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Tax preparers are generally aware that California tax law usually contorms to the internal Revenue Code (IRC). However, there are continuing differences between California and federal law. When California conforms to specific federal tax changes, California does not always adopt them all as a whole. For this reason, after preparing a federal return, the California tax return should be modified using a form that allows for such changes. Which of the following forms should be used? Schedule B. Callfornia Schedule CA (540). Schedule C. Schedule E. In many situations, California does not conform to federal law. Taxpayers who do not have health coverage for themselves and their dependents in 2021 will pay an Individual Shared Responsibility Penalty when they file their 2021 California income tax returns (in 2022). In which case is the taxpayer not obligated to pay the penalty? The taxpayer was incarcerated in 2021. The taxpayer is a non-resident. The taxpayer is under the poverty income level. All the above are correct. rdinarily, a professional tax preparer does not act unethically within their practice. In rare ases, they may make a very personal decision that can violate ethical practices. These lecisions are not always easy, and unfortunately. it is not uncommon for the professional to e pressured by others to take actions that they consider unethical. When the professional is n this situation, a problem will surely arise. A dilemma faced by tax professionals is a situation where the following occurs, except for: The practitioner must make a difficult choice or decision. The tax professional quickly makes a decision. It is established that the appropriate action is not a black or white choice. The act requires processing over a "gray area," and further investigation is needed. events that should take place in order to report the correct information. Which of the following statements is the best way for an S-Corporation to report the QBI for a shareholder? An S-Corporation issues a Form W-2 for a shareholder in order to calculate the QBI. An S-Corporation issues a K-1 form showing all the required information to calculate the QBI for the shareholder, shown in box 17. The S-Corporation has no obligation to report any information about the calculation of the QBI, the shareholder has this responsibility

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