Enrolled Agent Tests Bundle Set

When do Social Security Benefits (SSBs) become taxable? Answer - When a persons MODIFIED INCOME exceeds the BASE AMOUNT of their filing status. What is Modified Income for RETIREMENT INCOME? Answer It equals 1/2 of the SSB plus all other income, including any TAX EXEMPT income. What is Base Am...

Where do the rules to practice before the IRS appear? Answer Circular 230 What is practice before the IRS Answer C.P.R.R Communicating w/ IRS Preparing documents Representing a taxpayer Rendering written advice What is NOT practice before the IRS Answer F.A.P Preparing a tax return F...

On which Schedule would a self-employed farmer report their income and loss? Answer Schedule F What types of income are reported on Schedule E (Form 1040)? Answer Income from rental real estate, royalties, partnerships, S corps, trusts, and estates. What are some situations that make discharge...

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 ...

True or false: Foreign income you earned from wages or self-employment or any source from anywhere in the world is taxable for American citizens and most residents with certain exceptions Answer True First exception for excluding foreign income Answer An American residing outside the U.S. for mos...

FORM 4868 Answer Application for Automatic Extension of Time To File U.S. Individual Income Tax Return - Interest is charged on tax not paid by the due date of the return if they get an extension What is the minimum for reporting self-employment income? Answer $400 or more What is the minim...

1. "Practice before the IRS" does not include: A. Communicating directly with the IRS on behalf of a taxpayer regard ·1n g his rights or liabilities. B. Representing a taxpayer at an IRS examination. C. Representing taxpayers before the IRS appeals division. D. Representation of a taxpayer in...

Lauren and Ralph divorces in four years ago. They have a 12 year old child, Amy who lives with Lauren. All are US citizens and have SSNs. Lauren and ralph provide more than half for Amy support. lauren AGI is $31,000 ans Ralph's is 39,000. The divorce decree doesn't state who can claim the child. ...

Which form of business entity is not a legal entity separate and apart from its owner? A. Corporation B. Partnership C. Sole proprietorship D. S corporation Answer C Under which circumstance is an entity required to apply for a new employer identification number? A. Proprietorship that i...

Which of the following is income in respect of a decedent? A) Cash received from a grandmother's estate. B) Royalties received on the deceased father's published book; the right to receive these royalties was distributed from the father's estate. C) Certificate of deposit received as a gift. ...

Substancial Presence Test Requirments Answer To be considered a US Resident a tax payer must be physically present in the US for atleast 31 days during 2019 but must have a total of 183 days. All days count for 2019 but only 1/3 of the days count for 2018 and 1/6 of the days in 2017 Income tax ra...

Gross Income Answer All taxable money, goods, property, and services When do you include Social Security benefits in gross income? Answer If you were married, living with your spouse at any time and filing a seperate return Half your SS benefits + other gross income + tax-exempt interest > ...

Determining Capital Gains and Losses Answer Capital losses are netted against Capital gains to get Net Capital Gain or Loss. Net long-term capital gains against long-term capital losses and short-term capital gains against short-term capital losses. Net the net long-term capital net that amount ...

Which designation or form gives the appointed person the greatest rights to represent a taxpayer? A. Third party designee, also known as "Check Box" authority. B. Form 8821, Tax Information Authorization. C. Form 2848, Power of Attorney and Declaration of Representative. D. Form 4506-T, Requ...