Q1. Jack's client told him that he had additional income for a side job but did not report the income . Jack chose not to report it since he did not have any documentation or proof of the income. as a result , the client paid less tax. if the IRS audits the client , they can assess what penalty to Jack as a prepare/

a)$55 per return up to $28000 per year

b)$5000 per return up to $28000 per year

c)the greater of $5000 or 75% of the income derived per return

Q2. Judy is preparing a client's 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 client's eligibility for the credits?

a)complete form 8867 , paid preparer's due diligence checklist and submit it to the IRS with the taxpayer's tax return

b)Judy must complete the EIC worksheet , CTC/ACTC/ODC worksheets , and the AOTC worksheet in the form 1040 instructions

c) 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 taxpayer's answers . copies of documentation provided by the taxpayer should be kept substantiating eligible for the EIC, CTE/ACTC/ODC , and AOTC and how it was determined by the preparer

Q3. Thomas completed Betty's 2021 tax return on April 18, 2022 . he must retain Betty's record until which of the following dates ?

a)April 18,2025

b)April 18.2023

c)December 31, 2025

Q4. Enzo's tax business prepared 2,515 tax returns during this past tax season . there were 554 tax returns that were not signed by a paid prepare . although Enzo is responsible for reviewing and signing all tax returns, he prepared only 300 of the unsigned tax returns . what is the amount of penalty for the unsigned tax return ?

a)$27700

b)$15000

c) $27000