ACCT 495 Final Exam Questions And Answers

Prior to working at a VITA/TCE site, ALL VITA/TCE volunteers (greeters, client facilitators, tax preparers, quality reviewers, etc.) must: - -Annually pass the Volunteer Standards of Conduct (VSC) certification test with a score of 80% or higher -Sign and date the form 13615, Volunteer Standards of Conduct Agreement, agreeing to comply with VSC by upholding the highest ethical standards Can a volunteer be removed and barred from the VITA/TCE program for violating the Volunteer Standards of Conduct? - Yes If a taxpayer offers you a $20 bill because they were so happy about the quality service they received, what is the appropriate action to take? - Thank the taxpayer, and explain that you cannot accept any payment for your services Jake is an IRS tax law-certified volunteer preparer at a VITA/TCE site. When preparing a return for Jill, Jake learns that Jill does not have a bank account to receive a direct deposit of her refund. Jill is distraught when Jake tells her the paper refund check will take three to four weeks longer than the refund being direct deposited. Jill asks Jake if he can deposit her refund in his bank account and then turn the money over to her when he gets it. What should Jake do? - Jake should explain that a taxpayer's federal or state refund cannot be deposited into a VITA/TCE volunteer's bank account and she will have to open an account in her own name to have the refund direct deposited. Max prepares a tax return for Ali at a VITA/TCE site. He finds out during the interview that Ali has no health insurance. After Ali leaves the site, Max writes her name and contact information down to take home to his wife who sells health insurance for profit. Which of the following statements is true? - Max has violated the VSC because he is using the information he gained about Ali to further his own or another's personal benefit. Bob, an IRS tax law-certified volunteer preparer, told the taxpayer that cash income does not need to be reported because the IRS does not know about it. Bob indicated NO cash income on Form 13614-C. Bob prepared a tax return excluding the cash income. Jim, the designated quality reviewer, was unaware of the conversation and therefore unaware of the cash income and the return was printed, signed, and e-filed. Who violated the Volunteer Standards of Conduct? - Bob, the tax law-certified volunteer who prepared the return. Sue, a VITA/TCE coordinator, was watching the local news when she saw Aaron, a new tax law-certified volunteer, in a story about several bank employees being arrested for suspicion of embezzlement. She saw Aaron being led out of the bank in handcuffs. Three days later, Sue is shocked when she sees Aaron show up at the site ready to volunteer, apparently out on bond. She pulls Aaron aside and explains that his arrest on suspicion of embezzlement could have a negative effect on the site and therefore she must ask him to leave the site. Sue removed his access to the software, she then uses the external referral process to report the details to SPEC headquarters by sending an email to . Did Sue take appropriate actions as the coordinator? - Yes Sam is assigned to prepare a taxpayer's return. The taxpayer has been waiting for a long time due to the volume of taxpayers needing service. The taxpayer is agitated when they sit with Sam. How should Sam interact with the taxpayer? - Keep calm Create a peaceful and friendly atmosphere Remain professional and courteous. VITA/TCE sites and volunteers must not solicit business from taxpayers or use taxpayer information for personal or business benefit. - True Ben is preparing a tax return and the taxpayer has a dependent listed. The dependent is the child of the taxpayer's cousin. The child lived with the taxpayer a few months. Ben prepared the return and noted on Form 13614-C the child lived with the taxpayer all year. Did Ben violate the VSC? - Yes, Ben knowingly prepared the return with false information. All IRS-certified volunteer preparers participating in the VITA/TCE programs must use Form 13614-C or Form 13614-NR along with a thorough interview for every return prepared at the site. - True What must the certified volunteer preparer do with Form 13614-C before starting the tax return? - -Make sure all questions on Form 13614-C are answered -Change "Unsure" answers to "Yes" or "No" based on a conversation with the taxpayer -Determine the certification level required to complete the return. The Basic certification level is required to prepare a return with tip income. - False A date must be entered on Form 13614-C Part II: Marital Status and Household Information to determine the appropriate filing status for taxpayers who are: - -Divorced -Legally separated -Widowed VITA/TCE volunteers use Publication 4299, Privacy, Confidentiality, and Civil Rights - A Public Trust, to determine if a return is within scope - False VITA/TCE sites are required to conduct quality reviews: - For every return prepared at the site In most cases a volunteer must review photo identification for every taxpayer(s) to prevent the possibility of identity theft. - True When does the taxpayer sign the tax return? - After quality review and after being advised of their responsibility for the accuracy of the information on the return.