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Enrolled Agent Exam with complete solutions
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Enrolled Agent Exam with complete solutions
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Enrolled Agent Exam with completesolutions
A taxpayer discovers an error on a previous return that would result in an additional
refund. The return for the year in question was filed on March 2, 2020 with the due date
being April 15, 2020. What is the latest acceptable post-marked date for the refund to
be issued under the statute of limitations?
A) March 2, 2022
(B) March 2, 2023
(C) April 15, 2022
(D) April 15, 2023 - Correct Answers -(D) April 15, 2023
The statute of limitations on a refund being issued based on a change to a previous
return is the later of three years from the due date of the original return or two years
from the date the tax was paid. In this case, it would be three years after the original
due date of April 15, 2020 which is April 15, 2023.
What is not a minimum requirement of provided biographical information for the filing of
a tax
return?
(A) Providing a social security card
(B) Providing two forms of identification
(C) Date of birth
(D) Citizenship status - Correct Answers -(A) Providing a social security card
There is a minimum amount of information that must be provided to file a return. This
includes:
Legal name
Date of birth
Marital status
Residency
Citizenship
Identification of any dependents
Providing two forms of identification
,Providing SSN, ITIN, or ATIN
Which of the following statements are false in regards to the issuance of an Individual
Taxpayer
Identification Number (ITIN)?
(A) An ITIN does not authorize work in the U.S.
(B) AN ITIN does not provide eligibility for Social Security benefits
(C) An ITIN does not indicate ineligibility for a Social Security Number
(D) An ITIN does not qualify a dependent for Earned Income tax credit purposes -
Correct Answers -(C) An ITIN does not indicate ineligibility for a Social Security Number
An Individual Taxpayer Identification Number (ITIN) is used to identify and process
individuals who are not able to obtain or have a Social Security Number but are still
responsible for the filing of a federal tax return. An ITIN does not provide the following
benefits:
Authorize work in the U.S.
Provide eligibility for Social Security benefits
Qualify a dependent for Earned Income Tax Credit Purposes
A couple has a registered domestic partnership with a qualifying child. Both members of
the
couple attempt to claim the child as a dependent. The child lives with Parent "A" for a
longer
period of time during the taxable year than parent "B". Also, Parent "A "has a higher AGI
than
Parent "B". What statement is true regarding the correct filing?
(A) Both parents may claim the child as dependent
(B) Parent "A" may claim the child as dependent
(C) Parent "B" may claim the child as dependent
(D) Neither parent may claim the child as dependent - Correct Answers -(B) Parent "A"
may claim the child as dependent
Registered domestic partnerships are not able to file joint taxes as they are not married
under state law. The dependency of the child may be claimed but only by one of the
members of the domestic partnership. If both attempt to claim the dependent, the IRS
will only allow the parent with whom the child had the most time of residence to claim
the dependence. If the time were split evenly, the parent with the higher adjusted gross
income would be able to claim the dependency.
Of the scenarios listed below, which one would require a filing status of single?
(A) A couple divorced in early December of the tax year
(B) A couple married in November
,(C) A same-sex couple married but living in a jurisdiction that does not recognize the
marriage
(D) A deceased individual who was married at the time of death - Correct Answers -(A)
A couple divorced in early December of the tax year
The filing status of the individual is determined by their status on the last day of the tax
year. The length of time associated with a specific arrangement is inconsequential.
Therefore, a couple who was married for almost the entirety of the year but then is
divorced on the final day will have to file as single.
What is not a means of removal of green card status?
(A) Voluntary announcement in writing
(B) Failure to meet the substantial presence test requirements
(C) Administrative termination by the USCIS
(D) Judicial termination by a federal court - Correct Answers -(B) Failure to meet the
substantial presence test requirements
An individual's green card status may be removed by the following means:
Judicial removal by a federal court
Renouncement by the individual
Administrative termination by the USCIS
The substantial presence test is a separate evaluation of residency for tax purposes
Which of the following may not be eligible to be claimed as a dependent?
(A) Foreign exchange student
(B) Foreign adopted child
(C) Resident of Canada
(D) U.S. resident alien - Correct Answers -(A) Foreign exchange student
The citizen or resident dependency test details the types of individuals who can and
cannot be a qualifying dependent. A dependent person must be a U.S. citizen, U.S.
resident alien, U.S. national, or a resident of Canada or Mexico. They may also be an
adopted non-U.S. citizen, U.S. resident alien, or U.S. national as long as the child lives
with the taxpayer as a member of the household all year and if all other dependency
tests are met. Foreign exchange students despite the length of stay are not considered
eligible.
Of the scenarios listed below, which does not meet the age requirements for
qualification as a dependent?
(A) 17-year-old single mother
(B) 30-year-old with a permanent disability
(C) 28-year-old full-time student
(D) 9-year-old adoption - Correct Answers -(C) 28-year-old full-time student
, The age requirement for dependency is as follows:
Under the age of 19 at the end of the tax year and younger than the taxpayer or
A full-time student under the age of 24 at the end of the year and younger than the
taxpayer, or
Any age if permanently disabled at any time during the year
Which of the following tests is used as a basis of qualification for the Child Tax Credit
and not for the Earned Income Tax Credit?
(A) Age
(B) Support
(C) Residency
(D) Relationship - Correct Answers -(B) Support
The Child Tax Credit and the Earned Income Tax Credit have similar qualifications for
the dependency portion. The CTC includes:
Age Relationship Support Dependent Citizenship Residence
The EITC includes:
Residency
Age
Joint return
Relationship
All of the following scenarios can be considered work or looking for work-related
expenses for the purposes of qualifying for the Child and Dependent Care Credit
except:
(A) Paying for care while one spouse works nights and the other sleeps
(B) Paying for care to perform volunteer work
(C) Paying for care to go on a job interview
(D) Paying for care during a business trip - Correct Answers -(B) Paying for care to
perform volunteer work
The Child and Dependent Care expenses must be work-related or related to looking for
a job. Volunteering is considered an optional act and does not fall under work-related
expenses.
What individual scenario listed below is not eligible for the foreign earned income
exclusion?
(A) U.S. resident alien physically present in a foreign country from June 1st to the
following
August 1st
(B) U.S. citizen physically present in a foreign country from June 1st to the following
January 1st
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