Indicate whether the following statements are "True" or "False" regarding tax practitioners and tax preparers.

ItemDescriptionAnswer$1.$Only Certified Public Accountants may represent taxpayers before the IRS.

TrueFalse

$2.$A college degree is required to prepare tax returns for compensation.

TrueFalse

$3.$Only attorneys may prepare corporate tax returns.

TrueFalse

$4.$The tax preparer penalty for filing a document aiding or abetting an individual taxpayer in the understatement of a tax liability is $$1,000.$

TrueFalse

$5.$The tax preparer penalty for endorsing a taxpayer's refund check is $$580.$

TrueFalse

$6.$The tax preparer penalty for failing to provide a copy of a tax return to a taxpayer is $$60.$

TrueFalse

$7.$For audits after $1998,$ if the IRS uses statistics to reconstruct an individual taxpayer's income, the burden of proof is on the taxpayer.

TrueFalse

$8.$For corporations, trusts, and partnerships with net worth over $$7$ million, the burden of proof is on the IRS in civil tax matters.

TrueFalse

$9.$CPAs and enrolled agents have tax privileged communication only in noncriminal proceedings before the IRS or federal courts.

TrueFalse

$10.$If an individual taxpayer does not cooperate with reasonable IRS requests for meetings, interviews, witnesses, information, and documents, the burden of proof in a tax matter is on the taxpayer.

TrueFalse

$11.$Commercial tax preparers must have a PTIN.

TrueFalse

$12.$A Wall Street Journal article on taxes is substantial authority for purposes of tax preparer penalties.

TrueFalse

$13.$A tax preparer has a reasonable basis for a tax position but lacks substantial authority. If the position is disclosed, the tax preparer can avoid penalty.

TrueFalse

$14.$Circular $230$ provides guidance for those that wish to practice before the IRS.