EA Exam Part 3 Questions and Answers
Form i8867 i- iCorrect iAnswers i-Paid iPreparer's iDue iDiligence iChecklist. iIncludes inew
iquestions ifor iboth ithe iHead iof iHousehold ifiling istatus iand ithe inew iCredit ifor iOther
iDependents. iRetroactive! i(for iHoH ianyways)
Penalty ifor ifailure ito imeet idue idiligence irequirements i- iCorrect iAnswers i-$520 iper
ifailure
New iRequirements ifor iChild iTax iCredit/Additional iChild iTax iCredit i- iCorrect iAnswers
i-Child imust ihave iSSN i(ITIN ior iATIN iworks ifor iODC)
Time ito ifile iclaim ifor iwrongful ilevy ior iseizure i- iCorrect iAnswers i-two iyears
Passport iRevocation i- iCorrect iAnswers i-The iIRS ihas ito inotify ithe iUS idept. iof istate iof
itaxpayers iwho iowe ia iseriously idelinquent itax idebt. iThey ican ithen irevoke ior ideny
ipassport. iThe ithreshold ifor i2018 iis i$52,000
Centralized iAudit iRegime i- iCorrect iAnswers i-Mandatory ifor ipartnerships iabove i100
ipartners. i(100 ior ifewer ican ielect iout iof ithis inew iregime). iIf ianything iis iadjusted, iit iis
iassessed iand icollected iat ithe ipartnership ilevel i(instead iof igoing iafter iindividual
ipartners)
Title i26 i- iCorrect iAnswers i-Internal iRevenue iCode i- imain ibody iof itax ilaw iof ithe
iUnited iStates
Title i31 i- iCorrect iAnswers i-FinCEN iand iFBAR i- iInternational ifinancial ireporting ilaws
Primary iAuthority i- iCorrect iAnswers i-the ilaw iitself, iInternal iRevenue iCode
Substantial iAuthority i- iCorrect iAnswers i-Can iserve ias ibasis ifor iinterpretation iof
icurrent itax ilaw iand ito iestablish iprecedents ifor ithe ifuture.
1. iTreasury iRegulations
2. iRevenue iRulings
3. iRevenue iProcedures
4. iPrivate iLetter iRulings
5. iTechnical iAdvice iMemoranda i(TAMS)
6. iIRS iNotices
, Treasury iRegulations i- iCorrect iAnswers i-The iofficial iinterpretation iof ia istatutory itax
irule iwritten iand ipublished iby ithe iU.S. iTreasury. iPublished iin ithe iFederal iRegister.
Types iof iTreasury iRegulations i- iCorrect iAnswers i-1. iLegislative iRegulations
2. iInterpretive iRegulations
3. iProcedural iRegulations
Who iis ibound iby iIRS iregulations? i- iCorrect iAnswers i-The iIRS i(the icourts iare inot)
Classification iof iTreasury iRegulations i- iCorrect iAnswers i-Proposed
Temporary
Final
Revenue iRulings iand iRevenue iProcedures i- iCorrect iAnswers i-Can ibe iused iby
itaxpayers ias iguidance ito iavoid icertain iaccuracy irelated ipenalties
Technical iAdvice iMemoranda i(TAMs) i- iCorrect iAnswers i-TAMs iare iissued iby ithe iIRS
iin iresponse ito iquestions iraised iby iIRS ifield ipersonnel iduring iaudits. iThey ideal iwith
icompleted irather ithan iproposed itransactions iand iare ioften irequested ifor iquestions
irelated ito iexempt iorganizations iand iemployee iplans.
Private iLetter iRuling i(PLR) i- iCorrect iAnswers i-The iIRS's iwritten iresponse ito ia
itaxpayer's iinquiry ias ito ihow ithe itax ilaw iapplies ito ia iproposed itransaction. i$$$$
Internal iRevenue iManual i(IRM) i- iCorrect iAnswers i-Policies, iprocedures iand
iguidelines igoverning ithe ioperations iand iorganization iof ithe iIRS. iUsed iby iIRS
iemployees
IRS ipublications iand iforms.... i- iCorrect iAnswers i-are inot iconsidered isubstantial
iauthority!
