1. Providers appoint an individual as a Responsible Official who is responsible for ensuring the firm meets IRS e-file rules and requirements. Providers with problems involving fraud and abuse may be
A.
Suspended or expelled from participation in IRS e-file.
B.
Assessed civil and preparer penalties.
C.
Subject to legal action.
D.
All of the above.
2. The IRS has developed six new security and privacy standards to better protect taxpayer information collected, processed and stored by Providers participating in Online Filing of individual income tax returns.
True False
3. Standard 1 applies to Authorized IRS e-file Providers participating in Online Filing of Individual income tax returns that collect taxpayer information via the Internet. The providers shall
A.
Possess a valid and current Extended Validation Secure Socket Layer (SSL)
certificate using SSL 3.0/TLS 1.0 or later.
B. Use
Windows XP-Pro or better.
C.
Have a fast connection for computer security purposes.
D.
All of the above.
4. Standard 2 applies to Authorized IRS e-file Providers participating in Online Filing of individual income tax returns that collect, transmit, process or store taxpayer information. The following is a true statement regarding e-file security and Privacy Standard number 2.
A.
Providers shall contract with an independent third-party vendor to run weekly
external network vulnerability scans of all their "system components" in
accordance with the applicable requirements of the Payment Card Industry Data
Security Standard (PCIDSS).
B. All
scans shall be performed by a scanning vendor certified by the Payment Card
Industry Security Standards Council and listed on their current list of Approved
Scanning Vendors (ASV).
C.
Providers whose systems are hosted shall ensure that their host complies with
all applicable requirements of the PCIDSS.
D.
All of the above.
5. "System components" means any network component, server or application that is included in or connected to the taxpayer date environment.
True False
6. Standard 3 applies to Authorized IRS e-file Providers participating in Online Filing of individual income tax returns that own or operate a Web site through which taxpayer information is collected, transmitted, processed or stored. In addition, Standard 3 states that Providers shall
A. Be diligent in recognizing and preventing fraud and abuse in IRS e-file.
B. Have
a written information privacy and safeguard policy consistent with the
applicable government and industry guidelines and including the following
statement: "we maintain physical, electronic and procedural safeguards that
comply with applicable law and federal standards".
C.
Implement an effective challenge-response protocol to protect their Web site
against malicious bots.
D. All
of the above.
7. Standard 4 applies to Authorized IRS e-file Providers participating in Online Filing of individual income tax returns that own or operate a Web site through which taxpayer information is collected, transmitted, processed or stored. The Providers shall
A.
Implement an effective challenge-response protocol (e.g., CAPTCHA) to protect
their Web site against malicious bots.
B. Not
collect, transmit, process or store taxpayer information unless the user
successfully completes this challenge-response test.
C.
Continue collecting taxpayer information via their Web site with caution until
the incident is successfully resolved.
D.
Both A and B above.
8. Standard 5, Public Domain Name Registration applies to Authorized IRS e-file Providers participating in Online Filing of individual income tax returns that own or operate a Web site through which taxpayer information is collected, transmitted, processed or stored. These providers shall
A.
Have their Web site's domain name registered with a domain name registrar that
is located in the United States.
B.
Have a Web site that is accredited by the Internet Corporation for Assisted
Names and Number (ICANN).
C.
Have a domain name that shall be locked and not be private.
D.
All of the above.
9. Standard 6 applies to Authorized IRS e-file Providers participating in Online Filing of individual income tax returns that collect, transmit, process, or store taxpayer information. These Providers shall
A.
Report security incidents to the IRS once every month.
B.
Report security incidents to the IRS as soon as possible but not later than the
next business day after confirmation of the incident.
C.
Continue collecting taxpayer information via their Web site cautiously upon
detection of an incident and until the underlying causes of the incident are
successfully resolved.
D. Be
aware that an event can be a result in an unauthorized disclosure, misuse,
modification or destruction of taxpayer information are not considered a
reportable security incident.
10. A taxpayer can electronically file an individual income tax return after the 15th day of October as long as the IRS has granted an extension to file a return beyond that date.
True False
11. The following individual income tax returns and related return conditions cannot be processed using IRS e-file.
A.
Other than current year tax returns.
B. Tax
returns with fiscal year tax periods.
C.
Amended tax returns.
D. Any
of the above.
