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PART 3 SAMPLE QUESTIONS
1.hoHowhooftenhomusthoenrolledhoagentshorenewhotheirhoenrollment? A)hoEveryhothreehoyears. B)hoEveryhofivehoyears. C)hoEveryhoyear. D)hoNonehoofhothehoabove.ho-hoans--✔✔A)hoEveryhothreehoyears. 2.hoUnderhoCircularho230,hoanhoemployerhoofhootherhotaxhopreparershomust: A)hoFurnishhothehoIRShoahorecordhoofhoallhotaxhoreturnhopreparershoemployed. B)hoKeephoahorecordhoofhoallhotaxhoreturnhopreparershoemployedhoandhomakehoithoavailabl ehoforhoIRShoinspectionhouponhorequest. C)hoDocumenthoeachhotaxhopreparer'shoperformancehoandhokeephoahorecordhothathomusth obehomadehoavailablehoforhoIRShoinspectionhouponhorequest. D)hoAllhoofhothehoabove.ho-hoans-- ✔✔B)hoKeephoahorecordhoofhoallhotaxhoreturnhopreparershoemployedhoandhomakehoithoavai lablehoforhoIRShoinspectionhouponhorequest. 3.hoInhowhichhoofhothehofollowinghosituationshomusthoahotaxhoreturnhopreparerhoobtainhoclie nthoconsenthotohodisclosehoorhoreceivehosensitivehotaxhoreturnhoinformation?ho A)hoThehopreparerhoreceiveshoahograndhojuryhosubpoenahorequestinghoclienthorecords. B)hoThehopreparerhoreportshoahopossiblehocrimehotohoauthoritieshoinvolvinghoonehoofhohish oclients. C)hoForhopurposeshoofhopeerhoreviews. D)hoNonehoofhothehoabovehorequireshopermissionhofromhoahoclient.ho-hoans-- ✔✔D)hoNonehoofhothehoabovehorequireshopermissionhofromhoahoclient. 4.hoAhosinglehofinancialhoaccounthoisholimitedhotoho_____hoelectronically- depositedhotaxhorefundshoperhotaxhoyear. A)hoOne. B)hoTwo. C)hoThree. D)hoNoholimit.ho-hoans--✔✔C)hoThree. 5.hoWhichhoofhothehofollowinghoishonothoahoreasonhoforhothehoIRShotohoabatehointeresthoonh oahotaxpayer'shotaxholiability? A)hoManagerialhoact. B)hoMinisterialhoact. C)hoReasonablehocause.
D)hoWhenhothehointeresthowashoincurredhowhilehothehotaxpayerhowashoinhoahocombathozon ehoorhodeclaredhodisasterhoarea.ho-hoans--✔✔C)hoReasonablehocause. 6.hoStacyhoishoanhoenrolledhoagenthowithhotwohoclientshowhohoarehobothhopartieshoinhotheho potentialhosalehoofhoahobusiness.hoThehosalehoishonothoprohibitedhobyholaw.hoStacyhobeliev eshoshehocanhoprovidehocompetenthoandhodiligenthorepresentationhotohoeachhoclient.hoWhi chhostatementhobesthodescribeshothehoactionhoStacyhomusthotakehotohofulfillhothehorequire mentshoofhoCircularho 230 hobeforehorepresentinghobothhoclients? A)hoSincehoshehohashoalreadyhoresearchedhothehosituationhoandhodeterminedhoshehoishoc ompetenthotohohandlehothehomatter,hoStacyhoishonothorequiredhotohotakehofurtherhoaction. B)hoStacyhomusthoobtainhoeitherhooralhoorhowrittenhopermissionhofromhobothhoclients,hostat inghotheyhohavehobeenhomadehoawarehoofhothehopotentialhoforhoconflicthoofhointerest.ho C)hoStacyhomusthomeethowithhobothhoclientshoathothehosamehotimehotohoinformhothemhoofho thehopotentialhoforhoconflicthoofhointerest. D)hoStacyhomusthoinformhoeachhoclienthoofhothehopotentialhoforhoconflicthoofhointeresthoand hothenhoobtainhowrittenhowaivershoofhothehoconflicthofromhobothhoclients.ho-hoans-- ✔✔D)hoStacyhomusthoinformhoeachhoclienthoofhothehopotentialhoforhoconflicthoofhointerestho andhothenhoobtainhowrittenhowaivershoofhothehoconflicthofromhobothhoclients. 7.hoInhoevaluatinghoahotaxpayer'shoabilityhotohopayhohishotaxholiability,howhichhoofhothehofoll owinghoexpenseshoishothehoIRSholeastholikelyhotohochallengeho(becausehoithoishonothoindic ativehoofhoaholifestylehochoice)? A)ho$10,000hoahoyearhoforhocourt-orderedhochildhosupport.ho B)ho$10,000hoahoyearhoforhorestauranthomeals. C)ho$10,000hoahoyearhoforhotuition. D)ho$10,000hoahoyearhoforhorent.ho-hoans--✔✔A)ho$10,000hoahoyearhoforhocourt- orderedhochildhosupport. 8.hoDuringhothehoexaminationhoofhoahotaxpayer'shoFormho1040,hothehoIRShoexaminerhofou ndhonumeroushoerrorshoresultinghoinhoadditionalhotax.hoOnehoofhothehoadjustmentshowasho aholargehoamounthoofhounreportedhoincomehodiscoveredhoinhoahoconcealedhobankhoaccou nt.hoSomehodeductionshowerehosupportedhowithhoalteredhoorhodefacedhodocuments.hoThe hotaxpayerhogavehofalsehoinformationhoandhomisrepresentedhothehofactshothroughouthothe hoexamination.hoAllhoofhothehoactshoofhothehotaxpayer,howhenhoseenhoashoahowhole,hoindic ate: A)hoNegligence.ho B)hoFraud. C)hoNoncompliance. D)hoAhotaxhoprotesterhoargument.ho-hoans--✔✔B)hoFraud. 9.hoWhichhoIRShoinsigniahomayhoahopractitionerhousehoinhohishoadvertising? A)hoThehoofficialhoIRShoe-filehologo.ho B)hoThehoU.S.hoTreasuryhoseal. C)hoThehoIRShoeaglehoinsignia. D)hoThehoFMShoinsignia.ho-hoans--✔✔A)hoThehoofficialhoIRShoe-filehologo.
