ENROLLED AGENT UPDATED EXAM SCRIPT QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔When is the IRS able to file a tax lien? - ✔✔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? - ✔✔10
years
✔✔What information can an authorized e-file provider update with the IRS by letter
instead of online? - ✔✔- 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? - ✔✔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? - ✔✔- 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? - ✔✔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? - ✔✔- 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? - ✔✔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? -
✔✔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?" - ✔✔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.
✔✔What records are required to be retained by return preparers? - ✔✔For each return
prepared, the preparer must retain either a completed copy or a list of the taxpayer's
name, TIN, tax year, and type of return as well as the name of the individual signing tax
preparer.
✔✔Who is eligible to be authorized e-file provider? - ✔✔- Electronic Return Originator
(ERO)
- Intermediate Service Provider
- Software Developer
- Transmitter
✔✔When can a rejected electronic return be corrected and re-filed without having a new
8879 signed by the taxpayer? - ✔✔If the change in total income or AGI is less than $50
or if the change in amount owed/refund or total tax is less than $14.
✔✔What are the payment plan options for an Offer in Compromise? - ✔✔- The Lump
Sum Cash Offer is an upfront nonrefundable payment of 20% then the rest paid in 5
payments within 5 months.
- The Periodic Payment Plan involves paying the amount in equal monthly payments
through 6 - 24 months. The first payment must be paid with the request and payments
must be made monthly while the offer is being evaluated by the IRS agent.
AND ANSWERS GUARANTEE A+
✔✔When is the IRS able to file a tax lien? - ✔✔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? - ✔✔10
years
✔✔What information can an authorized e-file provider update with the IRS by letter
instead of online? - ✔✔- 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? - ✔✔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? - ✔✔- 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? - ✔✔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? - ✔✔- 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? - ✔✔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? -
✔✔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?" - ✔✔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.
✔✔What records are required to be retained by return preparers? - ✔✔For each return
prepared, the preparer must retain either a completed copy or a list of the taxpayer's
name, TIN, tax year, and type of return as well as the name of the individual signing tax
preparer.
✔✔Who is eligible to be authorized e-file provider? - ✔✔- Electronic Return Originator
(ERO)
- Intermediate Service Provider
- Software Developer
- Transmitter
✔✔When can a rejected electronic return be corrected and re-filed without having a new
8879 signed by the taxpayer? - ✔✔If the change in total income or AGI is less than $50
or if the change in amount owed/refund or total tax is less than $14.
✔✔What are the payment plan options for an Offer in Compromise? - ✔✔- The Lump
Sum Cash Offer is an upfront nonrefundable payment of 20% then the rest paid in 5
payments within 5 months.
- The Periodic Payment Plan involves paying the amount in equal monthly payments
through 6 - 24 months. The first payment must be paid with the request and payments
must be made monthly while the offer is being evaluated by the IRS agent.
