1. This is any person who is a member in good standing of the bar of the highest court of any state, territory, or possession of the United States, including a commonwealth, or the District of Columbia.
A.
Certified Public Accountant.
B. An
Attorney.
C. A
practitioner.
D.
The Commissioner.
2. Enrollment as an enrolled agent based on an applicant's formal employment with the Internal Revenue Service may be
A.
Unlimited scope.
B.
Limited to permit the presentation of matters only of the particular class for
which the applicant's former employment has qualified the applicant.
C.
Limited to permit the presentation of matters only before the particular unit or
division of the Internal Revenue Service for which the applicant's former
employment has qualified the applicant.
D.
Any of the above.
3. Individuals may not appear on their own behalf before the Internal Revenue Service that is why we have enrolled agents.
True False
4. An applicant for enrollment as an enrolled agent who is requesting such enrollment based on former employment with the Internal Revenue Service must have had a minimum number of years of continuous employment with the Internal Revenue Service during which the applicant must have been regularly engaged in applying and interpreting the provisions of the Internal Revenue Code and the regulations relating to income, estate, gift, employment, or excise taxes. Minimum years of continuous employment must be
A. 2
years.
B. 3
years.
C. 5
years.
D. 7
years.
5. The director of the Office of Professional Responsibility must inform the EA enrollment applicant as to the reason for any denial of an applicant for enrollment. The applicant may,
A.
Petition to retake the EA examination to be reconsidered.
B.
Within 30 days after receipt of the notice of denial of enrollment, file a
written appeal of the denial with the Secretary of the Treasury or his or her
delegate.
C.
Be granted temporary recognition to practice pending a determination as to
whether enrollment to practice should be granted.
D.
Within 6 months after receipt of the notice of denial of enrollment, file a
written appeal of denial.
6. Each individual applying for renewal of their EA enrollment must retain for a period of three years following the date of renewal of enrollment the information required with regard to qualifying continuing professional education hours. Such information does not include
A. The name of the sponsoring organization.
B. Location, title of and description of the content of the program.
C. The publisher information of the study material used.
D.
Written outlines, course syllabi, textbook, and/or electronic materials provided
or required for the course.
7. Subject to certain limitations, an individual who is not a practitioner may represent a taxpayer before the Internal Revenue Service, even if the taxpayer is not present, provided the individual presents satisfactory identification and proof of his or her authority to represent the taxpayer. Such as in the following situation.
A. An
individual may represent a member of his or her immediate family.
B. A
regular full-time employee of an individual employer may represent the employer.
C. A
general partner or a regular full-time employee of a partnership may represent
the partnership.
D.
All of the above.
8. Any individual may prepare a tax return, appear as a witness for the taxpayer before the Internal Revenue Service, or furnish information at the request of the Internal Revenue Service or any of its officers or employees.
True False
9. An individual who prepares and signs a taxpayer's tax return as the preparer, or who prepares a tax return but is not required (by the instructions to the tax return or regulations) to sign the tax return may represent the taxpayer before revenue agents, customer service representatives or similar officers and employees of the Internal Revenue Service during an examination of the taxable year or period covered by that tax return,
A. And
this right permits such individual to represent the taxpayer before appeal
officers.
B. And
this right permits such individual to represent the taxpayer before employees of
the Internal Revenue Service or the Department of Treasury.
C.
But, this right does not permit such individual to represent the taxpayer before
appeals officers, revenue officers, counsel or similar officers or employees of
the Internal Revenue Service.
D. Is
subject to rules of general applicability regarding standards of conduct and
other matters as the Director of the Office of Professional Responsibility
prescribes.
10. A practitioner must, on a proper and lawful request by a duly authorized officer or employee of the Internal Revenue Service, promptly submit records or information in any matter before the Internal Revenue Service
A. Always.
B. Only after being authorized by the taxpayer to do so.
C. Unless the practitioner believes in good faith and on reasonable grounds that
the records or information are privileged.
D.
None of the above.
11. The following is a true statement regarding practitioners.
A. The practitioner must use reasonable efforts to identify and ascertain the
facts, which may relate to future events if a transaction is prospective or
proposed, and to determine which facts are relevant.
B. The practitioner can base an opinion on any unreasonable factual assumptions
(including assumption as to future events).
C. The practitioner can base an opinion on any unreasonable factual
representations, statements or findings or of the taxpayers or any other person.
