Enrolled Agent Exam Part 3
Who can represent an individual in front of the IRS without a power of attorney? -
CORRECT ANSWER-Immediate 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? - CORRECT ANSWER-The regulation in Treasury
Department Circular No. 230.
When applying for an installment agreement, when is form 433-F, Collection
Information Statement, required to be filed? - CORRECT ANSWER-The 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? - CORRECT ANSWER-30 days
When is the IRS able to file a tax lien? - CORRECT ANSWER-The 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? -
CORRECT ANSWER-10 years
What information can an authorized e-file provider update with the IRS by letter
instead of online? - CORRECT 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? - CORRECT ANSWER-This 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? -
, CORRECT 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.
- Registered tax return preparers
- Disqualified appraisers
- Qualified continuing education providers
What is needed for the IRS to fully evaluate an offer in compromise? - CORRECT
ANSWER-The 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? - CORRECT 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? - CORRECT ANSWER-The refund can be split in up to three
qualified accounts. Qualified accounts include checking, savings, IRA, HSA,
Archer MSA, Coverdell education savings account or TreasuryDirect online
account. The taxpayer can also use it to purchase up to $5,000 is U.S. series
bonds.
How long to you have to protest the denial of your Enrolled Agent Application? -
CORRECT ANSWER-You must write a formal written protest as prescribed by the
Internal Revenue Service within 30 days after receipt of the denial.
Who is a "responsible official?" - CORRECT ANSWER-A responsible official is
someone who has an authority over the Authorized E-Filer Providers e-file
operation at a location, is the first point of contact with the IRS, and has authority
to sign revised IRS e-file applications. A responsible official ensures that the
provider adheres to the provisions of the revenue procedure as well as all the
publications and notices governing IRS e-file.
Who can represent an individual in front of the IRS without a power of attorney? -
CORRECT ANSWER-Immediate 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? - CORRECT ANSWER-The regulation in Treasury
Department Circular No. 230.
When applying for an installment agreement, when is form 433-F, Collection
Information Statement, required to be filed? - CORRECT ANSWER-The 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? - CORRECT ANSWER-30 days
When is the IRS able to file a tax lien? - CORRECT ANSWER-The 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? -
CORRECT ANSWER-10 years
What information can an authorized e-file provider update with the IRS by letter
instead of online? - CORRECT 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? - CORRECT ANSWER-This 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? -
, CORRECT 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.
- Registered tax return preparers
- Disqualified appraisers
- Qualified continuing education providers
What is needed for the IRS to fully evaluate an offer in compromise? - CORRECT
ANSWER-The 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? - CORRECT 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? - CORRECT ANSWER-The refund can be split in up to three
qualified accounts. Qualified accounts include checking, savings, IRA, HSA,
Archer MSA, Coverdell education savings account or TreasuryDirect online
account. The taxpayer can also use it to purchase up to $5,000 is U.S. series
bonds.
How long to you have to protest the denial of your Enrolled Agent Application? -
CORRECT ANSWER-You must write a formal written protest as prescribed by the
Internal Revenue Service within 30 days after receipt of the denial.
Who is a "responsible official?" - CORRECT ANSWER-A responsible official is
someone who has an authority over the Authorized E-Filer Providers e-file
operation at a location, is the first point of contact with the IRS, and has authority
to sign revised IRS e-file applications. A responsible official ensures that the
provider adheres to the provisions of the revenue procedure as well as all the
publications and notices governing IRS e-file.
