SEE 3 - IRS Practice Questions
A new consumer visits an enrolled agent (EA). The taxpayer believes that the U.S. Tax gadget
is purely voluntary and filed a return showing no profits tax, soliciting for all withholding be
refunded. The IRS assessed a $five,000 frivolous return penalty. The taxpayer has acquired a
Notice of Intent to Levy and Right to Collection Due Process (CDP) Hearing concerning the
$five,000 penalty. The taxpayer desires the EA to offer the preceding arguments about the tax
machine in the CDP hearing request. Which of the subsequent is a accurate assertion
concerning the CDP listening to request elevating arguments formerly deemed frivolous?
(A)If the IRS gives the taxpayer with word that the CDP request is frivolous, the taxpayer will be
given 30 days to withdraw or amend the CDP request for you to avoid a frivolous submission
penalty
(B) The EA might no longer be subject to a frivolous submission penalty by using submitting the
CDP listening to request
(C) - ANS-Key: A
References: IRC §§ 6330(g), 6702
A taxpayer filed an attraction of an IRS exam after which signed Form 8821, Tax Information
Authorization, authorizing an unenrolled go back preparer to get hold of the taxpayer's tax facts
associated with the matter earlier than Appeals. Which of the following is accurate?
(A) The unenrolled return preparer might also constitute the customer before IRS Appeals
based totally on the Form 8821
(B) The unenrolled go back preparer may additionally constitute the client before IRS Appeals
with the oral consent of the consumer
(C) The unenrolled go back preparer may additionally represent the consumer before IRS
Appeals with a be aware connected with the aid of the patron
(D) The unenrolled return preparer may not represent the client before IRS Appeals - ANS-Key:
D
References: Form 2848 Instructions pg. 2
A taxpayer is provided a $three hundred in keeping with month mileage allowance for
commercial enterprise tour from corporation. In order for this to be a non-taxable item, which of
the subsequent should be proper?
(A) The taxpayer ought to go back any excess repayment inside 180 days after the expense
become paid or incurred
(B) The taxpayer must adequately account for the fees within 60 days when they have been
paid or incurred
(C) The taxpayer must receive the development inside 60 days of the time the taxpayer has the
fee
(D) The taxpayer should competently account for the prices within 120 days once they have
been paid or incurred - ANS-Key: B
References: Publication 463 Chapter 6 Page 29
, A taxpayer received a word from the IRS pointing out a prior yr's tax return had been tested and
that an adjustment turned into made growing the quantity of tax by $2,560. The taxpayer
disagrees with the adjustment. The taxpayer should request an audit reconsideration in all of the
following conditions EXCEPT:
(A) The full amount owed has already been paid
(B) There is new documentation for the exam
(C) They neither seemed for the examination nor despatched records to the IRS
(D) They moved and in no way obtained the exam note - ANS-Key: A
References: Publication 3598
An enrolled agent (EA) can constitute a taxpayer:
(A) Before any administrative degree of the IRS
(B) Only if the EA organized the go back below exam
(C) At all tax-related federal court lawsuits
(D) Before collections, examinations, and the Tax Court - ANS-Key: A
References: Publication 947, pages three and 7; Cir. 230, sections 10.2(a)(four), 10.3(c) &
10.32
An enrolled agent (EA) is in the manner of representing a taxpayer earlier than the Internal
Revenue Service for a tax count number. The taxpayer's ex-husband also asked the EA to
symbolize him for the equal count. All of the following are required for the EA to symbolize them
both EXCEPT:
(A) The EA ought to notify the Office of Professional Responsibility that the EA may be
representing both taxpayers
(B) Both taxpayers have to waive the struggle of interest and provide knowledgeable consent in
writing to the EA
(C) The EA should moderately consider that the EA could be able to offer capable and diligent
representation to each taxpayers
(D) The representation isn't always prohibited with the aid of law - ANS-Key: A
References: Cir. 230, Section 10.29
An enrolled agent (EA) organized an man or woman profits tax return for a taxpayer with a
stability due of $25,597. The taxpayer is not capable of pay the whole amount upon filing and
would like to installation an installment settlement. Which of the following statements are correct
in regards to this settlement?