14.hoThehoIRShohashothehoauthorityhotohoissuehoahosummonshoinhoallhoofhothehofollowinghoi nstanceshoexcept: A)hoTohopreparehoahosubstitutehoreturnhowhenhoahotaxpayerhohashonothofiledhoone. B)hoTohodeterminehotheholiabilityhoofhoahotaxpayer. C)hoTohocollecthoanyhointernalhorevenuehotaxholiability D)hoTohorequirehoahotaxpayerhotohocreatehoahotaxhoreturnhowhenhohehohashonothofiledhoone .ho-hoans-- ✔✔D)hoTohorequirehoahotaxpayerhotohocreatehoahotaxhoreturnhowhenhohehohashonothofiledho one. 15.hoLouiehoishoahotaxhopreparer.hoHishonewhoclient,hoMinerva,howantshotohoclaimhothehoE arnedhoIncomehoTaxhoCredit.hoWhichhoofhothehofollowinghoissueshowouldhoautomaticallyho disqualifyhoMinervahofromhoclaiminghothehoEarnedhoIncomehoTaxhoCredithoforhotheho 2015 h otaxhoyear? A)hoInvestmenthoincomehoofho$3,450. B)MinervahofileshoashoMarriedhoFilinghoSeparately. C)hoMinervahofileshoherhotaxhoreturnhousinghoahovalidhoITIN. D)hoAllhoofhothehoabovehowouldhodisqualifyhoherhofromhoclaiminghothehocredit.ho-hoans-- ✔✔D)hoAllhoofhothehoabovehowouldhodisqualifyhoherhofromhoclaiminghothehocredit. 16.hoClarencehoishoanhoenrolledhoagent.hoHishoclienthowantshotohoknowhoifhotheirhodiscussi onshoduringhonormalhotaxhopreparationhoarehoprivileged.hoWhichhostatementhoishocorrect? A)hoUnderhoCircularho230,hodiscussionshosurroundinghothehopreparationhoofhoahotaxhoretur nhoarehoconsideredhoprivilegedhocommunicationshoifhothehopreparerhoishoahopractitioner. B)hoDiscussionshosurroundinghothehopreparationhoofhoahotaxhoreturnhoarehonothoprivileged, horegardlesshoofhowhetherhothehopreparerhoishoahopractitioner. C)hoDiscussionshosurroundinghothehopreparationhoofhoahotaxhoreturnhoarehoalwayshoprivile ged,hoevenhoifhothehopractitionerhoishoanhounenrolledhotaxhoreturnhopreparer. D)hoNonehoofhothehoabovehoishocorrect.ho-hoans-- ✔✔B)hoDiscussionshosurroundinghothehopreparationhoofhoahotaxhoreturnhoarehonothoprivile ged,horegardlesshoofhowhetherhothehopreparerhoishoahopractitioner. 17.hoInhowhichhoofhothehofollowinghosituationshoishoanhoIRShopowerhoofhoattorneyhorequire d?ho A)hoAllowinghothehoIRShotohodiscusshoreturnhoinformationhowithhoahothirdhopartyhodesignee . B)hoAllowinghoahotaxhomattershopartnerhotohoperformhoactshoforhothehopartnership. C)hoAllowinghothehoIRShotohodiscusshoreturnhoinformationhowithhoahofiduciary. D)hoAllowinghothehotaxhopractitionerhotohoreceive,hobuthonothocash,hotaxpayerhorefundhoch ecks.ho-hoans-- ✔✔D)hoAllowinghothehotaxhopractitionerhotohoreceive,hobuthonothocash,hotaxpayerhorefundh ochecks.