12. An electronically filed return is not considered filed until the IRS acknowledges acceptance of the electronic portion of the tax return for processing.
True False
13. An ERO that chooses to originate returns that is has not prepared, but only collected, becomes an income tax return preparer of the returns when,
A.
As a result of entering data, it discovers errors that require substantive
changes and then makes changes.
B. As a result of entering the data, discovers errors that require substantive
changes and makes no changes.
C. As such, the ERO is not required to sign the return as the tax return
preparer because he or she did not prepare the return.
D.
None of the above.
14. To confirm identities, an ERO should ask taxpayers not known to them to provide two forms of identification that include the taxpayer's name and current address.
True False
15. The following statement is a true statement regarding direct deposit of refunds.
A. A provider must never charge a separate fee for Direct Deposit and must
accept any Direct Deposit election by a taxpayer to any eligible financial
institution.
B. The taxpayer may never split refunds between different accounts; only one
account may be used for Direct Deposit.
C. Taxpayers often elect the Direct Deposit option because it is the fastest way
of receiving refunds, and it is even faster if the taxpayer designates refunds
for Direct Deposit to credit card accounts.
D.
The provider can alter the Direct Deposit information in the electronic record
after the taxpayers have signed the return if the information was entered
incorrectly.
16. The following is a method of signing individual income tax returns with an electronic signature available for use by the taxpayers. This method allows taxpayers to use a personal identification Number (PIN) to sign the return and the Declaration of Taxpayer.
A. Self-selected PIN which is a method that requires taxpayers to provide their
prior year Adjusted Gross Income (AGI) amount or prior year PIN for use by the
IRS to authenticate the taxpayers.
B. The Practitioner PIN which is a method that doe not require the taxpayer to
provide their prior year AGI amount or prior year PIN.
C. Both A and B above.
D. None of the above.
17. The ERO must retain Forms 8879 and 8878 for ____________ from the return due date or the IRS received date, whichever is later and must not send Forms 8879 and 8878 to the IRS unless the IRS requests they do so.
A. 2 years.
B. 3 years.
C. 4 years.
D. 5 years.
18. EROs must not electronically file individual income tax returns prior to receiving Forms W-2, W-2G or 1099-R. If the taxpayer is unable to secure and provide a correct Form W-2, W-2G. The ERO may electronically file the return after the taxpayer completes Form 4852, in accordance with the use of that form. If Form 4852 is used,
A. The ERO can submit copies of taxpayer's W-2.
B. The ERO can only paper file the income tax returns for the taxpayer.
C. The non-standard W-2 indicator must be included in the record, and the ERO
must maintain Form 4852 in the same manner required for Forms W-2, W-2G and
1099-R.
D. The ERO can stockpile returns at his office.
19. EROs must retain the following material until the end of the calendar year at the business, address from which it originated the return or at a location that allows the ERO to readily access the material as it must be available at the time of the IRS request. An ERO may retain the required records at the business address of the Responsible Official or at a location that allows the Responsible Official to readily access the material during any period of time the office is closed, as it must be available at the time the IRS request thought the end of the calendar year.
A. A copy of Form
8453 and supporting documents that are not included in the electronic records
submitted to the IRS.
B. Copies of Form
W-2, W-2G, 1099-R and a copy of signed IRS e-file consent to disclosure forms.
C. A complete copy
of the electronic portion of the return that can be readily and accurately
converted into an electronic transmission that the IRS can process and the
acknowledgement file for the IRS accepted returns.
D. Any of the
above.
20. Providers must not use improper or misleading advertising in relation to IRS e-file, including the time frames for refunds and RALs or other financial products. A provider must not
A. Advertise that
individual income tax returns may be electronically filed prior to the
Provider's receipt of Form W-2, W-2G and 1099-R, as the Provider is generally
prohibited from electronically filing returns prior to receipt of Form W-2,
W-2G, and 1099-R.
B. Imply that the
Provider does not need Form W-2, W-2G or 1099-R, or that is can use pay stubs or
other documentation of earnings to e-file individual income tax returns.
C. Advertise a RAL
or other financial product that is not easy to identify or in readable print and
must make clear in the advertising that the taxpayer is borrowing against the
anticipated refund or receiving another financial product and is not obtaining
the refund itself from the financial institution.
D. All of the
above.