Tennessee CPA Journal Self-Study CPE Exam

Sponsored by the Educational & Memorial Foundation of the Tennessee Society of CPAs
Recommended CPE Credit: 1 hour

Issue Date: March 2008
Exam valid through September 1, 2008.
Must be postmarked on or
before September 1, 2008.

If you are not a member of TSCPA, please send a check for $20 payable to the Educational & Memorial Foundation of TSCPA.

If you have not taken this exam before or have questions, please read the Instructions.

This form will be sent to TSCPA electronically and you will receive your graded exam via e-mail. Please click here if you intend to mail or fax the exam to TSCPA. Click here for help.

True

False

From “New Tax Return Preparer Penalties for Signing and Non-Signing Preparers”

1. The Internal Revenue Code was amended by increasing the monetary penalty, expanding the scope to cover all returns and raising the standard.
2. To meet the MLTN standard, the preparer must determine the position taken is supported by the substantial authority and there is a greater than 40 percent likelihood of prevailing on the merits of the challenge.
3. The thrust of the firm penalty analysis appears to be focused on the single incident, not on the systematic concerns.
From "A Primer on the Tennessee Revised Limited Liability Company Act"

4. To ensure that a compliant LLC would be guaranteed treatment as a partnership, three characteristics were required to be taxed as a partnership: limited liability, centralization of management and free transferability of interests.
5. A key change from the old act to the new act is the possible LLC management structures.
From "An Accountant's Guide to Legal Quagmires"    

6. The most pervasive restriction that employers use are non-competition restrictions, also known as covenants not to compete.
7. Negotiating points include the percentage of fees and whether the fee is based on billings earned by the firm before termination or fees earned by the accountant post-termination.

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Instructions

Members may earn free CPE by reading the Tennessee CPA Journal. To be eligible for continuing professional education credit, you should spend approximately one to two hours reading the material in the current issue of the Tennessee CPA Journal. Then answer the following questions by darkening the circle which represents the best answer. Certify that you have completed the reading requirement for this exam by signing below. You must answer five of the seven questions correctly to receive credit. You should receive a copy of your graded test within four weeks of the date of submission. If you have not received a response within this time, please call TSCPA at 615/377-3825 or toll-free 1-800/762-0272. This program has been approved by the Tennessee State Board of Accountancy. This exam qualifies for credit under the reporting sub-category “Other - Code 10. ” CPAs licensed to practice in Tennessee may earn up to 20 percent of their total CPE requirements through this type of examination.