IRS Enrolled Agent Unit 1 TEST Exam Questions and Answers
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Course
EA - Enrolled Agent
Institution
EA - Enrolled Agent
1. A domestic LLC with at least two members that does not file Form 8832 is automatically classified as
_ _ _ _ for federal int. Orne tax purposes.
A. An S corporation.
B. A partnership.
C. A qualified joint venture.
D. A personal service corporation. - Answer-B
2. Don and Selma are ma...
IRS Enrolled Agent Unit 1 TEST Exam
Questions and Answers
1. A domestic LLC with at least two members that does not file Form 8832 is
automatically classified as
_ _ _ _ for federal int. Orne tax purposes.
A. An S corporation.
B. A partnership.
C. A qualified joint venture.
D. A personal service corporation. - Answer-B
2. Don and Selma are married and run a small pet grooming bu~iness together. They
want to treat their business
as a qualified joint venture. They live in a community property state. Which of the
following statements is
correct?
A. They may choose to report their qualified joint venture as a sole proprietorship on two
separate Schedules C,
so long as they file jointly.
B. They may choose to report their qualified joint venture as a single sole proprietorship
on two separate
Schedules C, so long as they file separate tax returns (MFS).
C. They must file a partnership tax return for their business activity.
D. They may file a single Schedule C, listing Don as the sole proprietor one year and
Selma as the sole proprietor
the next year. - Answer-A
3. In which of the following instances is a partnership not required to obtain a new EIN?
A. The partners decide to incorporate.
B. The partnership is taken over by one of the partners and is subsequently operated as
a sole proprietorship.
C. The general partner ends the old partnership and begins a new one.
D. The partnership adds other business locations. - Answer-D
4 . Which of the following is considered a drawback of the C corporation entity?
A. It may have many different shareholders.
B. It may have investors who are nonresident aliens.
c. Profits are subject to doufin!! taxation: once at the corporate level and again at the
shareholder level when
distributed as dividends.
D. It is run by a board of directors. - Answer-C
5. A sole proprietor may not be required to file Schedule SE if his net earnings for 2016
were:
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