Which of the following statements is true of the Tax Reform Act of 1976?
A) It imposes fines and imprisonment for an individual for aiding and assisting in the preparation of a False tax return.
B) An accountant who negligently understates a client's tax liability can be imprisoned under this act.
C) It provides for both criminal and civil penalties for securities fraud.
D) It makes it a criminal offense for any person who willfully makes any False statements in a registration statement.

Question

Quizplus · Accepted Answer

The Tax Reform Act of 1976 did indeed impose fines and imprisonment for individuals who aided and assisted in the preparation of a false tax return, as stated in choice A. However, the other statements are not true of this act. Choice B is more in line with the penalty provisions of the Internal Revenue Code, rather than the Tax Reform Act of 1976. Choice C pertains to securities law, and choice D pertains to the Securities Act of 1933, rather than the Tax Reform Act of 1976.

Which of the Following Statements Is True of the Tax