Irs Enrolled Agent Unit 1 Exam Questions Answered Correctly Latest Update 2026

IRS ENROLLED AGENT UNIT 1 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Which of the following is not a requirement for a spouse to be eligible for innocent spouse relief? A. When the taxpayer signed the return, he or she did not know, and had no reason to know, tat there was an understatement of tax. B. The taxpayer must have filed as either MFJ or MFS. C. The return had an understatement of tax directly related to the spouse's erroneous items. D. The facts and circumstances show that it would be unfair for the IRS to hold the taxpayer liable for the understatement. - Answers B. Innocent spouse relief is available only for a spouse who has filed jointly and is therefore legally liable for the understatement of tax. To qualify for innocent spouse relief, the taxpayer must meet all of the following conditions: 1. The taxpayer filed a joint return that has an understatement of tax directly related tot he spouse's erroneous items. 2. The taxpayer establishes that, at the time of signing the joint return, he or she did not know, and had no reason to know, that there was an understatement of tax. 3. Taking into account all the facts and circumstances, it would be unfair for the IRS to hold the taxpayer liable for the understatement. In order to qualify for innocent spouse relief, a taxpayer must submit Form 8857, Request for Innocent Spouse Relief, and sign it under penalty of perjury. Catherine files an extension request (Form 4868), which allows her an additional six months to file her tax return. When she finally prepares her return, she realizes she owes a substantial amount of tax. She pays the tax when she files the return, which she does before the extended due date. Which penalties, if any, will Catherine be likely to owe? A. She will owe interest on the amount owed and a late payment penalty. B. She will owe interest on the amount owed and a late filing penalty. C. She will owe interest on the amount owed, a late payment penalty, and a late filing penalty. D. She will not owe any penalties because she filed before the extended due date and paid the taxes with the return. - Answers A. Even though she files Form 4868, Catherine may owe interest and a late payment penalty on the amount owed if she does not pay the tax due by the regular due date. However, she will not be assessed a late filing penalty (failure-to-file) because she filed her tax return before the extended due date. Isla files as single and has no refundable credits. She is not self-employed. Based on the figures below, is she required to pay estimated tax in the current year? AGI for prior tax year = $73,700 Total tax on prior year return = 9224 Anticipated AGI for current year = 82,800 Total current year estimated tax liability = 11,270 Tax expected to be withheld in current year = 10,250 A. Yes, she is required to make estimated tax payments. B. No, she is not required to make estimated tax payments. C. She is not required to make estimated tax payments because she does not have self-employment income. D. None of the above is correct. - Answers B. Isla does not need to pay estimated tax because she expects her income tax withholding in the current year ($10,250) to be greater than both 90% of the tax to be shown on her current year return ($11,270 x 90% = $10,143) and 100% of her prior year tax liability ($9,224). Therefore, Isla qualifies for the safe harbor rule and is not required to make estimated tax payments. A taxpayer is not required to pay estimated tax if: * the taxpayer had no tax liability in the prior year, *the taxpayer was a US citizen or resident alien, and *the prior tax year covered a 12-month period. A taxpayer also does not have to pay estimated tax if she pays enough through withholding so that the tax due on the return is less than $1,000. In most cases, a taxpayer must pay estimated tax if she expects withholding (plus any refundable credits) to be less than the smaller of: *90% of the tax to be shown on the current year tax return, or *100% of the tax shown on the prior year tax return. Generally, how long should taxpayers keep the supporting documentation for their tax returns? A. Four years from the date the return was filed or the return was due, whichever is later. B. Three years from the date the return was filed or the return was due, whichever is later. C. Two years from the date the return was filed or the return was due, whichever is later. D. At least one year from the date the return was filed. - Answers B. Taxpayers should keep the supporting documentation for their tax returns for at least three years from the date the return was filed or three years from the date the return was due, whichever is later. This includes applicable worksheets, receipts, and other forms. Ricky files his 2015 tax return on February 15, 2016. He has a balance due of $800 on the return. How long can he wait to pay the amount owed and not incur a penalty? A. He will owe a late payment penalty unless he pays his tax liability when he files his return. B. He has until the due date of the return (not including extensions) to pay the amount owed and not pay a penalty. C. He has until the due date of the return (including extensions) to pay the amount owed and not pay a penalty. D. He does not have to pay the amount due by a certain date, because it is less than the safe harbor amount of $1,000. - Answers B. Ricky has until the original due date of the return (not including extensions) to pay the amount owed and not incur a penalty. Taxpayers should submit their payment of taxes due on or before April 15 (or the next business day if April 15 falls on a Saturday, Sunday, or a legal holiday). For the 2015 tax year, taxpayers have until April 18, 2016, to pay the amount he owes. Which of the following taxpayers is required to have an individual taxpayer identification number (ITIN)? A. A nonresident alien with a Social Security number who moves outside the US. B. A nonresident alien who must file a return and is not eligible for a valid Social Security number. C. Anyone who does not have a Social Security number. D. All nonresident and resident aliens. - Answers B. If a taxpayer must file a US tax return or is listed on a tax return as a spouse or dependent and is not eligible for a Social Security number, he must apply for an ITIN.