ATP 105 Ethics case studies
ATP 105 Ethics · Put your knowledge to work in context.
The Accredited Tax Preparer (ATP) is a credential offered by the Accreditation Council for Accountancy and Taxation (ACAT), a credentialing organization focused on accounting and taxation professionals. The ATP indicates that the holder specializes in preparing individual tax returns and understands tax laws, forms, and filing requirements. It suits tax preparers who want to distinguish themselves in a competitive marketplace, demonstrate proven knowledge to clients and employers, and pursue continuing professional development. The exam covers two domains: Personal Income Taxation and Ethics and Procedures. The ATP 105 Ethics case studies are 5 cases and about 1,894 words.
1The Deadline and the Missing Receipt
Priya is a self-employed graphic designer preparing her own return. Her gross receipts were 84,000 and she has 19,300 of documented business expenses.
383 words, about 2 min2The Client Who Wants the Home Office
Marcus is a salaried employee who also does freelance consulting on the side. He works from a dedicated 150 sq ft room in his 2,000 sq ft home.
377 words, about 2 min3The Round Number
A junior preparer, Dana, is finishing a return for a landscaping client. The client's actual records show 7,140 of vehicle expenses, but the client says 'just put 9,000, everyone rounds up, and I'll bring the log next year.' Dana's supervisor is on leave and the filing deadline is tomorrow.
353 words, about 2 min4The Referral Fee
Ravi prepares tax returns. A financial advisor, Lena, refers clients to him and asks for a 15% commission on fees from any referred client.
382 words, about 2 min5The Amended Return and the Prior Preparer
A new client, Sofia, brings her prior-year return, prepared by another firm. Reviewing it, you spot that a 12,000 deduction was claimed twice, producing an understatement of about 3,800 in tax at her 32% rate.
399 words, about 2 min