Morgan, a sole practitioner CPA, prepares individual and corporate income tax returns. What documentation is Morgan required to retain concerning each return prepared？
a. An unrelated party compliance statement.
b. A power of attorney.
c. Workpapers associated with the preparation of each tax return.
d. Taxpayer's name and identification number or a copy of the tax return.
答案：D
Explanation
Choice “d” is correct. For each tax return prepared, a tax preparer must retain either the taxpayer's name and identification number, or a copy of the return.
Choice “a” is incorrect. This is not an item that a tax preparer is required to retain.
Choice “c” is incorrect. A tax preparer is not required to retain workpapers used in preparing a tax return, although doing so is often a sound business practice. Among other reasons, the workpapers could be beneficial in the event of an audit, or in the preparation of the following year's tax return for the client.
Choice “b” is incorrect. This is not an item that a tax preparer is required to retain.
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