IRS Enrolled Agent Part 3 Unit 3 TEST
UPDATED ACTUAL Questions and
CORRECT Answers
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, Request for Transcript of Tax Return. - CORRECT ANSWER -C
The maximum number of refunds that may be electronically deposited into a single financial
account is:
A. One.
B. Two.
C. Three.
D. Four. - CORRECT ANSWER -C
In what situation is a preparer allowed to disclose information without first obtaining written
permission from a client?
A. When he is issued a subpoena by a state agency that regulates tax return preparers.
B. When he is contacted by a newspaper reporter investigating a possible crime commited by his
client.
C. When the information is requested by his client's uncle who helps support the client
financially.
D. When the information is needed by a preparer who volunteers with VITA. - CORRECT
ANSWER -A
, All of the following statements regarding the signature requirements for tax returns are correct
except:
A. A preparer may sign a taxpayer's return in lieu of the taxpayer, if the taxpayer cannot sign his
own tax return due to a physical disability.
B. A preparer may sign a taxpayer's return in lieu of the taxpayer, if the taxpayer cannot sign his
own tax return due to extended absence from the United States.
C. A preparer is allowed to copy a taxpayer's signature if he has a signed power of attorney.
D. A preparer must have a signed power of attorney in order to sign on the taxpayer's behalf. -
CORRECT ANSWER -C
A durable power of attorney remains in effect until an individual:
A. Gets divorced.
B. Becomes mentally incompetent or incapacitated.
C. Dies.
D. Both B and C. - CORRECT ANSWER -C
For a taxpayer who wants someone to represent him at an examination by the IRS, all of the
following statements are correct except:
A. The taxpayer must furnish that representative with written authorization on Form 2848, Power
of Attorney and Declaration of Representative, or any other properly written authorization.
B. The representative can be an attorney, CPA, or EA.
C. The representative can be an unenrolled preparer who prepared the taxpayer's current year tax
return but not the year of the return under examination.
D. Even if the taxpayer appointed a representative, the tax payer may choose to attend the
examination or appeals conference and may act on his own behalf. - CORRECT
ANSWER -C
UPDATED ACTUAL Questions and
CORRECT Answers
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, Request for Transcript of Tax Return. - CORRECT ANSWER -C
The maximum number of refunds that may be electronically deposited into a single financial
account is:
A. One.
B. Two.
C. Three.
D. Four. - CORRECT ANSWER -C
In what situation is a preparer allowed to disclose information without first obtaining written
permission from a client?
A. When he is issued a subpoena by a state agency that regulates tax return preparers.
B. When he is contacted by a newspaper reporter investigating a possible crime commited by his
client.
C. When the information is requested by his client's uncle who helps support the client
financially.
D. When the information is needed by a preparer who volunteers with VITA. - CORRECT
ANSWER -A
, All of the following statements regarding the signature requirements for tax returns are correct
except:
A. A preparer may sign a taxpayer's return in lieu of the taxpayer, if the taxpayer cannot sign his
own tax return due to a physical disability.
B. A preparer may sign a taxpayer's return in lieu of the taxpayer, if the taxpayer cannot sign his
own tax return due to extended absence from the United States.
C. A preparer is allowed to copy a taxpayer's signature if he has a signed power of attorney.
D. A preparer must have a signed power of attorney in order to sign on the taxpayer's behalf. -
CORRECT ANSWER -C
A durable power of attorney remains in effect until an individual:
A. Gets divorced.
B. Becomes mentally incompetent or incapacitated.
C. Dies.
D. Both B and C. - CORRECT ANSWER -C
For a taxpayer who wants someone to represent him at an examination by the IRS, all of the
following statements are correct except:
A. The taxpayer must furnish that representative with written authorization on Form 2848, Power
of Attorney and Declaration of Representative, or any other properly written authorization.
B. The representative can be an attorney, CPA, or EA.
C. The representative can be an unenrolled preparer who prepared the taxpayer's current year tax
return but not the year of the return under examination.
D. Even if the taxpayer appointed a representative, the tax payer may choose to attend the
examination or appeals conference and may act on his own behalf. - CORRECT
ANSWER -C
