Answer the following questions using the SSTSs or Circular 230. For each question cite the Standard or page number and section number of Circular 230 for which your answer is based upon. (Member means tax preparer.) T/F ______

1. A member may recommend a tax return position reflecting a position that the tax payer knows could exploit the audit selection process of a taxing authority. SSTS: _________________________________________ ______

2. A member should not recommend a tax return position unless the member has a good-faith belief that the position has at least a realistic possibility of being sustained administratively or judicially on its merits if challenged. SSTS: ___________________________________________ ______

3. A member cannot take a different position on a tax matter that has been determined in administrative proceeding or court decision. SSTS: ___________________________________________ ______

4. A member may give tax advise orally or in writing and the subject matter may range from routine or complex. There is no standard format or guidelines for communicating or documenting advice to the taxpayer. SSTS: ___________________________________________ ______

5. All tax return prepared by a member should be prepared based on a taxpayers representation of facts, and the taxpayer has the final responsibility for positions taken on the return. SSTS: ___________________________________________ ______

6. A member does not have to advise the taxpayer regarding potential penalty consequences of such tax return position and the opportunity, if any, to avoid such penalties through disclosure. SSTS: ___________________________________________ ______

7. A member is not under the obligation to inform a taxpayer of an error in a previously filed return. SSTS: ___________________________________________ ______

8. Tax advice given to a taxpayer should be considered by the preparer when relevant as to any potential penalty consequences of the return position. SSTS: ___________________________________________ ______

9. A member has an obligation to communicate with a taxpayer when subsequent developments that affect any advice previously provided with respect to significant matters and assist the taxpayer in implementing procedures or plans associated with the subsequent developments. SSTS: ___________________________________________ ______

10. A member is required to examine underlying documentation and must keep in his files supporting data furnished by the taxpayer for return information for income and deductions arising from security transactions and from pass-through entities. SSTS: ___________________________________________ ______

11. A member should make use of a taxpayers returns for one or more prior-years in preparing the current return whenever feasible. SSTS: ___________________________________________ ______

12. A preparer may use approximations based on professional judgment in preparing a tax return. SSTS: ___________________________________________ ______

13. Disclosure of estimates is always required on returns that the preparer has used such estimates. SSTS: ___________________________________________ ______

14. A member should not recommend a different position from a prior years return even though court decisions, rulings or other authorities more favorable to a different position have occurred since the prior returns filing. SSTS: ___________________________________________ ______

15. If a member is requested to prepare the current years return and the taxpayer has not taken appropriate action to correct an error in a prior years return, the member cannot continue with the engagement. SSTS: ___________________________________________ ______

16. If a member is representing a taxpayer in an administrative proceeding with respect to a return that contains an error of which the member is aware, the member should request the taxpayers agreement to disclose the error to the taxing authority. SSTS: ___________________________________________ ______

17. Whether an error has no more than an insignificant effect on the taxpayers liability is left to the professional judgment of the member based on all the facts and circumstances known to the member. SSTS: ___________________________________________ ______

18. The cumulative effect of an error has not bearing on whether or not an error is insignificant or not. SSTS: ___________________________________________ ______ 19. When preparing a tax return, a member should consider information actually known to the member from the tax return of another taxpayer if the information is relevant to that tax return and its consideration is necessary to properly prepare that tax return. SSTS: ___________________________________________ ______

20. A member shall make a reasonable effort to obtain from the taxpayer the information necessary to provide appropriate answers to all questions on a tax return before signing as preparer. SSTS: ___________________________________________ ______

21. A member may omit answering a question on a tax return if reasonable grounds exist for omitting the answer to a question applicable to the taxpayer. SSTS: ___________________________________________ ______

22. A member should not omit an answer to a question because it might prove disadvantageous to the taxpayer. SSTS: ___________________________________________ ______

23. If reasonable grounds do not exist for omission of an answer to an applicable question, a taxpayer is not required to provide on the return an explanation of the reason for the omission. SSTS: ___________________________________________ ______

24. A member shall make a reasonable effort to obtain from the taxpayer that the taxpayers has maintained books and records or substantiating documentation to support reported deduction or tax treatments of items on a tax return. SSTS: ___________________________________________ ______

25. A member can use estimates if fire, computer failure, or natural disaster has destroyed the taxpayers records. SSTS: ___________________________________________ ______

26. A practitioner may endorse or otherwise negotiate any check issued to a client if the client has authorized the practitioner to do so. 230: ___________________________________________ ______

27. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in preparation of a submission to the Internal Revenue Service. 230: ___________________________________________ ______

28. An enrolled agent has the same ability to practice before the Internal Revenue Service as does an attorney or CPA. 230: ___________________________________________ ______

29. Practice before the Internal Revenue Service include preparing documents, filing documents, corresponding and communicating with the Internal Revenue Service and representing a client at conferences, hearings, and meetings. 230: ___________________________________________ ______

30. Enrolled Agents, enrolled retirement plan agents, and registered tax return preparers must renew their status with the Internal Revenue Service to maintain eligibility to practice before the IRS. 230: ___________________________________________ ______

31. A CPA may be denied to practice before the IRS if he or she has not filed their own individual income tax returns. 230: ___________________________________________ ______

32. An employee of the Mississippi Department of Revenue may not practice before the Internal Revenue Service if such employment may disclose facts or information applicable to Federal tax matters. 230: ___________________________________________ ______

33. In order to practice before the Internal Revenue Service, an individual must be twenty-one years old. 230: ___________________________________________ ______

34. An individual must pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent. 230: ___________________________________________ ______

35. An individual must pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent. 230: ___________________________________________ ______

36. An enrolled agent must complete two hours of ethics or professional credit each enrollment year. 230: ___________________________________________ ______

37. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of such noncompliance, error, or omission. 230: ___________________________________________ ______

38. A practitioner should always exercise due diligence in determining the correctness or oral or written representations made by the practitioner to the Department of the Treasury. 230: ___________________________________________ ______

39. A practitioner should not publish the availability of a written schedule of fees and disseminate since it may be considered to be advertising. 230: ___________________________________________ ______

40. A practitioner should refrain from any type of advertising. 230: ___________________________________________ ______

41. In general, a practitioner must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her Federal tax obligations unless the client has not paid the reasonable fee for services furnished by the practitioner, state law withstanding. 203: ___________________________________________ ______

42. In all cases, a practitioner must allow the client access to review or copy any records of the client retained by the practitioner to comply with his or her Federal tax obligations. 230: ___________________________________________ ______

43. Disbarment or suspension of practice as an attorney automatically gives authority to the Secretary of the Treasury to suspend, or disbar any practitioner from practice before the Internal Revenue Service. 230: ___________________________________________ ______

44. A practitioner who for compensation prepares or assists with the preparation of all or substantially all of a tax return must have a preparer tax identification number. 230: ___________________________________________ ______

45. Using abusive language with an employee of the Internal Revenue Service is grounds for suspension to practice before the Internal Revenue Service. 230: ___________________________________________ ______

46. Filing a frivolous return is grounds for being penalized by the Internal Revenue Service. 230: ___________________________________________ ______

47. A practitioner may not use or disclose any return information without the consent of the taxpayer in any situation. 230: ___________________________________________ ______

48. A practitioner may advise a client to submit a document, affidavit, or other paper to the IRS if it contains information that demonstrates an intentional disregard of a rule or regulation unless it, in conjunction with other documentation, in good faith, challenges the rule or regulation. 230: ___________________________________________ ______

49. A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service. 230: ___________________________________________ ______

50. A practitioner may not represent two separate clients if the representation of one will adversely affect the position of the other. 230: ___________________________________________