EA Part 3 Exam with correct Answers
Form 8867 - Answer-Paid Preparer's Due Diligence Checklist. Includes new questions
for both the Head of Household filing status and the new Credit for Other Dependents.
Retroactive! (for HoH anyways)
/.Penalty for failure to meet due diligence requirements - Answer-$520 per failure
/.New Requirements for Child Tax Credit/Additional Child Tax Credit - Answer-Child
must have SSN (ITIN or ATIN works for ODC)
/.Time to file claim for wrongful levy or seizure - Answer-two years
/.Passport Revocation - Answer-The IRS has to notify the US dept. of state of taxpayers
who owe a seriously delinquent tax debt. They can then revoke or deny passport. The
threshold for 2018 is $52,000
/.Centralized Audit Regime - Answer-Mandatory for partnerships above 100 partners.
(100 or fewer can elect out of this new regime). If anything is adjusted, it is assessed
and collected at the partnership level (instead of going after individual partners)
/.Title 26 - Answer-Internal Revenue Code - main body of tax law of the United States
/.Title 31 - Answer-FinCEN and FBAR - International financial reporting laws
/.Primary Authority - Answer-the law itself, Internal Revenue Code
/.Substantial Authority - Answer-Can serve as basis for interpretation of current tax law
and to establish precedents for the future.
1. Treasury Regulations
2. Revenue Rulings
3. Revenue Procedures
4. Private Letter Rulings
5. Technical Advice Memoranda (TAMS)
6. IRS Notices
/.Treasury Regulations - Answer-The official interpretation of a statutory tax rule written
and published by the U.S. Treasury. Published in the Federal Register.
/.Types of Treasury Regulations - Answer-1. Legislative Regulations
2. Interpretive Regulations
3. Procedural Regulations
, /.Who is bound by IRS regulations? - Answer-The IRS (the courts are not)
/.Classification of Treasury Regulations - Answer-Proposed
Temporary
Final
/.Revenue Rulings and Revenue Procedures - Answer-Can be used by taxpayers as
guidance to avoid certain accuracy related penalties
/.Technical Advice Memoranda (TAMs) - Answer-TAMs are issued by the IRS in
response to questions raised by IRS field personnel during audits. They deal with
completed rather than proposed transactions and are often requested for questions
related to exempt organizations and employee plans.
/.Private Letter Ruling (PLR) - Answer-The IRS's written response to a taxpayer's
inquiry as to how the tax law applies to a proposed transaction. $$$$
/.Internal Revenue Manual (IRM) - Answer-Policies, procedures and guidelines
governing the operations and organization of the IRS. Used by IRS employees
/.IRS publications and forms.... - Answer-are not considered substantial authority!
/.IRS Divisions - Answer-1. Large Business & International Division
2. Small Business and Self-Employed Division
3. Wage and Investment Division
4. Tax Exempt and Government Entities Division
/.Taxpayer Advocate Service - Answer-Independent organization within IRS who can
help resolve problems. Can call or use Form 911. Taxpayer has to be in immediate
threat, experiencing economic harm, has had long delay, etc. BIG DEAL
/.Practice before the IRS includes: - Answer-1. Corresponding and communicating with
the IRS
2. Representing a taxpayer at conference, hearing, meetings
3. Preparing and filing DOCUMENTS with IRS
4. Providing written advice that has potential for tax avoidance or evasion
NOT FILE TAX RETURNS
/.Enrolled Practioners who represent and practice by virtue of their licensing - Answer-
Attorneys, CPAs, EAs (unlimited rights).
Enrolled retirement plan agents, enrolled actuaries
/.IRS office of Professional Responsibility (OPR) - Answer-For matters related to
practitioner conduct, discipline, disciplinary proceedings, and sanctions
Form 8867 - Answer-Paid Preparer's Due Diligence Checklist. Includes new questions
for both the Head of Household filing status and the new Credit for Other Dependents.
Retroactive! (for HoH anyways)
/.Penalty for failure to meet due diligence requirements - Answer-$520 per failure
/.New Requirements for Child Tax Credit/Additional Child Tax Credit - Answer-Child
must have SSN (ITIN or ATIN works for ODC)
/.Time to file claim for wrongful levy or seizure - Answer-two years
/.Passport Revocation - Answer-The IRS has to notify the US dept. of state of taxpayers
who owe a seriously delinquent tax debt. They can then revoke or deny passport. The
threshold for 2018 is $52,000
/.Centralized Audit Regime - Answer-Mandatory for partnerships above 100 partners.
(100 or fewer can elect out of this new regime). If anything is adjusted, it is assessed
and collected at the partnership level (instead of going after individual partners)
/.Title 26 - Answer-Internal Revenue Code - main body of tax law of the United States
/.Title 31 - Answer-FinCEN and FBAR - International financial reporting laws
/.Primary Authority - Answer-the law itself, Internal Revenue Code
/.Substantial Authority - Answer-Can serve as basis for interpretation of current tax law
and to establish precedents for the future.
1. Treasury Regulations
2. Revenue Rulings
3. Revenue Procedures
4. Private Letter Rulings
5. Technical Advice Memoranda (TAMS)
6. IRS Notices
/.Treasury Regulations - Answer-The official interpretation of a statutory tax rule written
and published by the U.S. Treasury. Published in the Federal Register.
/.Types of Treasury Regulations - Answer-1. Legislative Regulations
2. Interpretive Regulations
3. Procedural Regulations
, /.Who is bound by IRS regulations? - Answer-The IRS (the courts are not)
/.Classification of Treasury Regulations - Answer-Proposed
Temporary
Final
/.Revenue Rulings and Revenue Procedures - Answer-Can be used by taxpayers as
guidance to avoid certain accuracy related penalties
/.Technical Advice Memoranda (TAMs) - Answer-TAMs are issued by the IRS in
response to questions raised by IRS field personnel during audits. They deal with
completed rather than proposed transactions and are often requested for questions
related to exempt organizations and employee plans.
/.Private Letter Ruling (PLR) - Answer-The IRS's written response to a taxpayer's
inquiry as to how the tax law applies to a proposed transaction. $$$$
/.Internal Revenue Manual (IRM) - Answer-Policies, procedures and guidelines
governing the operations and organization of the IRS. Used by IRS employees
/.IRS publications and forms.... - Answer-are not considered substantial authority!
/.IRS Divisions - Answer-1. Large Business & International Division
2. Small Business and Self-Employed Division
3. Wage and Investment Division
4. Tax Exempt and Government Entities Division
/.Taxpayer Advocate Service - Answer-Independent organization within IRS who can
help resolve problems. Can call or use Form 911. Taxpayer has to be in immediate
threat, experiencing economic harm, has had long delay, etc. BIG DEAL
/.Practice before the IRS includes: - Answer-1. Corresponding and communicating with
the IRS
2. Representing a taxpayer at conference, hearing, meetings
3. Preparing and filing DOCUMENTS with IRS
4. Providing written advice that has potential for tax avoidance or evasion
NOT FILE TAX RETURNS
/.Enrolled Practioners who represent and practice by virtue of their licensing - Answer-
Attorneys, CPAs, EAs (unlimited rights).
Enrolled retirement plan agents, enrolled actuaries
/.IRS office of Professional Responsibility (OPR) - Answer-For matters related to
practitioner conduct, discipline, disciplinary proceedings, and sanctions