(A) Since the taxpayer owed more than $25,000 the taxpayer might not observe on line
(B) The taxpayer will now not be charged a person charge to set up this installment agreement
(C) The taxpayer need to be in filing compliance
(D) The taxpayer will no longer be charged interest and penalties while making installment
payments - ANS-Key: C
References: Publication 594 Page 3
A new consumer visits an enrolled agent (EA). The taxpayer believes that the U.S. Tax gadget
is purely voluntary and filed a return showing no profits tax, soliciting for all withholding be
refunded. The IRS assessed a $five,000 frivolous return penalty. The taxpayer has acquired a
Notice of Intent to Levy and Right to Collection Due Process (CDP) Hearing concerning the
$five,000 penalty. The taxpayer desires the EA to offer the preceding arguments about the tax
machine in the CDP hearing request. Which of the subsequent is a accurate assertion
concerning the CDP listening to request elevating arguments formerly deemed frivolous?
(A)If the IRS gives the taxpayer with word that the CDP request is frivolous, the taxpayer will be
given 30 days to withdraw or amend the CDP request for you to avoid a frivolous submission
penalty
(B) The EA might no longer be subject to a frivolous submission penalty by using submitting the
CDP listening to request
(C) - ANS-Key: A
References: IRC §§ 6330(g), 6702
A taxpayer filed an attraction of an IRS exam after which signed Form 8821, Tax Information
Authorization, authorizing an unenrolled go back preparer to get hold of the taxpayer's tax facts
associated with the matter earlier than Appeals. Which of the following is accurate?
(A) The unenrolled return preparer might also constitute the customer before IRS Appeals
based totally on the Form 8821
(B) The unenrolled go back preparer may additionally constitute the client before IRS Appeals
with the oral consent of the consumer
(C) The unenrolled go back preparer may additionally represent the consumer before IRS
Appeals with a be aware connected with the aid of the patron
(D) The unenrolled return preparer may not represent the client before IRS Appeals - ANS-Key:
D
References: Form 2848 Instructions pg. 2
A taxpayer is provided a $three hundred in keeping with month mileage allowance for
commercial enterprise tour from corporation. In order for this to be a non-taxable item, which of
the subsequent should be proper?
(A) The taxpayer ought to go back any excess repayment inside 180 days after the expense
become paid or incurred
(B) The taxpayer must adequately account for the fees within 60 days when they have been
paid or incurred
(C) The taxpayer must receive the development inside 60 days of the time the taxpayer has the
fee
(D) The taxpayer should competently account for the prices within 120 days once they have
been paid or incurred - ANS-Key: B
References: Publication 463 Chapter 6 Page 29
, A taxpayer received a word from the IRS pointing out a prior yr's tax return had been tested and
that an adjustment turned into made growing the quantity of tax by $2,560. The taxpayer
disagrees with the adjustment. The taxpayer should request an audit reconsideration in all of the
following conditions EXCEPT:
(A) The full amount owed has already been paid
(B) There is new documentation for the exam
(C) They neither seemed for the examination nor despatched records to the IRS
(D) They moved and in no way obtained the exam note - ANS-Key: A
References: Publication 3598
An enrolled agent (EA) can constitute a taxpayer:
(A) Before any administrative degree of the IRS
(B) Only if the EA organized the go back below exam
(C) At all tax-related federal court lawsuits
(D) Before collections, examinations, and the Tax Court - ANS-Key: A
References: Publication 947, pages three and 7; Cir. 230, sections 10.2(a)(four), 10.3(c) &
10.32
An enrolled agent (EA) is in the manner of representing a taxpayer earlier than the Internal
Revenue Service for a tax count number. The taxpayer's ex-husband also asked the EA to
symbolize him for the equal count. All of the following are required for the EA to symbolize them
both EXCEPT:
(A) The EA ought to notify the Office of Professional Responsibility that the EA may be
representing both taxpayers
(B) Both taxpayers have to waive the struggle of interest and provide knowledgeable consent in
writing to the EA
(C) The EA should moderately consider that the EA could be able to offer capable and diligent
representation to each taxpayers
(D) The representation isn't always prohibited with the aid of law - ANS-Key: A
References: Cir. 230, Section 10.29
An enrolled agent (EA) organized an man or woman profits tax return for a taxpayer with a
stability due of $25,597. The taxpayer is not capable of pay the whole amount upon filing and
would like to installation an installment settlement. Which of the following statements are correct
in regards to this settlement?
(A) Since the taxpayer owed more than $25,000 the taxpayer might not observe on line
(B) The taxpayer will now not be charged a person charge to set up this installment agreement
(C) The taxpayer need to be in filing compliance
(D) The taxpayer will no longer be charged interest and penalties while making installment
payments - ANS-Key: C
References: Publication 594 Page 3