18.hoAsherhoishoahotaxhoreturnhopreparerhowhohoacceptshoelectronichosignatures.hoHehoha shoahoclienthowhoholiveshoinhoahodifferenthostate.hoHowhoishoAsherhorequiredhotohoauthentic atehothehoidentityhoofhothehotaxpayer? A)hoThehotaxpayerhomusthomailhoorhofaxhoahocopyhoofhohishoSocialhoSecurityhocardhotohoAs herhoforhoreview. B)hoThehotaxpayerhomusthomailhoorhofaxhoahocopyhoofhohishodriver'sholicense,howithhoahopic turehoID,hotohoAsherhoforhoreview. C)hoAsherhomusthoverifyhothathothehoname,hoSocialhoSecurityhonumber,hoaddress,hodateho ofhobirth,hoandhootherhopersonalhoinformationhoprovidedhobyhothehotaxpayerhoarehoconsist enthowithhoinformationhoobtainedhothroughhorecordhocheckshowithhoapplicablehoagenciesho orhoinstitutions,hoorhothroughhocredithobureaushoorhosimilarhodatabases. D)hoNohospecialhoverificationhoprocedureshoarehorequired.ho-hoans-- ✔✔C)hoAsherhomusthoverifyhothathothehoname,hoSocialhoSecurityhonumber,hoaddress,hoda tehoofhobirth,hoandhootherhopersonalhoinformationhoprovidedhobyhothehotaxpayerhoarehocon sistenthowithhoinformationhoobtainedhothroughhorecordhocheckshowithhoapplicablehoagenci eshoorhoinstitutions,hoorhothroughhocredithobureaushoorhosimilarhodatabases. 19.hoThehoIRShomayhoaccepthoanhoofferhoinhocompromisehobasedhoonhothreehogrounds.ho Whichhoofhothehofollowinghoishonothoahovalidhobasishoforhosubmittinghoanhoofferhoinhocompr omisehotohothehoIRS? A)hoDoubthoashotohocollectability. B)hoEffectivehotaxhoadministration. C)hoDoubthoashotoholiability. D)hoLegitimatehohardshiphoargument.ho-hoans--✔✔D)hoLegitimatehohardshiphoargument. 20.hoInho2015,hothehoIRShoinstitutedhostricterhoprocedureshoforhoITINs.hoITINshowillhonowho automaticallyhoexpirehoafterho__yearshoofhonon-use. A)hoOne. B)hoTwo. C)hoThree. D)hoFive.ho-hoans--✔✔C)hoThree. 21.hoLloydhoishoanhoenrolledhoagent.hoHehohashoahonewhoclient,hoKelly,howhohohashoself- preparedhoherhoownhoreturnshoinhothehopast.hoLloydhonoticeshothathoKellyhohashobeenhocla iminghoheadhoofhohouseholdhostatushoonhoherhotaxhoreturns.hoHowever,hoshehodoeshonoth oqualifyhoforhothishostatus,hobecausehoshehodoeshonothohavehoahoqualifyinghoperson.hoWh athoishoLloydhorequiredhotohodo? A)hoAmendhothehoincorrecthoreturns. B)hoRefusehoanyhofuturehoengagementhowithhoKellyhounlesshoshehocorrectshothehopriorhoy earhoreturns. C)hoNotifyhoKellyhoofhothehoerrorhoandhotellhoherhothehoconsequenceshoofhonothocorrectingh othehoerror. D)hoNotifyhoKellyhoofhothehoerrorhoandhocorrecthothehoerrorhobyhoamendinghoherhopriorhoye arhoreturns.ho-hoans--
A)hoAhotransactionhoofhoahotypehothathothehoIRShohashodeterminedhoashohavinghothehopote ntialhoforhoabusivehotaxhoavoidancehoorhoevasion. B)hoAhocourthodecisionhotohowhichhothehoIRShohashoofficiallyhononhoacquiesced. C)hoAnotherhonamehoforhoahoprivateholetterhoruling. D)hoAhotransactionhoofhoahotypehothathothehoIRShohashodeterminedhowillhobenefithothehopu blichointerest.ho-hoans-- ✔✔A)hoAhotransactionhoofhoahotypehothathothehoIRShohashodeterminedhoashohavinghotheho potentialhoforhoabusivehotaxhoavoidancehoorhoevasion. 28.hoUnderhoCircularho230,hoinhowhichhoofhothehofollowinghocaseshomayhothehoIRShosuspe ndhoahocertifiedhopublichoaccountanthofromhopracticehobeforehothehoIRS? A)hoIfhoahoCPAhomoveshooutsidehothehoU.S.hoandhoattemptshotohorepresenthooverseashota xpayers.ho B)hoIfhoahoCPAhoishosuspendedhofromhopracticehobyhoahostatehoboardhoofhoaccountancyhof orhoahomatterhounrelatedhotohotaxation. C)hoIfhoahoCPAhotakeshoanhoaggressivehopositionhoonhoahotaxhoreturn. D)hoIfhoahoCPAhohireshounenrolledhopreparershotohoworkhoinhohishooffice.ho-hoans-- ✔✔B)hoIfhoahoCPAhoishosuspendedhofromhopracticehobyhoahostatehoboardhoofhoaccountanc yhoforhoahomatterhounrelatedhotohotaxation. 29.hoAshoparthoofhothehoapplicationhotohobecomehoanhoauthorizedhoIRShoe- serviceshoprovider,howhichhoofhothehofollowinghocategorieshoofhotaxhoprofessionalshoishore quiredhotohobehofingerprinted? A)hoEnrolledhoagentshoandhounenrolledhotaxhoreturnhopreparers. B)hoAllhoe-serviceshoapplicantshomusthobehofingerprintedhobyhothehoIRS. C)hoUnenrolledhotaxhoreturnhopreparers. D)hoOnlyhoCPAshoandhotaxhoattorneyshomusthobehofingerprinted,hobecausehotheyhoareholic ensedhobyhothehostate,honothothehofederalhogovernment.ho-hoans-- ✔✔C)hoUnenrolledhotaxhoreturnhopreparers. 30.hoWhichhoofhothehofollowinghoishonothoahorequirementhowhenhoahotaxpayerhorequestshoi nnocenthospousehorelief? A)hoThehotaxpayerhofiledhoahojointhoreturnhothathohashoanhounderstatementhoofhotaxho(defic iency)hothathoishosolelyhoattributablehotohoahospouse'shoerroneoushoitem. B)hoWhenhothehotaxpayerhosignedhothehojointhoreturn,hohehoorhoshehodidhonothoknow,hoand hohadhonohoreasonhotohoknow,hothathotherehowashoanhounderstatementhoofhotaxhoonhotheho return. C)hoTakinghointohoaccounthoallhothehofactshoandhocircumstances,hoithowouldhobehounfairhot ohoholdhothehotaxpayerholiablehoforhothehounderstatementhoofhotax. D)hoThehotaxpayerhomusthohavehoalreadyhofiledhoforhodivorcehoorholegalhoseparationhowhe nhoinnocenthospousehoreliefhoishorequested.ho-hoans-- ✔✔D)hoThehotaxpayerhomusthohavehoalreadyhofiledhoforhodivorcehoorholegalhoseparationho whenhoinnocenthospousehoreliefhoishorequested.
