Question 1

There is a general common law privilege of confidentiality for non-criminal tax matters that exists between a Taxpayer and his or her Tax Practitioner.

Accepted Answer

A) True 
 B)False

Question 2

In cases where IRS examiner questions only one or two items on a selected return, an examination is typically conducted by mail called a correspondence examination.

Accepted Answer

A) True 
 B)False

Question 3

The Appeals Office has the exclusive and final authority to settle cases that originate in any district irrespective of its jurisdiction.

Accepted Answer

A) True 
 B)False

Question 4

Your client has just received an IRS summons to appear for an interview. Which of the following statements is false concerning this interview:

Accepted Answer

A)  Provided your client gives prior notice to the IRS, the taxpayer may tape-record the interview. 
B)  The IRS may tape record the interview but must provide a transcript of the recording to the taxpayer if he requests a copy and pays for the copying charges. 
C)  Notes may not be taken by either the IRS agent or the taxpayer during the interview. 
D)  The IRS investigator must explain various taxpayer rights to your client before commencing the interview. 
A)  Provided your client gives prior notice to the IRS, the taxpayer may tape-record the interview. 
B)  The IRS may tape record the interview but must provide a transcript of the recording to the taxpayer if he requests a copy and pays for the copying charges. 
C)  Notes may not be taken by either the IRS agent or the taxpayer during the interview. 
D)  The IRS investigator must explain various taxpayer rights to your client before commencing the interview.

Question 5

The IRS Oversight Board is made up of only IRS officials.

Accepted Answer

A) True 
 B)False

Question 6

If a return is identified as including an unallowable item, the IRS:

Accepted Answer

A)  Computes the seemingly necessary adjustment in taxes, and the taxpayer is notified by mail. 
B)  Sends a formal notice of deficiency to the taxpayer. 
C)  Considers the contact that it makes with a taxpayer under this circumstance to be an examination. 
D)  Cancels the return and asks the taxpayer to file his return again. 
A)  Computes the seemingly necessary adjustment in taxes, and the taxpayer is notified by mail. 
B)  Sends a formal notice of deficiency to the taxpayer. 
C)  Considers the contact that it makes with a taxpayer under this circumstance to be an examination. 
D)  Cancels the return and asks the taxpayer to file his return again.

Question 7

If a taxpayer and the IRS cannot agree on the proposed adjustments after an appeals conference, the regional director of appeals will issue a:

Accepted Answer

A)  30-day letter 
B)  90-day letter 
C)  21-day letter 
D)  10-day letter 
A)  30-day letter 
B)  90-day letter 
C)  21-day letter 
D)  10-day letter

Question 8

The Taxpayer Assistance Order (TAO) is issued by the:

Accepted Answer

A)  Secretary of Treasury 
B)  Chief Counsel 
C)  National Taxpayer Advocate 
D)  Commissioner of IRS 
A)  Secretary of Treasury 
B)  Chief Counsel 
C)  National Taxpayer Advocate 
D)  Commissioner of IRS

Question 9

A field examination is usually limited to an examination of corporations and individual business returns.

Accepted Answer

A) True 
 B)False

Question 10

Generally, the IRS selects returns for examination through the use of mathematical models, including correlations and discriminant functions.

Accepted Answer

A) True 
 B)False

Question 11

A statutory notice of deficiency is also known as a:

Accepted Answer

A)  30-day letter 
B)  10-day letter 
C)  90-day letter 
D)  21-day letter 
A)  30-day letter 
B)  10-day letter 
C)  90-day letter 
D)  21-day letter

Question 12

A form 911 is filed by the Taxpayer for which of the following:

Accepted Answer

A)  National Research Program 
B)  Appeals Conference 
C)  Tax Court Hearing 
D)  Taxpayer Advocate Service Assistance 
A)  National Research Program 
B)  Appeals Conference 
C)  Tax Court Hearing 
D)  Taxpayer Advocate Service Assistance

Question 13

The procedure used to match the information recorded on a return with corresponding data received from third parties is referred to as:

Accepted Answer

A)  Information Document Reconciliation Program 
B)  Information Document Review Program 
C)  Information Document Check Program 
D)  Information Document Matching Program 
A)  Information Document Reconciliation Program 
B)  Information Document Review Program 
C)  Information Document Check Program 
D)  Information Document Matching Program

Question 14

The IRS examines each and every return critically in order to generate additional revenue for the Treasury.

Accepted Answer

A) True 
 B)False

Question 15

The National Research Program (NRP) provides statistics that are used in the development and update of the DIF formulas.

Accepted Answer

A) True 
 B)False

Question 16

What are the 'dos and don'ts' in negotiating with a government auditor?

