SEE 3 - IRS Practice Questions with
complete solution
Under Treasury Department Circular No. 230, all of the following are
considered to be incompetence or disreputable conduct EXCEPT:
(A)Conviction of any criminal offense under the Federal tax laws
(B) Conviction of any criminal offense involving dishonesty or breach of trust
(C) Willfully disclosing tax return information with the consent of the taxpayer
(D) Willfully failing to sign a tax return prepared by the practitioner when the
practitioner's signature is required by Federal tax laws - correct answers Key:
C
References: Cir. 230, Section 10.51
Circular 230 provides for all of the following enrolled agent sanctions
EXCEPT:
(A)Monetary penalty
(B) Imprisonment
(C) Censure
(D) Disbarment - correct answers Key: B
References: Cir. 230 Section 10.50
What is the maximum number of future tax years or periods an authorization
on a Form 2848 can be recorded to the Centralized Authentication File (CAF)
after the IRS receives a Form 2848?
(A) December 31 of year of receipt + 1
(B) December 31 of year of receipt + 2
(C) December 31 of year of receipt + 3
(D) December 31 of year of receipt + 4 - correct answers Key: C
, References: Instructions for Form 2848 pg. 3
A taxpayer filed an appeal of an IRS examination and then signed Form 8821,
Tax Information Authorization, authorizing an unenrolled return preparer to
receive the taxpayer's tax information related to the matter before Appeals.
Which of the following is correct?
(A) The unenrolled return preparer may represent the client before IRS
Appeals based on the Form 8821
(B) The unenrolled return preparer may represent the client before IRS
Appeals with the oral consent of the client
(C) The unenrolled return preparer may represent the client before IRS
Appeals with a note attached by the client
(D) The unenrolled return preparer may not represent the client before IRS
Appeals - correct answers Key: D
References: Form 2848 Instructions pg. 2
To meet due diligence requirements, a return preparer must retain all of the
following documents for a certain period of time when preparing an Earned
Income Credit Worksheet and Form 8867 EXCEPT:
(A) A record of how, when, and from whom the information used to prepare
the Form 8867 and the worksheets was obtained
(B) A copy of the Form 8867
(C) A record of any questions the taxpayer may have asked the tax preparer
about their eligibility for the credit
(D) Copies of documents provided by the taxpayer that the return preparer
relied on to determine the eligibility for the credit - correct answers Key: C
References: Form 8867 Instructions (2019), Part VI, p. 4
An enrolled agent (EA) is in the process of representing a taxpayer before the
Internal Revenue Service for a tax matter. The taxpayer's ex-husband also
complete solution
Under Treasury Department Circular No. 230, all of the following are
considered to be incompetence or disreputable conduct EXCEPT:
(A)Conviction of any criminal offense under the Federal tax laws
(B) Conviction of any criminal offense involving dishonesty or breach of trust
(C) Willfully disclosing tax return information with the consent of the taxpayer
(D) Willfully failing to sign a tax return prepared by the practitioner when the
practitioner's signature is required by Federal tax laws - correct answers Key:
C
References: Cir. 230, Section 10.51
Circular 230 provides for all of the following enrolled agent sanctions
EXCEPT:
(A)Monetary penalty
(B) Imprisonment
(C) Censure
(D) Disbarment - correct answers Key: B
References: Cir. 230 Section 10.50
What is the maximum number of future tax years or periods an authorization
on a Form 2848 can be recorded to the Centralized Authentication File (CAF)
after the IRS receives a Form 2848?
(A) December 31 of year of receipt + 1
(B) December 31 of year of receipt + 2
(C) December 31 of year of receipt + 3
(D) December 31 of year of receipt + 4 - correct answers Key: C
, References: Instructions for Form 2848 pg. 3
A taxpayer filed an appeal of an IRS examination and then signed Form 8821,
Tax Information Authorization, authorizing an unenrolled return preparer to
receive the taxpayer's tax information related to the matter before Appeals.
Which of the following is correct?
(A) The unenrolled return preparer may represent the client before IRS
Appeals based on the Form 8821
(B) The unenrolled return preparer may represent the client before IRS
Appeals with the oral consent of the client
(C) The unenrolled return preparer may represent the client before IRS
Appeals with a note attached by the client
(D) The unenrolled return preparer may not represent the client before IRS
Appeals - correct answers Key: D
References: Form 2848 Instructions pg. 2
To meet due diligence requirements, a return preparer must retain all of the
following documents for a certain period of time when preparing an Earned
Income Credit Worksheet and Form 8867 EXCEPT:
(A) A record of how, when, and from whom the information used to prepare
the Form 8867 and the worksheets was obtained
(B) A copy of the Form 8867
(C) A record of any questions the taxpayer may have asked the tax preparer
about their eligibility for the credit
(D) Copies of documents provided by the taxpayer that the return preparer
relied on to determine the eligibility for the credit - correct answers Key: C
References: Form 8867 Instructions (2019), Part VI, p. 4
An enrolled agent (EA) is in the process of representing a taxpayer before the
Internal Revenue Service for a tax matter. The taxpayer's ex-husband also