31.hoInhoservinghoahocomplainthoagainsthoahopractitioner,hothehoOfficehoofhoProfessionalho Responsibilityhomayhousehoallhoofhothehomethodsholistedhobelowhoexcept: A)hoPrivatehodeliveryhoservice. B)hoE-mail C)hoFirsthoclasshomail. D)hoInhoperson.ho-hoans--✔✔B)hoE-mail 32.hoWhenhoithocomeshotohopossiblehopreparerhopenalties,hothehoreasonablehocausehoand hogoodhofaithhoexceptionshodohonothoapplyhotohoanhounderstatementhoofhoincomehothathois hoahoresulthoof: A)hoAhotaxpayerhowhohomisrepresentshoinformationhotohothehopreparer. B)hoAnhounreasonablehoposition. C)hoAhopreparer'shomathematicalhoerror. D)hoNonehoofhothehoabove.ho-hoans--✔✔D)hoNonehoofhothehoabove. 33.hoUnderhoInternalhoRevenuehoCodeho§6695,hoahotaxhopreparerhowhohoviolateshoEITCho duehodiligencehorequirementshofaceshowhathopenaltyhoforhotaxhoyearho2015? A)hoAho$505hofinehoforhoeachhoviolation. B)hoAho$1,000hofinehoforhoeachhoviolation. C)hoAho$SOhofinehoforhoeachhoviolation. D)hoAho$1,000hofinehoforhoeachhoviolationhoandhoimprisonmenthouphotohoonehoyear.ho- hoans-- ✔✔D)hoAho$1,000hofinehoforhoeachhoviolationhoandhoimprisonmenthouphotohoonehoyear. 34.hoWhichhoofhothehofollowinghostatementshoishocorrect? A)hoThehoIRShoishonothorequiredhotohonotifyhothehotaxpayerhoofhoanhoaudit. B)hoInhocertainhocircumstances,hothehoIRShomayhoaudithotaxhoreturnshoforhouphotohosixhoye arshoafterhothehofilinghodate. C)hoTaxhoreturnshocanhoonlyhobehoauditedhoforhouphotohotwohoyearshoafterhotheyhoarehofile d. D)hoAnhooriginalhotaxhoreturnhothathoishofiledholatehodoeshonothoextendhothehostatutehoofholi mitationshoforhoanhoaudithoonhothehoreturn.ho-hoans-- ✔✔B)hoInhocertainhocircumstances,hothehoIRShomayhoaudithotaxhoreturnshoforhouphotohosix hoyearshoafterhothehofilinghodate. 35.hoHowholonghoishoanhoIRShopowerhoofhoattorneyhoauthorizationhovalid? A)hoUntilhothehotaxpayer'shoretirement. B)hoForhothreehoyears. C)hoUntilhothehoclosehoofhothehotaxablehoyearhoforhowhichhoithowashofiled. D)hoUntilhorevoked.ho-hoans--✔✔D)hoUntilhorevoked. 36.hoWhichhoofhothehofollowinghoishoanhoexamplehoofhoanhoindividualhofilinghoahofrivolousho taxhoreturn? A)hoAhotaxpayerhowhohoincorrectlyhoclaimshothehoEarnedhoIncomehoCredithowhenhohehoish onothoeligiblehoforhoithobecausehohehodidhonothoreadhothehoinstructions.
A.hoAhopaidhopreparerhowhohoanticipateshofilingho 11 hoorhomorehoFormsho1120. B.hoAhopaidhopreparerhowhohoanticipateshofilingho 11 hoorhomorehoFormsho1040. C.hoAhopaidhopreparerhowhohoanticipateshofilingho 11 hoorhomorehoFormsho1065. D.hoAllhoofhothehopreparersholistedhoabovehoarehosubjecthotohothehoe-filehomandate.ho- hoans--✔✔B.hoAhopaidhopreparerhowhohoanticipateshofilingho 11 hoorhomorehoFormsho 1040 42.hoWhichhoofhothehofollowinghoactionshoishonothoconsideredho"disreputablehoconduct"hob yhothehoIRS? A.hoWillfullyhofailinghotoe-filehoreturnshoelectronicallyhoifhotheyhofallhounderhothee- filinghomandate. B.hoFailinghotohoincludehoahovalidhoPTINhoonhotaxhoreturns. C.hoPerformancehoashoahonotaryhobyhoahopractitioner. D.hoWillfullyhofailinghotohofilehoahotaxhoreturn.ho-hoans-- ✔✔C.hoPerformancehoashoahonotaryhobyhoahopractitioner. 43.hoRachelhoishoahoCPA.hoShehoishotakinghoanhoaggressivehopositionhoonhoahotaxhoreturn, howhichhorequireshodisclosure.hoWhich formhoishousedhotohodisclosehoahopositionhoonhoahotaxhoreturn? A.hoFormho8275. B.hoFormho8823. C.hoFormho656. D.hoFormho1040X.ho-hoans--✔✔A.hoFormho8275. 44.hoJudith,hoanhoenrolledhoagent,hoprepareshoWilliam'shoincomehotaxhoreturn.hoWilliamho giveshoJudithhopowerhoofhoattorney, includinghothehoauthorizationhotohoreceivehohishofederalhoincomehotaxhorefundhocheck.hoA ccordingly,hothehoIRShosends William'sho$1,000horefundhocheckhotohoJudith'shooffice.hoWilliamhoishoveryhoslowhoinhopayi nghohishobillshoandhooweshoJudithho$ forhotaxhoservices.hoJudithhoshould: A.hoUsehoWilliam'shocheckhoashocollateralhoforhoaholoanhotohotidehoherhooverhountilhoWillia mhopayshoher. B.hoRefusehotohogivehoWilliamhothehocheckhountilhohehopayshoherhotheho$500. C.hoGethoWilliam'showrittenhoauthorizationhotohoendorsehothehocheck,hocashhothehocheck,h oandhoreducehothehoamounthoWilliam oweshoher. D.hoTurnhothehocheckhodirectlyhooverhotohoWilliam.ho-hoans-- ✔✔D.hoTurnhothehocheckhodirectlyhooverhotohoWilliam. 45.hoWhichhoofhothehofollowinghoactionshoishonothoconsideredhopracticehobeforehothehoIRS ? A.hoAppearinghoashoahotaxpayer'showitnesshobeforehothehoIRS. B.hoCorrespondinghowithhothehoIRShoonhobehalfhoofhoahotaxpayer. C.hoCommunicatinghowithhothehoIRShoforhoahotaxpayerhoregardinghothehotaxpayer'shoright s.
