Question 1

What are the major duties of the IRS Oversight Board?

Accepted Answer

The answer of What are the major duties of the...

Question 2

Some of the factors believed to be perused in an economic-reality audit include the which of 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 these are correct

Question 3

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

Accepted Answer

A) computes the seemingly necessary adjustment in taxes and notifies the taxpayer 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 4

The IRS Oversight Board:

Accepted Answer

A) has the authority to affect tax policy 
B) has the authority to affect the processing of individual tax cases 
C) can intervene in IRS personnel or procurement matters 
D) can review and approve the IRS annual budget request

Question 5

Enumerate how the IRS conducts a field examination.

Accepted Answer

The answer of Enumerate how the IRS conducts a field...

Question 6

What is the formula that 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

Question 7

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

Question 8

The number of routine math errors has increased sharply due to increase in electronic filing.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following examinations involves complex issues that require more advanced knowledge of the internal revenue laws and accounting skills?

Accepted Answer

A) correspondence examination 
B) field examination 
C) office examination 
D) arithmetical error examination

Question 10

When a taxpayer does not agree with the IRS agent's proposed adjustments a:

Accepted Answer

A) 30-day letter is issued 
B) RAR is issued 
C) 10-day notice is issued 
D) 21-day notice is issued

Question 11

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 12

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

Question 13

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 14

"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

The answer of "If a taxpayer cannot resolve his or...

Question 15

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

Question 16

Which of 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.

Question 17

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 18

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

The answer of Why would a taxpayer choose to go...

Question 19

The IRS is responsible for administering and enforcing the internal revenue laws of the United States.

Accepted Answer

A) True 
 B)False

Question 20

The highest ranking legal adviser of the IRS is the:

Accepted Answer

A) Attorney General 
B) Chief Attorney 
C) District Attorney 
D) Chief Counsel

Exam 13: Working With the IRS

What are the major duties of the IRS Oversight Board?

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

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

The IRS Oversight Board:

Enumerate how the IRS conducts a field examination.

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

A statutory notice of deficiency is also known as a:

The number of routine math errors has increased sharply due to increase in electronic filing.

Which of the following examinations involves complex issues that require more advanced knowledge of the internal revenue laws and accounting skills?

When a taxpayer does not agree with the IRS agent's proposed adjustments a:

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.

The National Taxpayer Advocate:

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

"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.

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

Which of the following is NOT a factor in favor of the Protest/Appeals Process?

A power of attorney is necessary when a qualified representative goes to the IRS to represent a 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 IRS is responsible for administering and enforcing the internal revenue laws of the United States.

The highest ranking legal adviser of the IRS is the: