Volunteer Income Tax Assistance (VITA) Certification Practice Test

Who has violated the Volunteer Standards of Conduct in a situation where cash income is not reported?

1. Bob, the IRS tax law certified volunteer preparer

2. Jim, the designated Quality Reviewer

3. Betty, the Site Coordinator

4. No one has violated the Volunteer Standards of Conduct

The correct answer is: Bob, the IRS tax law certified volunteer preparer

The situation described involves an instance where cash income is not reported, which is typically a violation of the Volunteer Standards of Conduct. Bob, as the IRS tax law certified volunteer preparer, holds a specific responsibility to ensure that all income is accurately reported on the tax return. This duty is foundational to maintaining the integrity of the tax filing process and ensuring compliance with federal tax laws. By failing to report cash income, Bob would not only be violating the Standards of Conduct, but he may also be jeopardizing the compliance status of the tax assistance program. As a preparer, it is imperative for him to uphold ethical standards and accurately report all sources of income as required by the law. This responsibility is crucial in ensuring that taxpayers receive correct filing guidance and support, thus maintaining the credibility and reliability of the VITA program. In contrast, the roles of the other individuals indicated—Jim and Betty—entail oversight and administration within the VITA program rather than direct interaction with individual tax returns in a preparatory capacity. Their actions may influence the program's overall adherence to standards but do not directly involve the reporting of income on a specific taxpayer's return in the same manner as Bob's role does. Therefore, the specific violation of failing to report income can