D.hoRepresentinghothehotaxpayerhoathoanhoexamination.ho-hoans-- ✔✔A.hoAppearinghoashoahotaxpayer'showitnesshobeforehothehoIRS. 46.hoAhopreparerhoishorequiredhotohoprovidehoahocopyhoofhothehotaxhoreturnhotohoahoclient.h oWhichhoofhothehofollowinghostatementshois nothocorrect? A.hoThehopreparerhomusthoprovidehoahocompletehocopyhoofhothehotaxhoreturnhotohothehotax payer. B.hoAhoscannedhocopyhoofhothehotaxhoreturnhoishosufficienthotohomeethothishorequirement. C.hoThehoIRShorequireshothehoclienthoreceivehoahopaperhocopyhoofhothehotaxhoreturn. D.hoThehoclienthocopyhodoeshonothoneedhotohocontainhothehoSocialhoSecurityhonumberhoofh othehopaidhopreparer.ho-hoans-- ✔✔C.hoThehoIRShorequireshothehoclienthoreceivehoahopaperhocopyhoofhothehotaxhoreturn. 47.hoWhathoishoahoprivateholetterhoruling? A.hoAhoprivateholetterhothathoahotaxpayerhowriteshotohothehoIRShoandhothathobecomeshopub lichooncehoTaxhoCourtholitigationhobegins. B.hoAhoprivateholetterhoissuedhobyhothehoU.S.hoTaxhoCourt. C.hoAhocommunicationhofromhothehoInternalhoRevenuehoServicehoinhoresponsehotohoahotax payer'showrittenhorequesthoforhoguidancehoonhoahoparticularhotaxhoissue. D.hoAhoresponsehofromhoCongresshotohothehoIRShotohoclarifyhoCongressionalhoactionhoonh oahospecifichotaxhoissue.ho-hoans-- ✔✔C.hoAhocommunicationhofromhothehoInternalhoRevenuehoServicehoinhoresponsehotohoah otaxpayer'showrittenhorequesthoforhoguidancehoonhoahoparticularhotaxhoissue. 48.hoCircularho 230 hostateshoahopractitionerhomayhonothowillfully,horecklessly,hoorhothroughh ogrosshoincompetencehosignhoahotax returnhoorhoclaimhoforhorefundhothathothehopractitionerhoknows,hoorhoreasonablyhoshouldho havehoknown,hocontainshoahoposition that: A.hoUnderstateshotheholiabilityhoforhotax. B.hoIshorecklesshoorhohashointentionalhodisregardhoofhoruleshoorhoregulations. C.hoLackshoahoreasonablehobasis. D.hoAllhoofhothehoabove.ho-hoans--✔✔D.hoAllhoofhothehoabove. 49.hoWhathoishothehodollarholimithoforhothehoU.S.hoTaxhoCourthosmallhocasehodivision? A.ho$50,000hoorholess B.ho$50,000hoorhomore C.ho$15,000hoorholess D.ho$100,000hoorholessho-hoans--✔✔A.ho$50,000hoorholess 50.hoWhichhoofhothehofollowinghoishonothoahotypehoofhoTreasuryhoregulation? A.hoLegislativehoregulation. B.hoInterpretativehoregulation. C.hoCongressionalhoregulation.
C.hoAfterhoanhoappealshopetitionhoishofiledhowithhothehoOfficehoofhoProfessionalhoResponsi bility. D.hoNonehoofhothehoabove.hoAhodisbarredhopractitionerhomayhonothopracticehobeforehotheh oIRS,hoexcepthotohorepresenthohimself.ho-hoans-- ✔✔D.hoNonehoofhothehoabove.hoAhodisbarredhopractitionerhomayhonothopracticehobeforehot hehoIRS,hoexcepthotohorepresenthohimself. 55.hoAhothirdhopartyhodesigneehohashothehorighthotohodohowhichhoofhothehofollowinghotasks ? A.hoSignhoahobindinghoagreementhoforhothehotaxpayer. B.hoRespondhotohoIRShonoticeshoabouthomathhoerrors,hooffsets,hoandhoreturnhopreparation . C.hoRepresenthothehotaxpayerhobeforehothehoIRS. D.hoReceivehorefundhochecks.ho-hoans-- ✔✔B.hoRespondhotohoIRShonoticeshoabouthomathhoerrors,hooffsets,hoandhoreturnhoprepar ation. 