Enrolled agent exam 3 UPDATED ACTUAL
Questions and CORRECT Answers
FORM 8879- IRS e-file Signature Authorization - CORRECT ANSWER - Authorizes an
ERO to enter the taxpayers PIN on individual income tax returns
Form 8878 - CORRECT ANSWER - Authorizes an ERO to enter the taxpayers pin on
extension forms 4868 and 2350
Resubmit every check to return without additional signatures if the amounts for total income is
not more than how much? - CORRECT ANSWER - 50 dollars
If the ER O does not require additional signatures to resubmit the reject return, if the amounts of
income tax, withheld or amount, you owe different, no more than how many dollars? -
CORRECT ANSWER - 14 dollars
How long must form 8879 be available to the IRS? - CORRECT ANSWER - 3 years
Safeguard Rule - CORRECT ANSWER - Requires that financial institutions develop,
implement and maintain an information security program.
The IRS six security, privacy and business standards to better serve taxpayers? - CORRECT
ANSWER - Extended validation SSL certificate, external vulnerability scan, information
privacy and safeguard policies, protection against bulk filing or fraudulent income tax returns,
public domain name registration, reporting of security incidents.
Identity protection pin, IPPIN - CORRECT ANSWER - A six digit number that prevents
someone else from filing a tax return, using a taxpayers Social Security number. The IRS uses
the IPPIN to verify identity when a taxpayer files and electronic or paper tax return.
Form 14039 - CORRECT ANSWER - Identity Theft Affidavit
,Where to place a fraud alert on credit reports for businesses - CORRECT ANSWER - Dun
and Brad Street, Equifax, experian, Trans Union.
If an individual suspects identity theft, what are the three major credit bureaus they should place
a fraud alert with? - CORRECT ANSWER - Equifax, experian, trans union.
FTC, financial privacy rule, requires financial institutions, including tax return prepares to do
what? - CORRECT ANSWER - Give their customers privacy notices
The IRS return preparer office RPO - CORRECT ANSWER - Responsible for issuing
PTINS, acting on applications for enrollment and administering AFSP testing and continuing
education
The office of professional responsibility - CORRECT ANSWER - They are responsible for
the enforcement of curricular,230 conduct issues
Who may practice before the IRS? - CORRECT ANSWER - Attorneys, CPAs, enrolled
agents, and enrolled actuaries, Low income tax pair, clinic student interns, IRS annual filing
season program.
Unenrolled return preparer cannot? - CORRECT ANSWER - Represent a taxpayer,
execute, closing agreements, extend the statutory. For tax assessment, or collection of tax,
execute waivers, execute claims for refund, receive refund checks.
Examples of a unenrolled individual? - CORRECT ANSWER - Individuals of their
immediate family, an officer of a corporation, a designated partnership representative, full-time
employee may represent their employer, if it is Sherry, individual that has representation that
takes place outside the United States.
Who cannot practice before the IRS? - CORRECT ANSWER - Individuals who are not
eligible or lost privilege, corporations, associations, partnerships, and other non-individuals.
, What professionals have unlimited representation rights? - CORRECT ANSWER -
Enrolled agents, attorneys, and CPA's.
Form 2587 - CORRECT ANSWER - Application for Special Enrollment Examination
Form 23, application for enrollment to practice before the internal revenue service. - CORRECT
ANSWER - Used for individuals who have passed the examination or are applying based
on past service.
Once enrolled, how often do practitioners need to renew their enrollment? - CORRECT
ANSWER - Under a three year enrollment cycle.
What determines when a renewal happens? - CORRECT ANSWER - It depends on the last
digit of the Social Security number, or EIN of a practitioner.
