Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mr. bernardo is an enrolled agent who prepares tax

Mr. Bernardo is an enrolled agent who prepares tax returns for a living. In preparing...

50.1K

Verified Solution

Question

Accounting

Mr. Bernardo is an enrolled agent who prepares tax returns for a living. In preparing Mr. and Mrs. Colter's Form 1040, Mr. Bernardo claimed a deduction
based on an unreasonable legal position. Mr. Bernardo's compensation for the return was $3,800. What is the consequence to Mr. Bernardo if the IRS
disallows the deduction?
Multiple Choice
The IRS can impose a $1,900 penalty on Mr. Bernardo.
The IRS can impose a negligence penalty on the Colters but can't penalize Mr. Bernardo.
The IRS can terminate Mr. Bernardo's status as an enrolled agent.
The IRS can impose a civil fraud penalty on Mr. Bernardo.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students