Indicate whether each of the following parties could be subject to the tax prepa
ID: 1225788 • Letter: I
Question
Indicate whether each of the following parties could be subject to the tax preparer penalties. a. I Om prepared Sally's return for $250. b. Theresa prepared her grandmother's return for no charge. c. Georgia prepared her church's return for $500 (she would have charged an unrelated part)- $3,000 for the same work). d. Geoff prepared returns for low- income taxpayers under his college's VITA program. e. I Wieldy prepared the return of her corporate employer. f. I feeder, an administrative assistant for an accounting firm, processed a client's return through Turbo Tax.Explanation / Answer
A tax preparer can be penalized if he/she is unable to submit the work papers to the tax payers.
In the above question in option b, option d, option e and option f, the tax preparer prepared the work paper for the tax payer. So in those cases tax preparer is no penalized.
But in the case of option a and option c, there is no information about the submission of work papers to the tax payer. So in those case there is possibility of tax preparer penalties.