Enrolled Agent SEE Part 3 || QUESTIONS WITH 100%
CORRECT ANSWERS!!
Form 433-A correct answers Collection Information Statement for Wage Earners and Self-
Employed Individuals
Form 8863 correct answers Education Credits (American Opportunity and Lifetime Learning
Credit)
Form 4868 correct answers Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
Form 8879 correct answers IRS e-file Signature Authorization
Fiduciary correct answers relating to the governing of property or estate on behalf of others
Taxpayer Advocate Service correct answers a service known as the taxpayer's voice to the
IRS. assists taxpayers by making sure they are treated fairly and understand their rights
Accuracy-Related Penalty correct answers A penalty of 20% of the underpayment amount
imposed on taxpayers who file incorrect tax returns in certain situations, including :
negligence, substantial valuation misstatements, substantial overstatement of pension
liabilities, claim of tax benefit from transaction lacking economic substance
economic substance doctrine correct answers doctrine that requires transactions to
meaningfully change a taxpayer's economic position and to have a substantial purpose (apart
from a federal income tax purpose) in order for a taxpayer to obtain tax benefits.
Form 2848 correct answers Power of Attorney and Declaration of Representative
Form 4598 correct answers a form issued by the IRS to indicate the taxpayer has not received
w2, 1099, or 1098
form 8082 correct answers Notice of Inconsistent Treatment or Administrative Adjustment
Record; used to report situations where an S Corporation shareholder return will be
inconsistent with the corporate return or a partners return will be inconsistent with the
partnership return
form 8867 correct answers Paid Preparer's EIC Checklist
injunction correct answers An order which legally prevents an individual from participating
in certain acts
Substantial Authority correct answers There is substantial authority for the tax treatment of
an item if the treatment is supported by controlling precedent of a US Court of Appeals to
which the taxpayer has a right of appeal with respect to the item.
, Substantial understatement correct answers General rule: 20% of underpayment attributable
to substantial understatement (portion for which no substantial authority and no disclosure
exists)
tax shelter correct answers Any method of reducing taxable income resulting in a reduction of
the payments to tax collecting entities, including state and federal governments.
Accrual Basis Accounting correct answers reporting income when it is earned and expenses
when they are incurred
Cash Method of Accounting correct answers An overall method of accounting under which
revenue is accounted for when payment is received and expenses are accounted for when
payment is made.
centralized authorization file correct answers computer file containing information regarding
authority of individuals appointed under powers of attorney or designated under the tax
information authorization system
FORM 8821
TAX INFORMATION AUTHORIZATION correct answers a form that must be filed for a
representative to inspect confidential information on behalf of the taxpayer, unless the
representative has filed a POA
Constructive Receipt correct answers The point at which a taxpayer has unrestricted access to
and control of income, even if the income item is not in the taxpayer's actual possession.
durable power of attorney correct answers Power of attorney intended to continue to be
effective/take effect after principal incapacitated
Form 3115 correct answers Application for Change in Accounting Method
general power of attorney correct answers an instrument in writing authorizing one person to
do anything for the principal. In other words, one party has full power of attorney for another
party.
Hybrid Accounting Method correct answers a combination of the permissible accounting
methods
Last-In, First-Out (LIFO) correct answers Method for assigning cost to inventory that
assumes costs for the most recent items purchased are sold first and charged to cost of goods
sold.
Special Appearance correct answers Appearance by a defendant or respondent for the sole
purpose of contesting the court's exercise of personal jurisdiction over that party
30 day letter correct answers the IRS letter received after an audit that instructs the taxpayer
that he or she has 30 days to either (1) request a conference with an appeals officer or (2)
agree to the proposed adjustment.
CORRECT ANSWERS!!
Form 433-A correct answers Collection Information Statement for Wage Earners and Self-
Employed Individuals
Form 8863 correct answers Education Credits (American Opportunity and Lifetime Learning
Credit)
Form 4868 correct answers Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
Form 8879 correct answers IRS e-file Signature Authorization
Fiduciary correct answers relating to the governing of property or estate on behalf of others
Taxpayer Advocate Service correct answers a service known as the taxpayer's voice to the
IRS. assists taxpayers by making sure they are treated fairly and understand their rights
Accuracy-Related Penalty correct answers A penalty of 20% of the underpayment amount
imposed on taxpayers who file incorrect tax returns in certain situations, including :
negligence, substantial valuation misstatements, substantial overstatement of pension
liabilities, claim of tax benefit from transaction lacking economic substance
economic substance doctrine correct answers doctrine that requires transactions to
meaningfully change a taxpayer's economic position and to have a substantial purpose (apart
from a federal income tax purpose) in order for a taxpayer to obtain tax benefits.
Form 2848 correct answers Power of Attorney and Declaration of Representative
Form 4598 correct answers a form issued by the IRS to indicate the taxpayer has not received
w2, 1099, or 1098
form 8082 correct answers Notice of Inconsistent Treatment or Administrative Adjustment
Record; used to report situations where an S Corporation shareholder return will be
inconsistent with the corporate return or a partners return will be inconsistent with the
partnership return
form 8867 correct answers Paid Preparer's EIC Checklist
injunction correct answers An order which legally prevents an individual from participating
in certain acts
Substantial Authority correct answers There is substantial authority for the tax treatment of
an item if the treatment is supported by controlling precedent of a US Court of Appeals to
which the taxpayer has a right of appeal with respect to the item.
, Substantial understatement correct answers General rule: 20% of underpayment attributable
to substantial understatement (portion for which no substantial authority and no disclosure
exists)
tax shelter correct answers Any method of reducing taxable income resulting in a reduction of
the payments to tax collecting entities, including state and federal governments.
Accrual Basis Accounting correct answers reporting income when it is earned and expenses
when they are incurred
Cash Method of Accounting correct answers An overall method of accounting under which
revenue is accounted for when payment is received and expenses are accounted for when
payment is made.
centralized authorization file correct answers computer file containing information regarding
authority of individuals appointed under powers of attorney or designated under the tax
information authorization system
FORM 8821
TAX INFORMATION AUTHORIZATION correct answers a form that must be filed for a
representative to inspect confidential information on behalf of the taxpayer, unless the
representative has filed a POA
Constructive Receipt correct answers The point at which a taxpayer has unrestricted access to
and control of income, even if the income item is not in the taxpayer's actual possession.
durable power of attorney correct answers Power of attorney intended to continue to be
effective/take effect after principal incapacitated
Form 3115 correct answers Application for Change in Accounting Method
general power of attorney correct answers an instrument in writing authorizing one person to
do anything for the principal. In other words, one party has full power of attorney for another
party.
Hybrid Accounting Method correct answers a combination of the permissible accounting
methods
Last-In, First-Out (LIFO) correct answers Method for assigning cost to inventory that
assumes costs for the most recent items purchased are sold first and charged to cost of goods
sold.
Special Appearance correct answers Appearance by a defendant or respondent for the sole
purpose of contesting the court's exercise of personal jurisdiction over that party
30 day letter correct answers the IRS letter received after an audit that instructs the taxpayer
that he or she has 30 days to either (1) request a conference with an appeals officer or (2)
agree to the proposed adjustment.
