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32. Tony is taking a tax course and is studying the chapter on ethics. Which of

ID: 2329796 • Letter: 3

Question

32. Tony is taking a tax course and is studying the chapter on ethics. Which of the following is incorrectly listed as a professional responsibility in the preparation of tax returns? a) Taxpayer tax planning b) Taxpayer education c) Research d) Mailing client tax returns to the Internal Revenue Service and the state agency 33. Tony's tax instructor emphasizes the importance of keeping confidential any information used to prepare clients' returns. Which of the following would be excluded as a violation of the disclosure laws? Leaving client files in view of another client Asking a fellow associate to assist with the preparation of a return Telling your spouse that you prepared his boss's tax return Reviewing your client database to determine which cients you will contact to offer financial services a) b) c) d)

Explanation / Answer

32) Solution : The correct option is ( b) i.e Taxpayer Education

Tony has the professional responsibility of preparation of tax returns. It is not the professional responsibility of Tony to educate the taxpayer.

33)Solution : The correct option is (b) i.e Asking the fellow associate to assist in the preparation of a tax return. Tax Preparers within the same firm in the United States may use or disclose information that is available in the firm to assist in the preparation of the tax return or providing auxiliary services in relation with the return preparation. However, any disclosure or use of tax return information outside the United States requires specific consent.

69) Solution: The correct option is (a ) i.e $ 6400( see working note below)

Working Note:

)Maximum permissible amount of contribution to IRA is the Lesser of the following two:

Therefore maximum contribution allowed=$ 6500

Actual Contribution =$ 6400

Modified adjusted Gross Income= $ 22000

Since Hai is single and has a modified adjusted gross income= $22000(i.e single
+ modified adjusted gross income of less than or equal to $ 62000) then amount deductible = Full deduction upto the amount of the contribution limit

Amount Deductible = $ 6400

               

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