56.hoIsabelhoishoanhoenrolledhoagent,hoandhoJavierhoishoherhoclient.hoIsabelhodidhoahorevie whoofhoJavier'shopasthotaxhoreturns,hoand noticedhothathoJavierhomissedhoahobighodeductionhoonhohisho 2012 hotaxhoreturn,howashofile dhoonhotimehoonhoMarchho10,ho2013.hoJavier wantshotohoamendhohisho 2012 horeturn,hobecausehothehoamendmenthowillhoresulthoinhoahor efund.hoWhathoishothehodeadlinehofor Javierhotohoamendhohishoreturnhoandhoobtainhoahorefund? A.hoIthoishotooholatehoforhohimhotohoamendhohisho 2012 horeturnhoandhoobtainhoahorefund. B.hoAprilho18,ho 2016 C.hoMarchho10,ho 2016 D.hoAprilho15,ho 2017 ho-hoans--✔✔B.hoAprilho18,ho 2016 57.hoCircularho 230 hoexplicitlyhodefineshoallhoofhothehofollowinghoexceptho_____hoashopracti cehobeforehothehoIRS: A.hoFilinghodocumentshowithhothehoIRS. B.hoRepresentinghoahoclienthoathoahohearinghobeforehothehoIRS. C.hoRenderingholegalhoadvicehoonhoahotaxhoissue. D.hoRenderinghowrittenhoadvicehoconcerninghoahoplanhowithhothehopotentialhoforhotaxhoeva sion.ho-hoans--✔✔C.hoRenderingholegalhoadvicehoonhoahotaxhoissue. 58.hoWhathoishothehopurposehoofhoahoCentralizedhoAuthorizationhoFileho(CAF)honumber? A.hoIthoishoanhoIRShofilehodesignedhotohopreventhothehothefthoofhotaxpayerhoidentificationho numbers. B.hoIthoishoanhoIRShofilehocontaininghothehoPTINshoofhoallhopaidhotaxhopreparers. C.hoIthoishoanhoIRShofilehocontaininghoinformationhofromhoFormsho 2848 hoonly. D.hoIthoishoanhoIRShofilehocontaininghoauthorizationhoinformationhofromhobothhoFormsho 284 8 hoandhoFormsho8821.ho-hoans--
✔✔D.hoIthoishoanhoIRShofilehocontaininghoauthorizationhoinformationhofromhobothhoFormsho 2848 hoandhoFormsho8821. 59.hoWhohoishoallowedhotohodeterminehothehotimehoandhoplacehoforhoanhoaudithoofhoahotax payer? A.hoThehoIRS. B.hoThehotaxpayer. C.hoThehotaxpayer'shorepresentativehoandhothehoIRShohavehoanhoequalhosayhoinhothehodet erminationhoofhothehotimehoandholocation ofhoanhoaudit. D.hoThehoIRS,hothehotaxpayer,hoandhothehotaxpayer'shorepresentativehohavehoanhoequalho sayhoinhodetermininghothehotimehoand locationhoofhoanhoaudit.ho-hoans--✔✔A.hoThehoIRS. 60.hoAhotaxpayerhowouldholikehoassistancehofromhothehoTaxpayerhoAdvocatehoService.hoA llhoofhothehofollowinghoare considerationshoinhodetermininghowhetherhoahorequesthowillhobehogranted,hoexcepthosituat ionshoinhowhich: A.hoThehotaxpayerhowillhosufferhoirreparablehoinjuryhoorhoaholong- termhoadversehoimpacthoifhoreliefhoishonothogranted. B.hoThehotaxpayerhoishofacinghoahosignificanthoandhounexpectedhotaxholiability. C.hoThehotaxpayerhoishoexperiencinghoeconomichoharmhoorhoishoabouthotohosufferhoecono michoharm. D.hoThehotaxpayerhoishofacinghoanhoimmediatehothreathoofhoadversehoaction.ho-hoans-- ✔✔B.hoThehotaxpayerhoishofacinghoahosignificanthoandhounexpectedhotaxholiability. 61.hoPreparershoarehorequiredhotohoexercisehogreaterhoduehodiligencehoinhopreparinghoEar nedhoIncomehoCredithoclaimshofor theirhoclients.hoWhichhoofhothehofollowinghoishonothoahoduehodiligencehorequirement? A.hoSubmittinghoFormho 8867 hotohothehoIRShowithhoeveryhoEITChoclaim. B.hoPersonallyhoansweringhothehoduehodiligencehoquestionshoonhoFormho8867. C.hoSubmittinghothehoEITChoworksheethotohothehoIRShowithhoeveryhoEITChoclaim. D.hoRetaininghodocumentationhoofhothehoquestionshoaskedhoahoclienthoduringhoanhoEITCho interview.ho-hoans-- ✔✔C.hoSubmittinghothehoEITChoworksheethotohothehoIRShowithhoeveryhoEITChoclaim. 62.hoRenatahoishoanhoenrolledhoagent.hoAhoclienthowantshotohousehodirecthodeposit.hoWhic hhoofhothehofollowinghostatementshois incorrect? A.hoRenatahomusthoaccepthoanyhodirecthodeposithoelectionhotohoanyhoeligiblehofinancialhoin stitutionhodesignatedhobyhothehoclient. B.hoThehoclienthomayhodesignatehorefundshoforhodirecthodeposithotohouphotohothreehoqualifi edhoaccounts. C.hoAhotaxpayerhoshouldhonothorequesthoahodeposithoofhohishorefundhotohoanhoaccounthoth athoishonothoinhohishoownhoname.
