Circular 230 Disreputable Conduct Practice Question
Work the complete fact pattern before revealing the explanation. This question is adapted from the IRS public sample set for the current exam law period.
Under Treasury Department Circular No. 230, which action is incompetence or disreputable conduct?
- A
Conviction of any misdemeanor under federal, state, or local law
- B
Conviction of a criminal offense involving dishonesty or breach of trust
Correct answer - C
Willfully disclosing return information with the taxpayer's consent
- D
Forgetting, due to reasonable cause, to sign a return when required
Conviction of a criminal offense involving dishonesty or breach of trust
Circular 230 specifically identifies conviction of a criminal offense involving dishonesty or breach of trust as disreputable conduct.
Transfer the reasoning, not the wording.
Restate the tested rule without the answer choices. Then change one decisive fact and explain which option would need to change. That short exercise makes the explanation retrievable instead of merely familiar.
Official sample source
PassFast adapted this public IRS sample for web practice and added the concise explanation above.