TEST BANK FOR FEDERAL TAX RESEARCH 12TH EDITION BY ROBY SAWYERS, STEVEN GILL Answers are at the end of Each Chapter (Complete And Verified Study material) (121pages) LEARNEXAMS

Chapter 1 Indicate whether the statement is true or false. 1. Tax planning has a higher likelihood of success when a tax practitioner is dealing with an open transaction instead of a closed transaction. a. True b. False 2. If a CPA becomes aware of an error in a tax return, he or she must immediately notify the IRS. a. True b. False 3. The Sarbanes-Oxley Act addresses issues of corporate governance as well as the independence of auditors. a. True b. False 4. An attorney, CPA, or enrolled agent may use advertising to obtain clients under Circular 230. a. True b. False 5. Circular 230 bans tax practitioners from giving written advice on a federal tax issue based on the likelihood of an audit. a. True b. False 6. Tax research is required only for tax planning, not preparing returns. a. True b. False 7. The three categories of modern tax practice include tax planning, tax compliance, and tax research. a. True b. False 8. Tax practice can be defined as the application of the tax laws to specific accounting situations. a. True b. False 9. State Boards of Accountancy are the organizations with responsibility to license public accountants in each state. a. True b. False 10. A member of the AICPA is not allowed to prepare tax returns that involve the use of the taxpayer’s estimates.