SEE Exam Part 3 Questions with
Complete Answers
Per Circular 230, continuing education credits are based on a ______________
credit hour. - Answer-Per Circular 230, continuing education credits are based on a
______________ credit hour.
Requirments for EA renewal - Answer-72 total hours of CE credits (including 2 ethics
hours per year and a minimum of 16 hours per year)
The first enrollment cycle must be 2 hours CE per month and 2 hours ethic per year
The IRS will accept a non-IRS power of attorney rather than Form 2848. However,
the document must include all of the following: - Answer-Taxpayer's name; mailing
address; taxpayer identification number; signature and date; a clear expression of
the taxpayer's intention concerning the scope of authority granted to the
representative; and a declaration of the representative.
A signed and dated statement made by the representative must also be attached to
the non-IRS power of attorney. In the statement, the representative declares the
following:
I am not currently under suspension or disbarment from practice before the Internal
Revenue Service or other practice of my profession by any other authority.
I am aware of the regulations contained in Circular 230.
I am authorized to represent the taxpayer(s) identified in the power of attorney, and
I am an individual described in 26 CFR 601.502(b).
The IRS has the legal authority to extend filing and payment deadlines in the
following circumstances: - Answer-For a member of the Armed Forces serving in a
combat zone or contingency operation.
For a citizen or resident alien working abroad.
For victims in certain disaster situations.
Frivolous Return Penalty - Answer-Roland faces a penalty of $5,000 ($10,000 if
MFJ) if he files a frivolous return or other frivolous submissions
if Roland makes frivolous arguments before the U.S. Tax Court he could face a
penalty of up to $25,000 under IRC §6673.
All paper checks or money orders sent to the IRS should include - Answer-the
taxpayer's phone number, SSN/EIN, tax return type, and relevant tax year, and be
made payable to "United States Treasury."
Form 1127 - Answer-A taxpayer who is unable to pay his tax deficiency can file Form
1127, Application for Extension of Time for Payment of Tax Due to Hardship, by the
due date of his return, or by the due date for the amount determined as a deficiency.
The IRS generally will not grant an extension of more than six months to pay the tax
shown on a return. An extension to pay an amount determined as a deficiency is
, generally limited to 18 months from the date payment is due, and would only be
granted in extraordinary circumstances.
Form 9424 - Answer-To appeal an installment agreement that has been terminated,
Hasan should complete Form 9423, Collection Appeal Request.
The IRS Collection Appeals Program (CAP) is available for a wide range of collection
actions, such as: before (or after) the IRS levies or seizes a taxpayer's property, as
well as other instances such as after the termination or rejection of an installment
agreement.
How long does a taxpayer have to request a CDP hearing after receiving an IRS
collection notice? - Answer-A taxpayer has 30 days from the date of an IRS
collection notice to request a Collection Due Process (CDP) hearing.
Form 483 - Answer-Claim for Refund and Request for Abatement to request a refund
of excess withholding.
Note: If a taxpayer's Social Security tax overpayment was due to a single employer
withholding more than the maximum Social Security tax for the year, and the
employer will not adjust the over-collection, the taxpayer can file Form 843 to request
a refund of the erroneously withheld amounts. If an employee was over-withheld
because he worked for two or more employers and his total wages and
compensation were over the wage base limit for the year, then filing the Form 843 is
not necessary. In that case, the taxpayer can just claim the excess as a credit
against their income tax return.
How long does taxpayer have to request equitable relief? How long does it take to
get - Answer-Ten years from the date the tax was assessed.Equitable relief is one of
the three types of innocent spouse relief. The IRS has expanded the length of time to
request equitable relief. The time depends on whether a taxpayer is seeking relief
from a balance due or seeking a credit or refund, as follows:
Form 433-A - Answer-An individual taxpayer who is applying for an offer in
compromise must also file Form 433-A, Collection Information Statement for Wage
Earners and Self-Employed Individuals.
Doubt to liability - Answer-
Doubt to collectibility - Answer-Doubt as to collectibility exists in any case where the
taxpayer's assets and income are less than the full amount of the tax liability, and it
is unlikely that the taxpayer would be able to satisfy the debt within the statute of
limitations for the IRS to collect the debt.
The IRS has the burden of proof in court proceedings resulting from an examination,
if the taxpayer has met the following requirements: - Answer-If a corporation,
partnership, or trust, the taxpayer had a net worth of $7 million or less (not $10
million) and not more than 500 employees at the time the tax liability is contested in
any court proceeding.
The taxpayer introduced credible evidence relating to the issue.
