AFIP FINAL EXAM PREP QUESTIONS
AND ANSWERS 100% VERIFIED
What are the three elements of a contract - ANSWER-1. Offer
2. Acceptance
3. Consideration
Spanish rules for buyers guide - ANSWER-1)There is a statement at the back of the
buyers guide that explains the customer to ask for a spanish guide if needed
2) if the sales transaction is in spanish, the buyers guide must be as well
3) if you are going after the hispanic market, you must have both english/spanish buyers
guides
if a vehicle on the lot qualifies for a service contract - ANSWER-you must indicated on
the contract that it is eligible for the service contract
There are two websites on the buyers guide - ANSWER-1) how to get the history on the
vehicle
2) How to find out if any open recalls have been issued
Vehicle conditions on the buyers guide - ANSWER-You must have an updated condition
report on the buyers guide
on the back of the buyers guide: complaints after sale contact lists: - ANSWER-1) the
dealership rep name
2) Phone number
3) Job Title
Third party warranty company disclosures: - ANSWER-1) check "no dealer warranty"
Box
2) Check "Other used vehicle warranty" Box
The maximum penalty for violating the used car rule is: - ANSWER-$43,792
IRS 8300 Form: What is Cash? - ANSWER-1) Cashiers Check
2) Bank Draft
3) Travelers Check
4)the amount of $9,500 but this is not required to be submitted to the 8300
Which of the following requires IRS 8300: - ANSWER-- The customer paid $15,000
cash down but the sale did not take place
, Buy Here Pay Here 8300: - ANSWER-The total amount received in cash in a 12 month
period that is over $10,000 needs to be listed on the IRS 8300
How to identify the customer on the IRS 8300 Form? - ANSWER-- SSN
- ITIN
- EIN
Suspicious Transaction IRS 8300 Form requirements: - ANSWER-- You cannot tell the
customer you filled out the 8300 form
- you do not send the customer a letter explaining the form was submitted
Non-resident alien identification - ANSWER-- Passport number
- Drivers License number
What happens when a customer refuses to give SSN number: - ANSWER-write on the
form "customer refused to give SSN" and get their drivers license number
negligent failure to fill out form IRS8300: - ANSWER-Fined $280 per return
Criminal Penalties with regards to a material matter (IRS8300): - ANSWER-- Fines up to
$100,000 (individual) and $500,000 (corporation)
- up to 5 years in jail
- Costs of prosecution
financial privacy safegaurds rule requirements: - ANSWER-- ensure the security and
confidentiality of customer information
- ensure the protection of this information from anticipated threats and hazards
- ensure the protection against unauthorized access
Under the safegaurds rule, the following practices must be taken: - ANSWER-- appoint
a corporate security officer
- Have a written information security procedure
Failure to comply with privacy rule and safegaurds rule: - ANSWER-- Enforcement by
the FTC
- a UDAP claim can be assessed
Disposal Rule: - ANSWER-Disposal of NPI and alignment with privacy rules even when
hiring a destruction company
Red-Flags Rule requirements: - ANSWER-- Make certain that the person giving the
information is legitimately the person
- you must appoint a corporate security officer
- implement a written identity theft prevention program
What is in the Red-Flags Program: - ANSWER-- Identify relevant red-flags
AND ANSWERS 100% VERIFIED
What are the three elements of a contract - ANSWER-1. Offer
2. Acceptance
3. Consideration
Spanish rules for buyers guide - ANSWER-1)There is a statement at the back of the
buyers guide that explains the customer to ask for a spanish guide if needed
2) if the sales transaction is in spanish, the buyers guide must be as well
3) if you are going after the hispanic market, you must have both english/spanish buyers
guides
if a vehicle on the lot qualifies for a service contract - ANSWER-you must indicated on
the contract that it is eligible for the service contract
There are two websites on the buyers guide - ANSWER-1) how to get the history on the
vehicle
2) How to find out if any open recalls have been issued
Vehicle conditions on the buyers guide - ANSWER-You must have an updated condition
report on the buyers guide
on the back of the buyers guide: complaints after sale contact lists: - ANSWER-1) the
dealership rep name
2) Phone number
3) Job Title
Third party warranty company disclosures: - ANSWER-1) check "no dealer warranty"
Box
2) Check "Other used vehicle warranty" Box
The maximum penalty for violating the used car rule is: - ANSWER-$43,792
IRS 8300 Form: What is Cash? - ANSWER-1) Cashiers Check
2) Bank Draft
3) Travelers Check
4)the amount of $9,500 but this is not required to be submitted to the 8300
Which of the following requires IRS 8300: - ANSWER-- The customer paid $15,000
cash down but the sale did not take place
, Buy Here Pay Here 8300: - ANSWER-The total amount received in cash in a 12 month
period that is over $10,000 needs to be listed on the IRS 8300
How to identify the customer on the IRS 8300 Form? - ANSWER-- SSN
- ITIN
- EIN
Suspicious Transaction IRS 8300 Form requirements: - ANSWER-- You cannot tell the
customer you filled out the 8300 form
- you do not send the customer a letter explaining the form was submitted
Non-resident alien identification - ANSWER-- Passport number
- Drivers License number
What happens when a customer refuses to give SSN number: - ANSWER-write on the
form "customer refused to give SSN" and get their drivers license number
negligent failure to fill out form IRS8300: - ANSWER-Fined $280 per return
Criminal Penalties with regards to a material matter (IRS8300): - ANSWER-- Fines up to
$100,000 (individual) and $500,000 (corporation)
- up to 5 years in jail
- Costs of prosecution
financial privacy safegaurds rule requirements: - ANSWER-- ensure the security and
confidentiality of customer information
- ensure the protection of this information from anticipated threats and hazards
- ensure the protection against unauthorized access
Under the safegaurds rule, the following practices must be taken: - ANSWER-- appoint
a corporate security officer
- Have a written information security procedure
Failure to comply with privacy rule and safegaurds rule: - ANSWER-- Enforcement by
the FTC
- a UDAP claim can be assessed
Disposal Rule: - ANSWER-Disposal of NPI and alignment with privacy rules even when
hiring a destruction company
Red-Flags Rule requirements: - ANSWER-- Make certain that the person giving the
information is legitimately the person
- you must appoint a corporate security officer
- implement a written identity theft prevention program
What is in the Red-Flags Program: - ANSWER-- Identify relevant red-flags
