EA EXAM part 3 FF Q's Flashcards
Form 4506
Form 4506, Request for Copy of Tax Return
Form 8821
Form 8821, Tax Information Authorization
What is the penalty for understatement of tax due to negligence or disregard of the rules or regulations?
20% of the underpayment.
The IRS filed a Notice of Federal Tax Lien and thereby encumbered Tom Robinson’s residence. Can he appeal the lien?
Yes, by requesting a hearing with the Office of Appeals. He may request a Collections Due Process (CDP) hearing with the IRS Office of Appeals by sending a request for a hearing to the address shown on the notice.
John Green disagrees with the IRS examiner and her supervisor regarding his income tax case. He decided to appeal. When can he file his petition in Tax Court?
Within ninety days of the date the IRS mails a Notice of Deficiency to him.
Can the IRS contact third parties in the course of examining a tax payer’s filed return?
Yes, but only upon general notice to the taxpayer that the IRS might do so.
Does Form 2848 have a provision that allows a taxpayer to authorize his attorney, CPA, or enrolled agent to receive and endorse refund checks on his behalf?
NO NO NO
How long does a taxpayer have to petition the Tax Court after the IRS sends a Notice of Deficiency?
Ninety days from the day the IRS sends the Notice.
What is a 90-day letter?
A Statutory Notice of Deficiency.
A Collection Due Process (CDP) hearing is not available if a taxpayer receives which notice?
A taxpayer who receives a Notice of Termination of an Installment Agreement must utilize the Collections Appeal Process (CAP).
Joseph received a bill from the Internal Revenue Service for additional tax due of $1,000 plus accrued interest of $150. If Joseph pays the $1,000 tax in full, will he be liable for additional interest?
Yes. The IRS will continue to charge interest until the amount owed is paid in full. After Joseph pays the $1,000, he will receive a bill for interest accrued between the day the bill was prepared and the day he made his payment.
When can a taxpayer can request that his case be handled under the small tax case procedure in Tax Court?
If the amount in a case is $50,000 or less for any one tax year or period.
Decisions entered in Tax Court for cases brought pursuant to the small tax case procedure are not appealable.
When a taxpayer disagrees with the result of an Appeals conference, can he appeal the result?
Yes, he can appeal to Federal District Court or to Federal Claims Court or to Tax Court.
Must an aggrieved taxpayer make use of the IRS appeals process?
No, a taxpayer can bypass the IRS appeals process but if he files in Tax Court, the Tax Court will refer the case to the IRS appeals system.
Is Circular 230 part of the Code of Federal Regulations?
Yes, it is in Title 31.
The regulations in Circular 230 governing the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries and appraisers before the IRS are found in the Code of Federal Regulations at 31 CFR 10.
