Question 1

The IRS is now organized to:

Accepted Answer

A)  facilitate the processing of tax returns. 
B)  Remedy requests. 
C)  carrying out its broader goals. 
D)  (a.) and (c.) only. 
A)  facilitate the processing of tax returns. 
B)  Remedy requests. 
C)  carrying out its broader goals. 
D)  (a.) and (c.) only. D

Question 2

The National Taxpayer Advocate:

Accepted Answer

A)  Represents the IRS in Tax Court cases. 
B)  Administers a taxpayer-intervention system. 
C)  Assists the IRS in preparing proposed legislation, treaties, regulations, and executive orders. 
D)  Prepares IRS rulings and other written determinations. 
A)  Represents the IRS in Tax Court cases. 
B)  Administers a taxpayer-intervention system. 
C)  Assists the IRS in preparing proposed legislation, treaties, regulations, and executive orders. 
D)  Prepares IRS rulings and other written determinations. B

Question 3

Some of the factors believed to be perused in an economic-reality audit include the following:

Accepted Answer

A)  Significant increases in interest, dividend, and other investment income. 
B)  Significant decreases in mortgage and other reportable interest paid. 
C)  Significant variance in self-employment or farming income during the period relative to industry norms. 
D)  All of the above. 
A)  Significant increases in interest, dividend, and other investment income. 
B)  Significant decreases in mortgage and other reportable interest paid. 
C)  Significant variance in self-employment or farming income during the period relative to industry norms. 
D)  All of the above. D

Question 4

A taxpayer's return is classified for audit after receiving a high DIF score and being manually screened by an IRS classifier. Which of the following statements best describes whether the taxpayer will be contacted by an auditor or revenue agent:

Accepted Answer

A)  Yes, the taxpayer will be contacted since a high DIF score always will mean some type of audit. 
B)  Yes, the taxpayer will be contacted because only the National Office has the power to decide that after screening the return need not be audited. 
C)  No, the taxpayer will not necessarily be contacted since after the Service Center review, it may be decided that an audit is unwarranted. 
D)  No, the taxpayer will not necessarily be contacted by an auditor or revenue a agent since after the return is screened by the Service Center, it then is randomly selected for audit. 
A)  Yes, the taxpayer will be contacted since a high DIF score always will mean some type of audit. 
B)  Yes, the taxpayer will be contacted because only the National Office has the power to decide that after screening the return need not be audited. 
C)  No, the taxpayer will not necessarily be contacted since after the Service Center review, it may be decided that an audit is unwarranted. 
D)  No, the taxpayer will not necessarily be contacted by an auditor or revenue a agent since after the return is screened by the Service Center, it then is randomly selected for audit.

Question 5

A taxpayer may be represented before the IRS only by attorneys.

Accepted Answer

A) True 
 B)False

Question 6

In case of underpayment of taxes, if the deficiency is not paid in a timely fashion, interest is imposed on the unpaid amount for a period that begins on the date of:

Accepted Answer

A)  Filing return and ends on the date of payment or the last working day of the respective year, whichever is later. 
B)  Filing return and ends on the date of payment. 
C)  The notice and demand and ends on the date of payment. 
D)  The notice and demand and ends on the date when the taxpayer receives the notice. 
A)  Filing return and ends on the date of payment or the last working day of the respective year, whichever is later. 
B)  Filing return and ends on the date of payment. 
C)  The notice and demand and ends on the date of payment. 
D)  The notice and demand and ends on the date when the taxpayer receives the notice.

Question 7

These and other items were included as guaranteed to taxpayers in the various incarnations of the Taxpayers Bill of Rights:

Accepted Answer

Representation before the IRS

Question 8

Individual Taxpayers have around a 20% chance of being audited.

Accepted Answer

A) True 
 B)False

Question 9

The Tax Court will review a taxpayer's case, provided that he or she files a petition with the court within:

Accepted Answer

A)  10 days of the date of his or her statutory notice of deficiency 
B)  60 days of the date of his or her statutory notice of deficiency 
C)  30 days of the date of his or her statutory notice of deficiency 
D)  90 days of the date of his or her statutory notice of deficiency 
A)  10 days of the date of his or her statutory notice of deficiency 
B)  60 days of the date of his or her statutory notice of deficiency 
C)  30 days of the date of his or her statutory notice of deficiency 
D)  90 days of the date of his or her statutory notice of deficiency

Question 10

The IRS has increased the number of tax return processing centers with the increase in electronic filing of returns.

Accepted Answer

A) True 
 B)False

Question 11

Form 911 is a Request for Taxpayer Advocate Assistance.

Accepted Answer

A) True 
 B)False

Question 12

A Power of Attorney is necessary when a qualified representative goes to the IRS to represent a Taxpayer.

Accepted Answer

A) True 
 B)False

Question 13

The IRS was established by Congress on July 1, 1682, to meet the fiscal needs of the Civil War.

Accepted Answer

A) True 
 B)False

Question 14

A written revenue agent's report (RAR) is prepared by the IRS agent and is given to the taxpayer:

Accepted Answer

A)  before the commencement of the examination 
B)  at the beginning of the examination 
C)  during the examination 
D)  upon the conclusion of the examination 
A)  before the commencement of the examination 
B)  at the beginning of the examination 
C)  during the examination 
D)  upon the conclusion of the examination

Question 15

Why would a Taxpayer choose to go to District Court or the Court of Federal Claims and not to U.S. Tax Court?

Accepted Answer

Since the District Court and the Court o

Question 16

The Chief Counsel is appointed by the President and reports to the Commissioner of the IRS.