Accepted Answer

Most practitioners develop over time a l

Question 17

The following is NOT a factor in favor of the Protest/Appeals Process:

Accepted Answer

A)  An appeals officer can consider the hazards of litigation. 
B)  The litigation path remains a possibility even if an appeal is pursued. 
C)  The conclusion of the dispute, whether for or against the taxpayer, is expedited. 
D)  The appeals process allows a further delay in the payment of the disputed tax. 
A)  An appeals officer can consider the hazards of litigation. 
B)  The litigation path remains a possibility even if an appeal is pursued. 
C)  The conclusion of the dispute, whether for or against the taxpayer, is expedited. 
D)  The appeals process allows a further delay in the payment of the disputed tax.

Question 18

"If a taxpayer cannot resolve his or her dispute with the IRS administratively, he or she may seek judicial relief."
Explain how a taxpayer can seek relief through the judicial system.

Accepted Answer

If a taxpayer cannot resolve his or her

Question 19

Which of the following issues would most typically not be handled as a correspondence examination:

Accepted Answer

A)  Mathematical errors. 
B)  Clearly defined unallowable deductions. 
C)  Errors detected through matching of forms 1099 and W-2. 
D)  Questions concerning gambling income. 
A)  Mathematical errors. 
B)  Clearly defined unallowable deductions. 
C)  Errors detected through matching of forms 1099 and W-2. 
D)  Questions concerning gambling income.

Question 20

What is the formula which assigns numeric weights to certain (undisclosed by the IRS) return items, generating a composite score for the return

Accepted Answer

A)  Selection of Returns formula. 
B)  Unallowable Items formula. 
C)  Discriminant function formula (DIF). 
D)  Mathematical Errors formula. 
A)  Selection of Returns formula. 
B)  Unallowable Items formula. 
C)  Discriminant function formula (DIF). 
D)  Mathematical Errors formula.

There is a general common law privilege of confidentiality for non-criminal tax matters that exists between a Taxpayer and his or her Tax Practitioner.

In cases where IRS examiner questions only one or two items on a selected return, an examination is typically conducted by mail called a correspondence examination.

The Appeals Office has the exclusive and final authority to settle cases that originate in any district irrespective of its jurisdiction.

Your client has just received an IRS summons to appear for an interview. Which of the following statements is false concerning this interview:

The IRS Oversight Board is made up of only IRS officials.

If a return is identified as including an unallowable item, the IRS:

If a taxpayer and the IRS cannot agree on the proposed adjustments after an appeals conference, the regional director of appeals will issue a:

The Taxpayer Assistance Order (TAO) is issued by the:

A field examination is usually limited to an examination of corporations and individual business returns.

Generally, the IRS selects returns for examination through the use of mathematical models, including correlations and discriminant functions.

A statutory notice of deficiency is also known as a:

A form 911 is filed by the Taxpayer for which of the following:

The procedure used to match the information recorded on a return with corresponding data received from third parties is referred to as:

The IRS examines each and every return critically in order to generate additional revenue for the Treasury.

The National Research Program (NRP) provides statistics that are used in the development and update of the DIF formulas.

What are the 'dos and don'ts' in negotiating with a government auditor?

The following is NOT a factor in favor of the Protest/Appeals Process:

"If a taxpayer cannot resolve his or her dispute with the IRS administratively, he or she may seek judicial relief." Explain how a taxpayer can seek relief through the judicial system.

Which of the following issues would most typically not be handled as a correspondence examination:

What is the formula which assigns numeric weights to certain (undisclosed by the IRS) return items, generating a composite score for the return

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

There is a general common law privilege of confidentiality for non-criminal tax matters that exists between a Taxpayer and his or her Tax Practitioner.

In cases where IRS examiner questions only one or two items on a selected return, an examination is typically conducted by mail called a correspondence examination.

The Appeals Office has the exclusive and final authority to settle cases that originate in any district irrespective of its jurisdiction.

Your client has just received an IRS summons to appear for an interview. Which of the following statements is false concerning this interview:

The IRS Oversight Board is made up of only IRS officials.

If a return is identified as including an unallowable item, the IRS:

If a taxpayer and the IRS cannot agree on the proposed adjustments after an appeals conference, the regional director of appeals will issue a:

The Taxpayer Assistance Order (TAO) is issued by the:

A field examination is usually limited to an examination of corporations and individual business returns.

Generally, the IRS selects returns for examination through the use of mathematical models, including correlations and discriminant functions.

A statutory notice of deficiency is also known as a:

A form 911 is filed by the Taxpayer for which of the following:

The procedure used to match the information recorded on a return with corresponding data received from third parties is referred to as:

The IRS examines each and every return critically in order to generate additional revenue for the Treasury.

The National Research Program (NRP) provides statistics that are used in the development and update of the DIF formulas.

What are the 'dos and don'ts' in negotiating with a government auditor?

The following is NOT a factor in favor of the Protest/Appeals Process:

"If a taxpayer cannot resolve his or her dispute with the IRS administratively, he or she may seek judicial relief." Explain how a taxpayer can seek relief through the judicial system.

Which of the following issues would most typically not be handled as a correspondence examination:

What is the formula which assigns numeric weights to certain (undisclosed by the IRS) return items, generating a composite score for the return

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