Enrolled Agent Part 1 Questions and
Answers 100% Pass
What form must be filed by an individual to grant an Enrolled Agent the authority to represent
them before the IRS?
✔✔Form 2848 (Power of Attorney and Declaration of Representative).
What is the deadline for an individual to file their tax return for the year 2024?
✔✔April 18, 2025.
What are the IRS’s three types of penalties that a taxpayer might incur?
✔✔Failure-to-file penalty, failure-to-pay penalty, and accuracy-related penalty.
What is the maximum amount that can be deducted from a taxpayer’s taxable income for
medical expenses?
✔✔Medical expenses in excess of 7.5% of Adjusted Gross Income (AGI).
What is the tax treatment of Social Security benefits for most taxpayers?
✔✔Social Security benefits may be taxable if the taxpayer’s income exceeds a certain threshold.
1
,What is the standard deduction for a married couple filing jointly in 2022?
✔✔$25,900.
What is the taxability of life insurance proceeds upon the death of the insured?
✔✔Life insurance proceeds are generally not taxable to the beneficiary.
How long does the IRS have to audit a taxpayer’s return after it has been filed?
✔✔The IRS has three years from the date of filing or the due date of the return, whichever is
later.
What is the purpose of Form 1040X?
✔✔Form 1040X is used to amend a previously filed tax return.
What types of income are excluded from taxable income?
✔✔Gifts, inheritances, and certain life insurance proceeds are generally excluded from taxable
income.
2
,What is the purpose of Form 8862, and when is it required?
✔✔Form 8862 is used to claim the Earned Income Tax Credit (EITC) after a previous
disallowance.
What is the tax treatment of child support payments?
✔✔Child support payments are not taxable to the recipient and not deductible by the payer.
How are capital gains taxed for an individual?
✔✔Long-term capital gains are taxed at favorable rates of 0%, 15%, or 20%, depending on
income level. Short-term capital gains are taxed as ordinary income.
What are the conditions for claiming a deduction for student loan interest?
✔✔The taxpayer must have paid interest on a qualified student loan and meet income
requirements.
What is the penalty for underpayment of estimated taxes?
✔✔The penalty for underpayment of estimated taxes is based on the amount of the
underpayment and the length of time it remains unpaid.
3
, What is the maximum contribution allowed to a traditional IRA in 2022?
✔✔$6,000 for individuals under age 50, or $7,000 for individuals age 50 or older.
What is the penalty for failing to file a tax return on time?
✔✔The failure-to-file penalty is 5% of the unpaid tax for each month the return is late, up to a
maximum of 25%.
How does the IRS handle disputes over an individual’s tax liability?
✔✔The IRS may initiate an audit or appeal process and allow taxpayers to present evidence to
support their claims.
What are the requirements for a taxpayer to qualify for the Child Tax Credit in 2022?
✔✔The taxpayer must have a qualifying child under age 17 and meet income limits.
What is the procedure for a taxpayer to appeal an IRS audit decision?
✔✔The taxpayer can request an appeal through the IRS Office of Appeals or take the case to the
U.S. Tax Court.
4
Answers 100% Pass
What form must be filed by an individual to grant an Enrolled Agent the authority to represent
them before the IRS?
✔✔Form 2848 (Power of Attorney and Declaration of Representative).
What is the deadline for an individual to file their tax return for the year 2024?
✔✔April 18, 2025.
What are the IRS’s three types of penalties that a taxpayer might incur?
✔✔Failure-to-file penalty, failure-to-pay penalty, and accuracy-related penalty.
What is the maximum amount that can be deducted from a taxpayer’s taxable income for
medical expenses?
✔✔Medical expenses in excess of 7.5% of Adjusted Gross Income (AGI).
What is the tax treatment of Social Security benefits for most taxpayers?
✔✔Social Security benefits may be taxable if the taxpayer’s income exceeds a certain threshold.
1
,What is the standard deduction for a married couple filing jointly in 2022?
✔✔$25,900.
What is the taxability of life insurance proceeds upon the death of the insured?
✔✔Life insurance proceeds are generally not taxable to the beneficiary.
How long does the IRS have to audit a taxpayer’s return after it has been filed?
✔✔The IRS has three years from the date of filing or the due date of the return, whichever is
later.
What is the purpose of Form 1040X?
✔✔Form 1040X is used to amend a previously filed tax return.
What types of income are excluded from taxable income?
✔✔Gifts, inheritances, and certain life insurance proceeds are generally excluded from taxable
income.
2
,What is the purpose of Form 8862, and when is it required?
✔✔Form 8862 is used to claim the Earned Income Tax Credit (EITC) after a previous
disallowance.
What is the tax treatment of child support payments?
✔✔Child support payments are not taxable to the recipient and not deductible by the payer.
How are capital gains taxed for an individual?
✔✔Long-term capital gains are taxed at favorable rates of 0%, 15%, or 20%, depending on
income level. Short-term capital gains are taxed as ordinary income.
What are the conditions for claiming a deduction for student loan interest?
✔✔The taxpayer must have paid interest on a qualified student loan and meet income
requirements.
What is the penalty for underpayment of estimated taxes?
✔✔The penalty for underpayment of estimated taxes is based on the amount of the
underpayment and the length of time it remains unpaid.
3
, What is the maximum contribution allowed to a traditional IRA in 2022?
✔✔$6,000 for individuals under age 50, or $7,000 for individuals age 50 or older.
What is the penalty for failing to file a tax return on time?
✔✔The failure-to-file penalty is 5% of the unpaid tax for each month the return is late, up to a
maximum of 25%.
How does the IRS handle disputes over an individual’s tax liability?
✔✔The IRS may initiate an audit or appeal process and allow taxpayers to present evidence to
support their claims.
What are the requirements for a taxpayer to qualify for the Child Tax Credit in 2022?
✔✔The taxpayer must have a qualifying child under age 17 and meet income limits.
What is the procedure for a taxpayer to appeal an IRS audit decision?
✔✔The taxpayer can request an appeal through the IRS Office of Appeals or take the case to the
U.S. Tax Court.
4