Accepted Answer

A) True 
 B)False

Question 17

Signed into law in 1996, guarantees taxpayers various rights to representation before the IRS. What is it called?

Accepted Answer

A)  The Constitution. 
B)  The 16th Amendment. 
C)  The Taxpayer Bill of Rights 
D)  The Taxpayer Advocate. 
A)  The Constitution. 
B)  The 16th Amendment. 
C)  The Taxpayer Bill of Rights 
D)  The Taxpayer Advocate.

Question 18

'Economic reality' factors are considered by the IRS in selection of returns for audit only where it has some other
evidence that the taxpayer has over reported taxable income for the year.

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer's appeal must be in written form if the total proposed additional tax and penalties exceed $2,500.

Accepted Answer

A) True 
 B)False

Question 20

The IRS treats an adjustment in tax resulting from an unallowable item identified in return as a correction of a mathematical or clerical error.

Accepted Answer

A) True 
 B)False

The IRS is now organized to:

The National Taxpayer Advocate:

Some of the factors believed to be perused in an economic-reality audit include the following:

A taxpayer's return is classified for audit after receiving a high DIF score and being manually screened by an IRS classifier. Which of the following statements best describes whether the taxpayer will be contacted by an auditor or revenue agent:

A taxpayer may be represented before the IRS only by attorneys.

In case of underpayment of taxes, if the deficiency is not paid in a timely fashion, interest is imposed on the unpaid amount for a period that begins on the date of:

These and other items were included as guaranteed to taxpayers in the various incarnations of the Taxpayers Bill of Rights:

Individual Taxpayers have around a 20% chance of being audited.

The Tax Court will review a taxpayer's case, provided that he or she files a petition with the court within:

The IRS has increased the number of tax return processing centers with the increase in electronic filing of returns.

Form 911 is a Request for Taxpayer Advocate Assistance.

A Power of Attorney is necessary when a qualified representative goes to the IRS to represent a Taxpayer.

The IRS was established by Congress on July 1, 1682, to meet the fiscal needs of the Civil War.

A written revenue agent's report (RAR) is prepared by the IRS agent and is given to the taxpayer:

Why would a Taxpayer choose to go to District Court or the Court of Federal Claims and not to U.S. Tax Court?

The Chief Counsel is appointed by the President and reports to the Commissioner of the IRS.

Signed into law in 1996, guarantees taxpayers various rights to representation before the IRS. What is it called?

'Economic reality' factors are considered by the IRS in selection of returns for audit only where it has some other evidence that the taxpayer has over reported taxable income for the year.

A taxpayer's appeal must be in written form if the total proposed additional tax and penalties exceed $2,500.

The IRS treats an adjustment in tax resulting from an unallowable item identified in return as a correction of a mathematical or clerical error.

Introduction to Tax Practice and Ethics

Tax Research Methodology

Constitutional and Legislative Sources

Administrative Regulations and Rulings

Judicial Interpretations

Tax Services Ria Checkpoint

Tax Services Cch Intelliconnect

Tax Services Specialty and Others

Multijurisdictional and Other Research

Financial Accounting Research

Communicating Research Results

Tax Planning

Tax Practice and Administration: Sanctions, Agreements, and Disclosures

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Exam 13: Working With the Irs

The IRS is now organized to:

The National Taxpayer Advocate:

Some of the factors believed to be perused in an economic-reality audit include the following:

A taxpayer's return is classified for audit after receiving a high DIF score and being manually screened by an IRS classifier. Which of the following statements best describes whether the taxpayer will be contacted by an auditor or revenue agent:

A taxpayer may be represented before the IRS only by attorneys.

In case of underpayment of taxes, if the deficiency is not paid in a timely fashion, interest is imposed on the unpaid amount for a period that begins on the date of:

These and other items were included as guaranteed to taxpayers in the various incarnations of the Taxpayers Bill of Rights:

Individual Taxpayers have around a 20% chance of being audited.

The Tax Court will review a taxpayer's case, provided that he or she files a petition with the court within:

The IRS has increased the number of tax return processing centers with the increase in electronic filing of returns.

Form 911 is a Request for Taxpayer Advocate Assistance.

A Power of Attorney is necessary when a qualified representative goes to the IRS to represent a Taxpayer.

The IRS was established by Congress on July 1, 1682, to meet the fiscal needs of the Civil War.

A written revenue agent's report (RAR) is prepared by the IRS agent and is given to the taxpayer:

Why would a Taxpayer choose to go to District Court or the Court of Federal Claims and not to U.S. Tax Court?

The Chief Counsel is appointed by the President and reports to the Commissioner of the IRS.

Signed into law in 1996, guarantees taxpayers various rights to representation before the IRS. What is it called?

'Economic reality' factors are considered by the IRS in selection of returns for audit only where it has some other evidence that the taxpayer has over reported taxable income for the year.

A taxpayer's appeal must be in written form if the total proposed additional tax and penalties exceed $2,500.

The IRS treats an adjustment in tax resulting from an unallowable item identified in return as a correction of a mathematical or clerical error.

Introduction to Tax Practice and Ethics

Tax Research Methodology

Constitutional and Legislative Sources

Administrative Regulations and Rulings

Judicial Interpretations

Tax Services Ria Checkpoint

Tax Services Cch Intelliconnect

Tax Services Specialty and Others

Multijurisdictional and Other Research

Financial Accounting Research

Communicating Research Results

Tax Planning

Tax Practice and Administration: Sanctions, Agreements, and Disclosures

Filters