D. It
is reasonable for a practitioner to rely on a projection, financial forecast or
appraisal if the practitioner knows or should know that it is incorrect or
incomplete or was prepared by a person lacking skills or qualifications.
12. Any practitioner who has principal authority and responsibility for overseeing a firm's practice of providing advice concerning Federal tax issues must take reasonable steps to ensure that the firm has adequate procedures in effect for all members, associates, and employees. Any such practitioner will be subject to discipline for failing to comply with the requirements if
A. The practitioner takes reasonable steps to ensure that the firm has adequate
procedures to comply with section 10.35 of Cir. 230, and individuals who are
members of, associated with, or employed by, the firm are, or have engaged in a
pattern or practice, in connection with their practice with the firm, fail to
comply with such.
B. The practitioner knows or should know that one or more individuals that don't
comply with section 10.35 of Cir. 230 and the practitioner fails to take prompt
action to correct the noncompliance.
C. The practitioner does not give written advice as to the conduct of
individuals who are not in compliance with section 10.35 of Cir. 230.
D. None of the above.
13. The Secretary of the Treasury, or delegate, after notice and an opportunity for a proceeding, may censure, suspend, or disbar any practitioner from practice before the Internal Revenue Service if the practitioner
A. Is shown to be incompetent or disreputable.
B. Fails to comply with any regulation under the prohibited conduct standards or
with intent to defraud.
C. Willfully and knowingly misleads or threatens a client or prospective client.
D.
Any of the above.
14. Incompetence or disreputable conduct for which a practitioner may be sanctioned includes
A. Willfully disclosing or otherwise using a tax return or tax return
information in a manner authorized by the Internal Revenue Code.
B. Failing to sign a tax return prepared by the practitioner when the
practitioner's signature is not required by the Federal tax laws.
C. Contemptuous conduct in connection with practice before the Internal Revenue
Service, including the use of abusive language or making false accusations or
statements, knowing them to be false.
D.
Giving false or misleading information to the Department of the Treasury or any
officer or employee thereof, or to any tribunal authorized to pass upon Federal
tax matters, when not knowing the information to be false or misleading.
15. A complaint is not sufficient to just fairly inform the respondent of the charges brought so that the respondent is able to prepare a defense.
True False
16. To maintain active enrollment to practice before the Internal Revenue Service, each individual is required to have the enrollment renewed. The following statement is correct regarding enrollment renewal.
A. If you don't receive notification from the Director of the Office of
Professional Responsibility of the renewal requirement it means the individual
is not required to renew.
B. The effective date of renewal is the first day of the fourth month following
the close of the period for renewal.
C. A minimum of 42 hours of continuing education credit must be completed during
each enrollment cycle.
D.
A minimum of 10 hours of continuing education credit must be completed during
each enrollment year of an enrollment cycle.
17. To qualify for continuing education credit for an enrolled agent, a course of learning must
A. Be a qualifying program to enhance professional knowledge in Federal taxation
or Federal taxation related matters.
B. Be a qualifying program consistent with the Internal Revenue Code and
effective tax administration.
C. Be sponsored by a qualifying tax education sponsor.
D.
All of the above.
18. A practitioner may take acknowledgements, administer oaths, certify papers, or perform official acts as a notary, public respect to any matter administered by the Internal Revenue Service.
True False
19. A practitioner shall not represent a client before the Internal Revenue Service if the representation involves a conflict of interest. A conflict of interest exists if
A. There is no significant risk that the representation of one or more clients
will be materially limited by the practitioner's responsibility to another
client, a former client or a third person, or by a personal interest of the
practitioner.
B. The representation of one client will be directly adverse to another client.
C. The representation is prohibited by law.
D.
Each affected client waives the conflict of interest and gives informed consent.
20. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in the preparation of a submission to the Internal Revenue Service. Best practice includes
A. Not communicating clearly with the client regarding the terms of the
engagement.
B. Not advising a taxpayer to avoid accuracy-related penalties under the
Internal Revenue Code if a taxpayer acts in reliance on the advice.
C. Establishing the facts, determining which facts are relevant, evaluating the
reasonableness of any assumptions or representations, relating the applicable
law to the relevant facts, and arriving at a conclusion supported by the law and
the facts.
D.
Not advising the client regarding the import of the conclusions reached.