C.hoShehomusthostillhofulfillhothehooverallhoCPEhorequirementhoofho 72 hohours,hoevenhothou ghhoshehohashoonlyhobeenhoanhoEAhoforhotwo yearshoofhothehoenrollmenthocycle. D.hoForhorenewalhopurposes,hothehoannualhoCPEhorequirementshoonlyhoapplyhoforhothehoy earshoinhowhichhoshehowashoanhoenrolled agent.ho-hoans-- ✔✔D.hoForhorenewalhopurposes,hothehoannualhoCPEhorequirementshoonlyhoapplyhoforhoth ehoyearshoinhowhichhoshehowashoanhoenrolled agent. 67.hoBeforehoahotaxhopreparerhoishoformallyhoassessedhoahopenaltyhounderhoIRChosectionh o6694,hohowhomanyhodayshodoeshohehohave tohofilehoanhoappealhobeforehothehopenaltyhoishoassessed? A.ho 10 hodays. B.ho 30 hodays. C.ho 45 hodays. D.hoThehopenaltyhoishoassessedhoimmediately,hoandhomusthobehoappealedhoretroactively. ho-hoans--✔✔B.ho 30 hodays. 68.hoAllhoofhothehofollowinghoarehooptionshoforhohowhoahotaxpayerhomayhodirecthohishotaxho refundhoexcepthoto: A.hoReceivehothehorefundhoashoahopaperhocheck.ho. B.hoSplithothehorefund,howithhoahoportionhoappliedhotohonexthoyear'shoestimatedhotaxhoandh othehoremainderhoreceivedhoashodirect deposithoorhoahopaperhocheck. C.hoUsehothehorefundhotohopurchasehomunicipalhobonds. D.hoUsehothehorefundho(orhoparthoofhoit)hotohopurchasehoU.S.hoSerieshoIhoSavingshoBonds. ho-hoans--✔✔C.hoUsehothehorefundhotohopurchasehomunicipalhobonds. 69.hoWhichhoofhothehofollowinghodisputeshomayhonothobehoresolvedhobyhoahoproceedinghoi nhothehoU.S.hoTaxhoCourt? A.hoGifthotax. B.hoIncomehotax. C.hoEmploymenthotaxes. D.hoInnocenthospousehorelief.ho-hoans--✔✔C.hoEmploymenthotaxes. 70.hoAnhoIRShopowerhoofhoattorneyhomusthocontainhoallhoofhothehofollowinghoinformationho except: A.hoThehotypehoofhotaxhoinvolved. B.hoThehonamehoandhoaddresshoofhothehorepresentative. C.hoThehonamehoandhotaxpayerhoidentificationhonumberhoofhothehotaxpayer. D.hoThehospecifichodatehothehotaxhoreturnhowashofiled,hoifhodelinquent.ho-hoans-- ✔✔D.hoThehospecifichodatehothehotaxhoreturnhowashofiled,hoifhodelinquent.
71.hoIfhotherehoishosubstantialhounreportedhogrosshoincomeho(overho25%),hothehoIRShomay hoaudithotaxhoreturnshoforhouphoto ____hoafterhothehofilinghodate. A.hoThreehoyears. B.hoFivehoyears. C.hoSixhoyears. D.hoTenhoyears.ho-hoans--✔✔C.hoSixhoyears. 72.hoThehoIRShomusthogivehoahotaxpayerhoreasonablehonoticehobeforehocontactinghothirdh opartieshoinhoconnectionhowith examinationshoorhocollectinghotaxholiability.hoHowever,hothehoIRShoishonothorequiredhotohog ivehonoticehoinhowhichhoofhothe followinghoinstances? A.hoAnyhopendinghocriminalhomatter. B.hoWhenhoprovidinghonoticehowouldhojeopardizehocollectionhoofhoanyhotaxholiability. C.hoWhenhoprovidinghonoticehomayhoresulthoinhoreprisalhoagainsthoanyhoperson. D.hoAllhoofhothehoabove.ho-hoans--✔✔D.hoAllhoofhothehoabove. 73.hoIfhoahopractitionerhouseshoradio,hotelevision,hoInternet,hosignage,hoorhootherhoadvertis inghomethods,howhichhoofhothe followinghostatementshoishocorrect? A.hoThehopractitionerhomusthokeephoahocopyhoofhothehoadvertisinghoforhoahominimumhoofho 30 hodayshoafterhotheholasthotransmissionhoorhouse. B.hoThehopractitionerhomusthokeephoahocopyhoofhothehoadvertisinghountilhothehoendhoofhoth ehocalendarhoyearhofollowinghotheholasthotransmissionhoorhouse. C.hoThehopractitionerhomusthokeephoahocopyhoofhothehoadvertisinghoforhoatholeasthothreeho yearshofollowinghotheholasthotransmissionhoorhouse. D.hoThehopractitionerhoishonothorequiredhotohokeephoahocopyhoofhothehoadvertising.ho- hoans-- ✔✔B.hoThehopractitionerhomusthokeephoahocopyhoofhothehoadvertisinghountilhothehoendhoof hothehocalendarhoyearhofollowinghotheholasthotransmissionhoorhouse. 74.hoWhichhoofhothehofollowinghosanctionshowillhothehoOfficehoofhoProfessionalhoResponsi bilityhonothoimposehoonhoa practitioner? A.hoDisbarment. B.hoCensure. C.hoFormalhoreprimand. D.hoCriminalhopenalties.ho-hoans--✔✔D.hoCriminalhopenalties. 75.hoWhathopenaltyhodoeshoahotaxpayerhowhohofileshoaho"frivolous"horeturnhoface? A.ho$1, 8.ho$5, C.ho$10, D.ho$100,000ho-hoans--✔✔8.ho$5,
