the overall accuracy of the return fails to sign the return.
B.
A preparer who only provided advice on a specific legal issue but did not prepare the schedule fails to sign.
C.
An employee who prepares a return for their employer fails to sign the return.
D.
A volunteer preparing a return for a VITA clinic fails to sign.
How to approach this question
Identify who qualifies as a 'tax return preparer' required to sign: a paid individual with primary responsibility.
Full Answer
A.A paid preparer with primary responsibility for the overall accuracy of the return fails to sign the return.✓ Correct
A
IRC §6695(b) imposes a penalty on a tax return preparer who is required to sign a return but fails to do so. This applies to the individual with primary responsibility for the overall accuracy of the return.
Common mistakes
Thinking employees preparing returns for their company are subject to preparer penalties.
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