gleim

Question 1

Identify the individual below who is NOT eligible to practice before the IRS. None of the individuals are under suspension or disbarment.

Answer 1

cfp

Question 2

Which of the following is NOT practicing before the Internal Revenue Service?
What Is Practice Before the IRS?

Circular 230 covers all matters relating to any of the following.

Communicating with the IRS on behalf of a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS.

Representing a taxpayer at conferences, hearings, or meetings with the IRS.

Preparing, filing or submitting documents, or advising on the preparation, filing or submission of documents, including tax returns, with the IRS on behalf of a taxpayer.

Providing a client with written tax advice on one or more Federal tax matters.

Answer 2

Any individual may for compensation prepare or assist with the preparation of a tax return or claim for refund, appear as a witness for a taxpayer before the IRS, or furnish information at the request of the IRS or any of its officers or employees.

Question 3

Which of the following acts performed by an attorney, a CPA, or an enrolled agent is NOT prohibited by Sec. 10.24 (Assistance from or to disbarred or suspended persons and former IRS employees) of Circular 230?

Answer 3

cant accept assistance

can prepare their return

Question 4

Sam is an enrolled agent and a partner in the firm of Taxes-R-Us, LLP. One of Sam’s former partners is under investigation by the IRS for disreputable conduct. Sam has been asked by the IRS to provide information regarding his former partner. Sam must provide all the information requested unless

Answer 4

request is improper / unlawful…or info is priviledged

Question 5

Under Treasury Circular 230, in which of the following situations is a CPA prohibited from giving written advice concerning one or more federal tax issues?

Answer 5

cant speculate on audit probability

Question 6

All of the following are considered examples of disreputable conduct for which an enrolled agent can be disbarred or suspended EXCEPT

Answer 6

timely pay personal taxes

Question 7

Which of the following statements regarding the renewal of an enrolled agent license is correct?

Answer 7

every 3rd year

Question 8

Which of the following statements concerning identity theft and the IRS is true?

Answer 8

Form 14039
(May 2024)
Department of the Treasury - Internal Revenue Service
Identity Theft Affidavit

Question 9

Which of the following statements in an IRS letter may alert a taxpayer to possible identity theft?

More than one tax return for the taxpayer was filed.
The taxpayer has a balance due, refund offset, or has had collection actions taken against the taxpayer for a year the taxpayer did not file a tax return.
IRS records indicate the taxpayer received wages from an employer unknown to the taxpayer.

Answer 9

all

Question 10

With regard to the reporting requirements for tax return preparers, which of the following statements is false?

Answer 10

anyone who enploys 1 person to prep

Question 11

With regard to the requirements for preparers signing returns under Sec. 6695, which of the following statements is false?
penalty
primary must sign
gummed label = not ok
substitute can review info + sign

Answer 11

substitute must review entire prep

Question 12

Matt, an enrolled agent, provided tax advice to XYZ corporation on a federal tax matter. The Securities and Exchange Commission (SEC) is reviewing a required filing of the XYZ corporation and asks to see a copy of Matt’s tax advice. The tax advice is NOT protected by the federally authorized tax practitioner privilege under IRC Sec. 7525 from disclosure to the SEC because

Answer 12

sec does not = irs

Question 13

A penalty may be assessed on any preparer or

Answer 13

preps + signs AND ALSO the supervisor of advice given

Question 14

For a single calendar year, what is the maximum penalty that can be imposed on a tax preparer for failing to sign the tax return he or she prepares?

Answer 14

For returns filed in calendar year 2023, the penalty is $55 for each failure and the maximum penalty cannot be greater than $28,000.

Question 15

With regard to the declaration of the representative on a power of attorney, all of the following statements are true EXCEPT

Answer 15

fiduciary cant do a 2848

Question 16

All of the following tax matters may be reflected on a power of attorney EXCEPT

Answer 16

3 years only

Question 17

A power of attorney or tax information authorization should contain all of the following information EXCEPT

Answer 17

irs divisions

Question 18

Which of the following statements with respect to the Internal Revenue Service’s Centralized Authorization File (CAF) is false?

Answer 18

caf is to help expedite poa’s or 8821s filed by recognized persons. but dont have to have 1

Question 19

D’s tax return for 2021 was examined by the IRS for contributions and medical expenses. The examination resulted in “no change” to his tax liability. He received notification of an examination for the same items for his 2023 tax return. What action should he take?

Answer 19

Repeat examinations.

The IRS tries to avoid repeat examinations of the same items, but sometimes this happens. If your tax return was examined for the same items in either of the 2 previous years and no change was proposed to your tax liability, please contact the IRS as soon as possible to see if the examination should be discontinued.

Question 20

Joe, a calendar-year taxpayer, filed his federal income tax return, with a refund due, for tax year 2023 on April 1, 2024. The last day to timely file a claim for refund with respect to that return is

Answer 20

The latest date, by law, you can claim a credit or federal income tax refund for a specific tax year is generally the later of these 2 dates:

3 years from the date you filed your federal income tax return, or
2 years from the date you paid the tax.