D.hoAnhoemployeehoofhoahotaxhopreparationhofirmhowhohocollectshoreceipts,hoorganizeshor ecords,hoandhogathershoinformationhoforhoahopractitioner.ho-hoans-- ✔✔D.hoAnhoemployeehoofhoahotaxhopreparationhofirmhowhohocollectshoreceipts,hoorganize shorecords,hoandhogathershoinformationhoforhoahopractitioner. 80.hoWhichhoofhothehofollowinghostatementshoishocorrecthoregardinghopractitioners? A.hoAhopractitionerhoishoprohibitedhofromhocharginghocontingenthofeeshoinhoallhocases. B.hoAhopractitionerhomayhonothonotarizehodocumentshoforhothehoclientshothathohehoreprese ntshobeforehothehoIRS. C.hoAhopractitionerhomayhonothorepresenthotwohoclientshowhenhotherehoishoahoconflicthoofho interest. D.hoAhopractitionerhoishoforbiddenhofromhodiscussinghotaxhosheltershowithhoahoclient.ho- hoans-- ✔✔B.hoAhopractitionerhomayhonothonotarizehodocumentshoforhothehoclientshothathohehorepr esentshobeforehothehoIRS. 81.hoAhopaidhopreparerhoishorequiredhobyholawhoto: A.hoChargehoahofeehoforhoe-filing. B.hoSignhoahotaxhoreturnhoandhofillhoinhothehopreparerhoareashoofhothehoform. C.hoIncludehohishoSocialhoSecurityhonumberhoonhothehotaxhoreturn. D.hoChargehoahocontingencyhofee.ho-hoans-- ✔✔B.hoSignhoahotaxhoreturnhoandhofillhoinhothehopreparerhoareashoofhothehoform. 82.hoLutherhoishoanhoenrolledhoagenthowhohowashosubjecthotohoahodisbarmenthoproceedin g.hoThehoadministrativeholawhojudge upheldhothehoOPR'shodecisionhotohodisbarhohimhofromhopractice.hoDoeshoLutherhohavehoa nyhoappealhorightshoathothishopoint? A.hoWithinho 60 hodayshoafterhothehoadministrativeholawhojudgehomakeshoahodecisionhoonhoa hodisciplinaryhoaction,hothehopractitionerhomayhoappealhothehodecisionhotohothehoReturnhoP reparerhoOffice. 8.hoWithinho 60 hodayshoafterhothehoadministrativeholawhojudgehomakeshoahodecisionhoonhoa hodisciplinaryhoaction,hothehopractitionerhomayhoappealhothehodecisionhotohothehoTreasuryh oAppellatehoAuthority. C.hoWithinho 30 hodayshoafterhothehoadministrativeholawhojudgehomakeshoahodecisionhoonhoa hodisciplinaryhoaction,hothehopractitionerhomayhoappealhothehodecisionhotohothehoTreasuryh oAppellatehoAuthority. D.hoNo,hoLutherhodoeshonothohavehoanyhoappealhorightshoafterhothehoadministrativeholawho judgehomakeshohishodecision.ho-hoans-- ✔✔C.hoWithinho 30 hodayshoafterhothehoadministrativeholawhojudgehomakeshoahodecisionhoo nhoahodisciplinaryhoaction,hothehopractitionerhomayhoappealhothehodecisionhotohothehoTreas uryhoAppellatehoAuthority. 83.hoSophiehoishoahotaxpayerhowhohoreceiveshoahonoticehoofhodeficiencyhoinhothehomail.ho Shehofailshotohorespondhotohotheholetter
withinho 90 hodays.hoWhathoishoSophie'shooptionhoifhoshehowantshotohocontesthoherhotaxhode ficiency? A.hoShehocanhorequesthoanhoextensionhotohothehoperiodhoofhotimehoforhopetitioninghothehoT axhoCourt. B.hoShehocannothocontesthoherhotaxhodeficiencyhoinhothehoTaxhoCourt.hoShehomusthopayhot hehoamounthoowedhoandhosuehothehoIRShoforhoahorefundhoinhoahoU.S.hodistricthocourthoorho CourthoofhoFederalhoClaims. C.hoShehocannothocontesthoherhotaxhoinhothehoTaxhoCourt.hoShehomusthosuehothehoIRShofo rhoahorefundhoinhoahoU.S.hodistricthocourthoorhoCourthoofhoFederalhoClaims.hoShehodoeshon othohavehotohopayhothehoamounthoowedhofirst. D.hoShehohashonohomorehoappealshorightshoandhomusthopayhoherhotaxhodeficiency.ho- hoans-- ✔✔B.hoShehocannothocontesthoherhotaxhodeficiencyhoinhothehoTaxhoCourt.hoShehomusthop ayhothehoamounthoowedhoandhosuehothehoIRShoforhoahorefundhoinhoahoU.S.hodistricthocourth oorhoCourthoofhoFederalhoClaims. 84.hoSterlinghoishoanhoenrolledhoagent.hoAholong- timehoclienthostartshoahonewhobusinesshoinhoanhoindustryhowithhonumerous specializedhotaxhoregulationshoandhoincentives.hoSterlinghobeginshoworkinghoonhothehoclie nt'shotaxhoreturn,hobuthofindshohehodoes nothounderstandhomosthoofhothehoelectionshoandhocredits.hoCanhoSterlinghopreparehoandho signhothishotaxhoreturn? A.hoYes.hoIthoishonothounusualhoforhoahotaxhopreparerhotoholackhounderstandinghoinhocertai nhocomplexhoareashoofhotaxholaw. 8.hoYes,hobuthoonlyhoifhoSterlinghohashoanotherhomemberhoofhohishofirmhoreviewhothehoretu rnhobeforehoSterlinghosignshoit. C.hoYes,hobuthoonlyhoifhoSterlinghoacceptshoahoreducedhofeehoforhothehoworkhofromhohishocl ient. D.hoNo.hoSterlinghocannothopreparehoorhosignhoahotaxhoreturnhoifhoheholackshosufficienthoco mpetence.ho-hoans-- ✔✔D.hoNo.hoSterlinghocannothopreparehoorhosignhoahotaxhoreturnhoifhoheholackshosufficient hocompetence. 85.hoWhichhoofhothehofollowinghostatementshoregardinghorevenuehorulingshoishoincorrect? A.hoRevenuehorulingshocanhobehousedhotohoavoidhoIRShopenalties. B.hoRevenuehorulingshocannothobehousedhotohoavoidhoIRShopenalties. C.hoAhorevenuehorulinghoishoanhoofficialhointerpretationhobyhothehoIRShoofhothehoInternalho RevenuehoCode. D.hoAhorevenuehorulinghocanhobehochallengedhoinhocourt.ho-hoans-- ✔✔B.hoRevenuehorulingshocannothobehousedhotohoavoidhoIRShopenalties. 86.hoWhathoishothehopenaltyhoahotaxpayerhofaceshoifhohehofailshotohopayhohishotaxeshoonhoti me? A.ho5%hoofhothehounpaidhotaxeshoforhoeachhomonthhoorhoparthoofhoahomonthhoafterhothehod uehodatehothathothehotaxeshoarehonothopaid.