Complete Answers
Per Circular 230, continuing education credits are based on a ______________
credit hour. - Answer-Per Circular 230, continuing education credits are based on a
______________ credit hour.
Requirments for EA renewal - Answer-72 total hours of CE credits (including 2 ethics
hours per year and a minimum of 16 hours per year)
The first enrollment cycle must be 2 hours CE per month and 2 hours ethic per year
The IRS will accept a non-IRS power of attorney rather than Form 2848. However,
the document must include all of the following: - Answer-Taxpayer's name; mailing
address; taxpayer identification number; signature and date; a clear expression of
the taxpayer's intention concerning the scope of authority granted to the
representative; and a declaration of the representative.
A signed and dated statement made by the representative must also be attached to
the non-IRS power of attorney. In the statement, the representative declares the
following:
I am not currently under suspension or disbarment from practice before the Internal
Revenue Service or other practice of my profession by any other authority.
I am aware of the regulations contained in Circular 230.
I am authorized to represent the taxpayer(s) identified in the power of attorney, and
I am an individual described in 26 CFR 601.502(b).
The IRS has the legal authority to extend filing and payment deadlines in the
following circumstances: - Answer-For a member of the Armed Forces serving in a
combat zone or contingency operation.
For a citizen or resident alien working abroad.
For victims in certain disaster situations.
Frivolous Return Penalty - Answer-Roland faces a penalty of $5,000 ($10,000 if
MFJ) if he files a frivolous return or other frivolous submissions
if Roland makes frivolous arguments before the U.S. Tax Court he could face a
penalty of up to $25,000 under IRC §6673.
All paper checks or money orders sent to the IRS should include - Answer-the
taxpayer's phone number, SSN/EIN, tax return type, and relevant tax year, and be
made payable to "United States Treasury."
Form 1127 - Answer-A taxpayer who is unable to pay his tax deficiency can file Form
1127, Application for Extension of Time for Payment of Tax Due to Hardship, by the
due date of his return, or by the due date for the amount determined as a deficiency.
The IRS generally will not grant an extension of more than six months to pay the tax
shown on a return. An extension to pay an amount determined as a deficiency is
, generally limited to 18 months from the date payment is due, and would only be
granted in extraordinary circumstances.
Form 9424 - Answer-To appeal an installment agreement that has been terminated,
Hasan should complete Form 9423, Collection Appeal Request.
The IRS Collection Appeals Program (CAP) is available for a wide range of collection
actions, such as: before (or after) the IRS levies or seizes a taxpayer's property, as
well as other instances such as after the termination or rejection of an installment
agreement.
How long does a taxpayer have to request a CDP hearing after receiving an IRS
collection notice? - Answer-A taxpayer has 30 days from the date of an IRS
collection notice to request a Collection Due Process (CDP) hearing.
Form 483 - Answer-Claim for Refund and Request for Abatement to request a refund
of excess withholding.
Note: If a taxpayer's Social Security tax overpayment was due to a single employer
withholding more than the maximum Social Security tax for the year, and the
employer will not adjust the over-collection, the taxpayer can file Form 843 to request
a refund of the erroneously withheld amounts. If an employee was over-withheld
because he worked for two or more employers and his total wages and
compensation were over the wage base limit for the year, then filing the Form 843 is
not necessary. In that case, the taxpayer can just claim the excess as a credit
against their income tax return.
How long does taxpayer have to request equitable relief? How long does it take to
get - Answer-Ten years from the date the tax was assessed.Equitable relief is one of
the three types of innocent spouse relief. The IRS has expanded the length of time to
request equitable relief. The time depends on whether a taxpayer is seeking relief
from a balance due or seeking a credit or refund, as follows:
Form 433-A - Answer-An individual taxpayer who is applying for an offer in
compromise must also file Form 433-A, Collection Information Statement for Wage
Earners and Self-Employed Individuals.
Doubt to liability - Answer-
Doubt to collectibility - Answer-Doubt as to collectibility exists in any case where the
taxpayer's assets and income are less than the full amount of the tax liability, and it
is unlikely that the taxpayer would be able to satisfy the debt within the statute of
limitations for the IRS to collect the debt.
The IRS has the burden of proof in court proceedings resulting from an examination,
if the taxpayer has met the following requirements: - Answer-If a corporation,
partnership, or trust, the taxpayer had a net worth of $7 million or less (not $10
million) and not more than 500 employees at the time the tax liability is contested in
any court proceeding.
The taxpayer introduced credible evidence relating to the issue.