The IRS processes applications for renewal between what two dates? - CORRECT
ANSWER - November 1 and January 31
Renewed enrollments are effective as of what date following the period and application? -
CORRECT ANSWER - April 1
How often do tax return prepares renew their PTIN number? - CORRECT ANSWER -
Annually
IRS requires an EA to complete a minimum of how many hours of CPE and how many hours of
that needs to be for ethics and professional conduct.? - CORRECT ANSWER - 16 hours
total and two of those hours needs to be for ethics for professional conduct
Questions and CORRECT Answers
FORM 8879- IRS e-file Signature Authorization - CORRECT ANSWER - Authorizes an
ERO to enter the taxpayers PIN on individual income tax returns
Form 8878 - CORRECT ANSWER - Authorizes an ERO to enter the taxpayers pin on
extension forms 4868 and 2350
Resubmit every check to return without additional signatures if the amounts for total income is
not more than how much? - CORRECT ANSWER - 50 dollars
If the ER O does not require additional signatures to resubmit the reject return, if the amounts of
income tax, withheld or amount, you owe different, no more than how many dollars? -
CORRECT ANSWER - 14 dollars
How long must form 8879 be available to the IRS? - CORRECT ANSWER - 3 years
Safeguard Rule - CORRECT ANSWER - Requires that financial institutions develop,
implement and maintain an information security program.
The IRS six security, privacy and business standards to better serve taxpayers? - CORRECT
ANSWER - Extended validation SSL certificate, external vulnerability scan, information
privacy and safeguard policies, protection against bulk filing or fraudulent income tax returns,
public domain name registration, reporting of security incidents.
Identity protection pin, IPPIN - CORRECT ANSWER - A six digit number that prevents
someone else from filing a tax return, using a taxpayers Social Security number. The IRS uses
the IPPIN to verify identity when a taxpayer files and electronic or paper tax return.
Form 14039 - CORRECT ANSWER - Identity Theft Affidavit
,Where to place a fraud alert on credit reports for businesses - CORRECT ANSWER - Dun
and Brad Street, Equifax, experian, Trans Union.
If an individual suspects identity theft, what are the three major credit bureaus they should place
a fraud alert with? - CORRECT ANSWER - Equifax, experian, trans union.
FTC, financial privacy rule, requires financial institutions, including tax return prepares to do
what? - CORRECT ANSWER - Give their customers privacy notices
The IRS return preparer office RPO - CORRECT ANSWER - Responsible for issuing
PTINS, acting on applications for enrollment and administering AFSP testing and continuing
education
The office of professional responsibility - CORRECT ANSWER - They are responsible for
the enforcement of curricular,230 conduct issues
Who may practice before the IRS? - CORRECT ANSWER - Attorneys, CPAs, enrolled
agents, and enrolled actuaries, Low income tax pair, clinic student interns, IRS annual filing
season program.
Unenrolled return preparer cannot? - CORRECT ANSWER - Represent a taxpayer,
execute, closing agreements, extend the statutory. For tax assessment, or collection of tax,
execute waivers, execute claims for refund, receive refund checks.
Examples of a unenrolled individual? - CORRECT ANSWER - Individuals of their
immediate family, an officer of a corporation, a designated partnership representative, full-time
employee may represent their employer, if it is Sherry, individual that has representation that
takes place outside the United States.
Who cannot practice before the IRS? - CORRECT ANSWER - Individuals who are not
eligible or lost privilege, corporations, associations, partnerships, and other non-individuals.
, What professionals have unlimited representation rights? - CORRECT ANSWER -
Enrolled agents, attorneys, and CPA's.
Form 2587 - CORRECT ANSWER - Application for Special Enrollment Examination
Form 23, application for enrollment to practice before the internal revenue service. - CORRECT
ANSWER - Used for individuals who have passed the examination or are applying based
on past service.
Once enrolled, how often do practitioners need to renew their enrollment? - CORRECT
ANSWER - Under a three year enrollment cycle.
What determines when a renewal happens? - CORRECT ANSWER - It depends on the last
digit of the Social Security number, or EIN of a practitioner.
The IRS processes applications for renewal between what two dates? - CORRECT
ANSWER - November 1 and January 31
Renewed enrollments are effective as of what date following the period and application? -
CORRECT ANSWER - April 1
How often do tax return prepares renew their PTIN number? - CORRECT ANSWER -
Annually
IRS requires an EA to complete a minimum of how many hours of CPE and how many hours of
that needs to be for ethics and professional conduct.? - CORRECT ANSWER - 16 hours
total and two of those hours needs to be for ethics for professional conduct
