Which, if any, of the following could result in penalties against an income tax return preparer? I. Knowing or reckless disclosure or use of tax information obtained in preparing a return.
$\text { II. A willful attempt to understate any client's tax liability on a return or claim for a refund. }$
A) I only
B) II only
C) neither I nor II
D) both I and II

Question

Quizplus · Accepted Answer

Both actions described in I and II can result in penalties against an income tax return preparer. Unauthorized disclosure or use of tax information is a violation of confidentiality, and willfully understating a client's tax liability is a serious offense.