Question

A tax preparer may be subject to a penalty for failing to provide a copy of the taxpayer's tax return to the client. Is a PTIN required semi-annually for anyone who prepares or assists in preparing federal tax returns for compensation?

1) True
2) False

Answer 1

No, a PTIN is required annually for anyone who prepares or assists in preparing federal tax returns for compensation. Failure to provide a copy of the taxpayer's tax return to the client can result in penalties for the tax preparer.

Step-by-step explanation:

No, a PTIN (Preparer Tax Identification Number) is required annually, not semi-annually, for anyone who prepares or assists in preparing federal tax returns for compensation. The PTIN is issued by the IRS (Internal Revenue Service) and it serves as a unique identifier for tax professionals. It is important for tax preparers to have a PTIN in order to comply with the IRS regulations and to be able to legally prepare tax returns for their clients.

Failure to provide a copy of the taxpayer's tax return to the client can result in penalties for the tax preparer. The IRS requires tax preparers to give a copy of the completed tax return to their clients for record-keeping purposes. This helps ensure transparency and gives the taxpayer the opportunity to review and verify the information on their tax return.

So, the correct answer to the question is: False. A PTIN is required annually for anyone who prepares or assists in preparing federal tax returns for compensation, not semi-annually.