Enrolled Agent Exam Part 3 Questions With Correct Answers

Enrolled Agent Exam Part 3 Questions With Correct Answers What information does a preparer need to maintain for each return done? - answerA 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? - answerYes 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? - answerYou 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? - answerImmediate 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? - answerThe 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 EXAM STUDY MATERIALS July 29, 2024 12:59 PM - 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? - answerThe 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? - answer30 days When is the IRS able to file a tax lien? - answerThe 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? - answer10 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? - answerThis 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. EXAM STUDY MATERIALS July 29, 2024 12:59 PM - Registered tax return preparers - Disqualified appraisers - Qualified continuing education providers What is needed for the IRS to fully evaluate an offer in compromise? - answerThe 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 How many accounts and what kind of accounts can a refund be directly deposited into? - answerThe refund can be split in up to three qualified accounts. Qualified accounts include checking, savings, IRA, HSA, Archer MSA, C