Jack, a return preparer, did not retain copies of all returns that he prepared but did keep a list that reflected the taxpayer's name, identification number, tax year, and type of return for each of his clients. Which of the following statements best describes this situation?
A. Jack is in compliance with the provisions of the tax code if he retains the list for a period of 1 year after the close of the return period in which the return was signed.
B. Jack is in compliance with the provisions of the tax code, provided he retains the list for a 3-year period after the close of the return period in which the return was signed.
C. Jack is not in compliance with the tax code since he must retain copies of all returns filed.
D. Jack is not in compliance with the tax code since he has not kept all the information required by the Code.
Answer: B. Jack is in compliance with the provisions of the tax code, provided he retains the list for a 3-year period after the close of the return period in which the return was signed.
You might also like to view...
Systematic sampling is different from simple random sampling in that only the permissible samples of size n that can be drawn have a known and equal probability of selection. The remaining samples of size n have zero probability of being selected
Indicate whether the statement is true or false
A special kind of part-time employment agreement, whereby two or more part-time employees perform a full-time job, is better known as ________
FIll in the blank with correct word.