IRS iDivisions i- iCorrect iAnswers i-1. iLarge iBusiness i& iInternational iDivision
2. iSmall iBusiness iand iSelf-Employed iDivision
3. iWage iand iInvestment iDivision
4. iTax iExempt iand iGovernment iEntities iDivision
Taxpayer iAdvocate iService i- iCorrect iAnswers i-Independent iorganization iwithin iIRS
iwho ican ihelp iresolve iproblems. iCan icall ior iuse iForm i911. iTaxpayer ihas ito ibe iin
iimmediate ithreat, iexperiencing ieconomic iharm, ihas ihad ilong idelay, ietc. iBIG iDEAL
Practice ibefore ithe iIRS iincludes: i- iCorrect iAnswers i-1. iCorresponding iand
icommunicating iwith ithe iIRS
2. iRepresenting ia itaxpayer iat iconference, ihearing, imeetings
3. iPreparing iand ifiling iDOCUMENTS iwith iIRS
4. iProviding iwritten iadvice ithat ihas ipotential ifor itax iavoidance ior ievasion
Form i8867 i- iCorrect iAnswers i-Paid iPreparer's iDue iDiligence iChecklist. iIncludes inew
iquestions ifor iboth ithe iHead iof iHousehold ifiling istatus iand ithe inew iCredit ifor iOther
iDependents. iRetroactive! i(for iHoH ianyways)
Penalty ifor ifailure ito imeet idue idiligence irequirements i- iCorrect iAnswers i-$520 iper
ifailure
New iRequirements ifor iChild iTax iCredit/Additional iChild iTax iCredit i- iCorrect iAnswers
i-Child imust ihave iSSN i(ITIN ior iATIN iworks ifor iODC)
Time ito ifile iclaim ifor iwrongful ilevy ior iseizure i- iCorrect iAnswers i-two iyears
Passport iRevocation i- iCorrect iAnswers i-The iIRS ihas ito inotify ithe iUS idept. iof istate iof
itaxpayers iwho iowe ia iseriously idelinquent itax idebt. iThey ican ithen irevoke ior ideny
ipassport. iThe ithreshold ifor i2018 iis i$52,000
Centralized iAudit iRegime i- iCorrect iAnswers i-Mandatory ifor ipartnerships iabove i100
ipartners. i(100 ior ifewer ican ielect iout iof ithis inew iregime). iIf ianything iis iadjusted, iit iis
iassessed iand icollected iat ithe ipartnership ilevel i(instead iof igoing iafter iindividual
ipartners)
Title i26 i- iCorrect iAnswers i-Internal iRevenue iCode i- imain ibody iof itax ilaw iof ithe
iUnited iStates
Title i31 i- iCorrect iAnswers i-FinCEN iand iFBAR i- iInternational ifinancial ireporting ilaws
Primary iAuthority i- iCorrect iAnswers i-the ilaw iitself, iInternal iRevenue iCode
Substantial iAuthority i- iCorrect iAnswers i-Can iserve ias ibasis ifor iinterpretation iof
icurrent itax ilaw iand ito iestablish iprecedents ifor ithe ifuture.
1. iTreasury iRegulations
2. iRevenue iRulings
3. iRevenue iProcedures
4. iPrivate iLetter iRulings
5. iTechnical iAdvice iMemoranda i(TAMS)
6. iIRS iNotices
, Treasury iRegulations i- iCorrect iAnswers i-The iofficial iinterpretation iof ia istatutory itax
irule iwritten iand ipublished iby ithe iU.S. iTreasury. iPublished iin ithe iFederal iRegister.
Types iof iTreasury iRegulations i- iCorrect iAnswers i-1. iLegislative iRegulations
2. iInterpretive iRegulations
3. iProcedural iRegulations
Who iis ibound iby iIRS iregulations? i- iCorrect iAnswers i-The iIRS i(the icourts iare inot)
Classification iof iTreasury iRegulations i- iCorrect iAnswers i-Proposed
Temporary
Final
Revenue iRulings iand iRevenue iProcedures i- iCorrect iAnswers i-Can ibe iused iby
itaxpayers ias iguidance ito iavoid icertain iaccuracy irelated ipenalties
Technical iAdvice iMemoranda i(TAMs) i- iCorrect iAnswers i-TAMs iare iissued iby ithe iIRS
iin iresponse ito iquestions iraised iby iIRS ifield ipersonnel iduring iaudits. iThey ideal iwith
icompleted irather ithan iproposed itransactions iand iare ioften irequested ifor iquestions
irelated ito iexempt iorganizations iand iemployee iplans.
Private iLetter iRuling i(PLR) i- iCorrect iAnswers i-The iIRS's iwritten iresponse ito ia
itaxpayer's iinquiry ias ito ihow ithe itax ilaw iapplies ito ia iproposed itransaction. i$$$$
Internal iRevenue iManual i(IRM) i- iCorrect iAnswers i-Policies, iprocedures iand
iguidelines igoverning ithe ioperations iand iorganization iof ithe iIRS. iUsed iby iIRS
iemployees
IRS ipublications iand iforms.... i- iCorrect iAnswers i-are inot iconsidered isubstantial
iauthority!
IRS iDivisions i- iCorrect iAnswers i-1. iLarge iBusiness i& iInternational iDivision
2. iSmall iBusiness iand iSelf-Employed iDivision
3. iWage iand iInvestment iDivision
4. iTax iExempt iand iGovernment iEntities iDivision
Taxpayer iAdvocate iService i- iCorrect iAnswers i-Independent iorganization iwithin iIRS
iwho ican ihelp iresolve iproblems. iCan icall ior iuse iForm i911. iTaxpayer ihas ito ibe iin
iimmediate ithreat, iexperiencing ieconomic iharm, ihas ihad ilong idelay, ietc. iBIG iDEAL
Practice ibefore ithe iIRS iincludes: i- iCorrect iAnswers i-1. iCorresponding iand
icommunicating iwith ithe iIRS
2. iRepresenting ia itaxpayer iat iconference, ihearing, imeetings
3. iPreparing iand ifiling iDOCUMENTS iwith iIRS
4. iProviding iwritten iadvice ithat ihas ipotential ifor itax iavoidance ior ievasion