This time period is called the Refund Statute Expiration Date (RSED).

If you filed your return before its due date, the IRS considers it filed on the due date. If you had income tax withheld or paid estimated tax during the year, we consider those payments to have been made on the return due date.

Question 21

Gina disagreed with the results of an IRS examination of her tax return. She pursued the appeals procedures and disagreed with the appeals officer. If she wishes to appeal further, Gina may

Answer 21

WAIT FOR notice of deficiency, dont pay, petition Tax Court

Question 22

Ron’s tax returns were examined for 2018, 2019, and 2020, all of which resulted in adjustments increasing income reported on Schedule C of the returns. The Revenue Agent determined that the failure to report the income was intentional. The Revenue Agent proposed a fraud penalty. The adjustment for each year was in the amount of $100,000. The fraud penalty for each year should be in which of the following amounts?

Answer 22

Fraud.

If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax.

Question 23

The collection process begins

Answer 23

where notices are generated [irs service center]

Question 24

Which of the following is true with respect to an offer in compromise?

Answer 24

If your offer is rejected

You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711 PDF.
The IRS Independent Office of Appeals offers additional assistance on appealing your rejected offer.

Question 25

Which of the following statements with respect to IRS seizure and sale of a taxpayer’s property to satisfy the taxpayer’s tax bill is TRUE?

Answer 25

After giving public notice, the IRS will generally wait at least 10 days before selling your property.
RESEARCH MORE ABOUT LEVY.

Question 26

All of the following persons may be responsible for the trust fund tax EXCEPT

Answer 26

EMPLOYEE of payroll dept IS UNLIKELY To have control over funds

Question 27

The trust fund recovery penalty was enacted to encourage prompt payment of which taxes?

Answer 27

To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.
These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.

Question 28

Which of the following are useful tools in determining Congressional intent behind certain tax laws and helping examiners apply the law properly?

Answer 28

congressional committee reports

Question 29

Which of the following is NOT one of the three classes of Treasury Regulations?
proposed,
temporary, and
final regulations.
judicial

Answer 29

judicial

Question 30

IRS notices and announcements are identified by a number representing the

Answer 30

year + sequence #

Question 31

Which of the following explain the law in plain language for taxpayers and their advisors?

Answer 31

pubs [which are nonbinding]

Question 32

Which of the following represents the conclusion of the IRS for an individual taxpayer?

Answer 32

plr

Question 33

Which of the following is a correct path for a tax case to reach the U.S. Supreme Court?

Question 34

Which of the following statements regarding the Commissioner of Internal Revenue’s position on court decisions is TRUE?

Answer 34

commiss can WD an acquiesc, can substitute a nonacqueiesce

Question 35

Which of the following is a secondary tax source?

Answer 35

RESEARCH TOOLS THAT HELP LOCATE PRIARY AUTHORITY, SO, TEXTBOOKS CITATORS, JOURNALS, NEWSLTERRES, TAX SERVICES

Question 36

With regard to expenses, the taxpayer should keep all of the following records EXCEPT

Answer 36

Hard copies can be scanned - so don’t need originals

Question 37

Nancy, a calendar-year taxpayer, filed her federal income tax return for tax year 2021, which was due on April 15, 2022, on May 1, 2022. Nancy did not request and therefore did not receive an extension of time to file her 2021 federal income tax return. Nancy paid the amount due as shown on the 2021 return on June 30, 2022. Based on these facts, the last day for the IRS to assess additional tax with respect to Nancy’s 2021 return is

Answer 37

The Assessment Statute Expiration Date (ASED) is the end of the time period in which the IRS can assess tax with respect to a particular tax year. The general rule is that an assessment of tax must be made within three years from the received date of an original tax return or three years from the due date of the original return, whichever is later.

Question 38

A calendar-year taxpayer filed an individual tax return for Year 6 on March 20, Year 7. The taxpayer neither committed fraud nor omitted amounts in excess of 25% of gross income on the tax return.
What is the latest date that the taxpayer must keep records available?

Answer 38

april 15, year 10

Period of limitations that apply to income tax returns

Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
Keep records indefinitely if you do not file a return.
Keep records indefinitely if you file a fraudulent return.
Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

The following questions should be applied to each record as you decide whether to keep a document or throw it away.
Are the records connected to property?
What should I do with my records for nontax purposes?

Question 39

Samantha Sharp, an enrolled agent, prepares and electronically files Form 1040 tax returns.
Samantha prepared the 2023 tax return for Tom, her client.
Tom uses Form 8453 and attaches a Form 8332.
On March 2, 2024, Samantha electronically filed Tom’s tax return, which was a refund return.
On March 3, Samantha received acknowledgment from the Internal Revenue Service that Tom’s return had been accepted. On March 10, Tom received his refund.
By what date must Samantha mail the executed Form 8453 to the IRS?

Answer 39

3 business days after irs acknowledged

Question 40

What is an EFIN?

Answer 40

e-file #