A practitioner preparing a federal tax filing notices that a client-provided schedule conflicts with a reliable third-party document. Under Circular 230, what is the practitioner's most appropriate response?
A. Make reasonable inquiries and exercise due diligence before relying on the schedule.
B. Use the schedule because clients alone are responsible for factual accuracy.
C. File the return and investigate only if the IRS later selects it for examination.
D. Resolve the conflict by choosing whichever figure produces the smaller tax liability.
Source: 31 CFR 10.22(a) and 10.34(d) -- https://www.ecfr.gov/current/title-31/subtitle-A/part-10
A CPA represents two taxpayers whose interests directly conflict in the same federal tax matter. Circular 230 permits the representation only if the CPA reasonably believes competent and diligent representation remains possible, the representation is not prohibited by law, and what else occurs?
A. The IRS assigns separate revenue agents to the taxpayers.
B. Each affected client gives informed written consent at the time required by the rule.
C. The clients agree that the CPA will disclose all privileged communications to the IRS.
D. The CPA charges both clients the same fee.
Source: 31 CFR 10.29(b)–(c) -- https://www.ecfr.gov/current/title-31/subtitle-A/part-10
Under the unamended official text of UCC Article 2, a contract for the sale of goods generally falls within the statute of frauds when the price is at least what amount?
A. $100.
B. $250.
C. $300.
D. $500.
Source: UCC Article 2 official text, section 2-201(1) -- https://www.uniformlaws.org/acts/ucc
Which engagement is within a Circular 230 exception to the general prohibition on contingent fees for matters before the IRS?
A. Preparing an original income tax return for a percentage of the refund shown.
B. Preparing an amended return before any IRS examination or challenge, for a percentage of the refund.
C. Representing a taxpayer in a judicial proceeding arising under the Internal Revenue Code under a contingent-fee agreement.
D. Giving routine tax-planning advice for a fee equal to a percentage of projected tax savings.
Source: 31 CFR 10.27(b)(3), read with 10.27(a) -- https://www.ecfr.gov/current/title-31/subtitle-A/part-10
Under Circular 230, which statement about a practitioner's solicitation of tax clients is correct?
A. A practitioner may use any claim about prior results if the advertisement includes a disclaimer.
B. Direct mail is prohibited even when truthful and otherwise lawful.
C. A practitioner may imply IRS endorsement if the practitioner holds a valid preparer tax identification number.
D. A practitioner may not use false, fraudulent, coercive, or misleading statements or claims.
Source: 31 CFR 10.30(a)–(c) -- https://www.ecfr.gov/current/title-31/subtitle-A/part-10
