22. Judy is preparing a clients return. The client is claiming EIC, CTC/ACTC/ODC, and AOTC. Which of the following best describes the actions Judy must take to substantiate the clients eligibility for the credits?

a) Complete Form 8867, Paid Preparers Due Diligence Checklist, and submit it to the IRS with the taxpayers tax return.

b) Judy must ask additional questions and document the taxpayers answers to those questions and keep copies of any of the taxpayers documents that were used to determine the eligibility for the EIC, CTC/ACTC/ODC, and AOTC.

c) Judy must complete the EIC worksheet, CTC/ACTC/ODC worksheets, and the AOTC worksheet in the Form 1040 Instructions.

d) Judy is required to complete Form 8867, the EIC worksheet, CTC/ACTC/ODC, and AOTC worksheets. Judy is also expected to ask additional questions and document the taxpayers answers. Copies of documentation provided by the taxpayer should be kept substantiating eligibility for the EIC, CTC/ACTC/ODC, and AOTC and how it was determined by the preparer.

23. Thomas completed Bettys 2020 tax return on May 17, 2021. He must retain Bettys records until which of the following dates?

a) May 17, 2024

b) May 17, 2022

c) May 17, 2023

d) December 31, 2024

24. Kay has worked with Hunter as a tax preparer for several years. Ellen has been a client of Hunters for several years. Kay has always checked Ellens return for accuracy after Hunter prepares the return. Recently, Kay discovered proof that indicates that Ellen has omitted information for use in her tax preparation. How should Kay handle this situation?

a) Kay is obligated to notify Hunter immediately of her discovery, and Hunter is then obligated to notify Ellen that amended returns should be submitted with correct information.

b) Since Ellen is Hunters client, Kay has no obligation to do anything.

c) Kay should contact the IRS immediately.

d) Kay should call the police.

25. Tonys tax instructor emphasizes the importance of keeping confidential any information used to prepare clients returns. Which of the following would not be considered a violation of the disclosure laws?

a) Leaving client files in view of another client

b) Asking a fellow associate to assist with the preparation of a return

c) Telling your spouse that you prepared his bosss tax return

d) Reviewing your client database to determine which clients you will contact to offer financial