Enrolled Agent Exam Part 3
What information does a preparer need to maintain for each return done? - Answer- A preparer must maintain the taxpayer's name, tax ID number, taxable year of the taxpayer, name of the preparer, and the type of return or claim for refund prepared.
Can you prepare ta...
Enrolled Agent Exam Part 3
What information does a preparer need to maintain for each return done? - Answer-
A preparer must maintain the taxpayer's name, tax ID number, taxable year of the
taxpayer, name of the preparer, and the type of return or claim for refund prepared.
Can you prepare tax returns when you are suspended from Practice before the IRS?
- Answer- Yes because preparing tax returns is not considered "practice before the
IRS."
What are you required to do every year in order to participate in the Annual Filing
Season Program and to get a Record of Completion certificate? - Answer- You must:
- Take 18 hours of continuing education from IRS-Approved CE Providers including:
a six hour annual federal tax refresher course that covers filing season issues and
tax law updates, as well as a knowledge-based comprehension test administered at
the end of the course by the CE Provider; Ten hours of other federal tax law topics
and; Two hours of ethics.
- Have an active PTIN.
- Consent to adhere to specific practice obligations outlined in Subpart B and section
10.51 of Treasury Department Circular No. 230.
Who can represent an individual in front of the IRS without a power of attorney? -
Answer- Immediate family members (spouse, child, sibling or parent) can represent
an individual but they cannot sign a power of attorney to authorize somebody else to
represent the individual.
By signing a form 2848, the representative declares under penalties of perjury that
he or she is aware of what? - Answer- The regulation in Treasury Department
Circular No. 230.
When researching tax law for specific situations, what are considered reliable
sources of information? - Answer- - The Internal Revenue Code
- The Treasury Regulations
- Revenue Rulings
- Revenue Procedures
- Written Determinations
- Announcement and Notices
- Court Rulings
- The Congressional Bill or Law
- Congressional Committee Reports
When applying for an installment agreement, when is form 433-F, Collection
Information Statement, required to be filed? - Answer- The Collection Information
Statement is required to be filed when you owe less that $50,000.
How long does the IRS have to release the lien after the taxpayer satisfies the
amount of tax due? - Answer- 30 days
, When is the IRS able to file a tax lien? - Answer- The lien may be filed when the tax
is assessed and the tax not paid within 10 days of receiving the bill.
How long after the assessment of tax can the IRS collect outstanding taxes? -
Answer- 10 years
What information can an authorized e-file provider update with the IRS by letter
instead of online? - Answer- - If the e-file provider is selling, transferring, or otherwise
discontinuing its e-file business.
- All contact information
- Contact persons
- Form types to be e-filed
- Transmission protocols
- Adding federal/state e-file
- Changes to foreign filer information
- Provider options
What is CNC (currently not collectible) status? - Answer- This is a very special
arrangement where the IRS suspends all collections activity. You can get this if the
IRS decides that collecting the taxes owed would cause you "hardship" as it is
defined by the IRS.
Circular 230 requires the IRS make available to the public certain rosters pertaining
to practice before the IRS. What is included on these rosters? - Answer- - Individuals
or entities sanctioned from practice before the IRS or upon whom a monetary
penalty was imposed.
- Enrolled agents and enrolled retirement plan agents: including those who are
actively enrolled, in inactive status for failure to meet renewal requirements, and in
voluntary inactive retirement status, and who have voluntarily resigned instead of
facing a disciplinary proceeding.
- Registered tax return preparers
- Disqualified appraisers
- Qualified continuing education providers
What is needed for the IRS to fully evaluate an offer in compromise? - Answer- The
taxpayer must have filed all tax returns, made all required estimated payments for
the current year, and made all required federal tax deposits for the current quarter if
the taxpayer is a business owner with employees. The applicant must also complete
all applicable forms on form 656 which is the official compromise agreement.
What forms can be E-Filed? - Answer- - Individual: 1040
- Partnership: 1065 and 1065B
- Corporations: 1120, 1120f, and 1120s
- Estate and trust: 1041
- Extensions: 2350, 2848, 7004, and 8868
- Employment tax: 940, 941, 943, 944, and 945
- Exempt organizations: 990 and 1120POL
- Excise tax: 2290, 720, and 8849
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