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SCORE: 84%
PASSED
PASSED
1,
Which is a tax reason for an ITIN that does not require a tax return?
Neutral party cash accounting method
Primary reporting of credit card interest
X Third-party reporting of mortgage interest
All of the above
2,
The IRS conducts compliance reviews on ITIN returns.
X TRUE
FALSE
3,
The IRS shares information with the U.S. Citizenship and Immigration Services.
TRUE
X FALSE
4,
Form W-7 and its instructions are printed in both English and Spanish.
X TRUE
FALSE
5,
Taxpayers can meet the residency requirements for tax purposes if they fulfill the substantial presence test.
X TRUE
FALSE
6,
Additional resources are available through MBTO and MBFTO > myTaxResources > ITIN.
X TRUE
FALSE
7,
In order to prove a valid tax reason for the ITIN, a federal tax return must ALWAYS be filed along with the Form W-7 application for the ITIN.
TRUE
X FALSE
8,
Which of the following has the IRS listed as one of the top ten errors related to Form W-7?
The applicant signed the W-7.
X A tax return was not attached, and the Form W-7 did not meet one of the exceptions.
The supporting identification proved the applicant’s identity and foreign status.
All of the above.
9,
Which is an H&R Block recommended method of mailing the ITIN packet?
United States Postal Service Certified Mail.
A private delivery service, such as UPS, with proof of delivery, if original documents are included.
X Either the US Postal Service or a private delivery service, such as UPS, with proof of delivery, if original documents are included.
H&R Block does not have a recommended method of mailing the ITIN packet.
10,
Due diligence requires:
X That you take the time to advise the client regarding all aspects of their income tax return.
A duly executed and authenticated Taxpayer Statement of Understanding.
A signed Publication 2043.
All of the above.
11,
Clients who might need an ITIN include:
Undocumented workers.
Nonresident alien students, professors, or researchers who are required to file a United States Tax return but are not eligible for a SSN.
Alien spouses and dependents of skilled professionals who are eligible to be claimed as an exemption on a tax return.
X All of the above.
12,
Which of the following visa holders would likely be able to obtain an on-campus work authorization?
B-1 (Visitor for Business)
X F-1 (Student Visa)
H-4 (Spouse or Dependent of an H-1 visa holder)
WT (Visitor for Pleasure under the Visa Waiver Program)
13,
Which of the following are requirements of the supporting documentation?
At least one document must contain the applicant’s photograph, unless the documents are submitted for a dependent under age 14 (under age 18 if a student).
All documents must be current.
Two or more documents are needed unless a passport is being submitted.
X All of the above.
14,
Which forms are needed when the client submits the ITIN application directly to the IRS (no CAA process)?
X Form W-7
Form W-7(COA)
Both Form W-7 and Form W-7(COA)
No forms are needed, only supporting documentation
15,
An ITIN can be used to:
Confer status to work in the U.S.
Apply for Social Security benefits.
Provide identification for non-tax purposes.
X None of the above
16,
Maintaining client confidentiality is a high priority.
X TRUE
FALSE
17,
Which combination of supporting documents satisfies the identity and foreign status requirements?
X U.S. Drivers License and Foreign Military Identification Card.
School Records and Medical Records.
U.S. Drivers License and U.S. Military Identification Card.
All of the above.
18,
Which single document can prove both identity and foreign status?
X Passport
U.S. driver’s license
Foreign driver’s license
U.S. Citizenship and Immigration Services (SCIS) photo identification
19,
Which combination of supporting documents satisfies the identity and foreign status requirements?
U.S. State Identification Card and National Identification Card.
U.S. Drivers License and Foreign Voters Registration Card.
United States Citizenship and Immigration Services (USCIS) Photo Identification and Foreign Military Identification Card.
X All of the above.
20,
Which step is used when submitting Form W-7 without a CAA?
The taxpayer provides original documents to the tax preparer to complete Form W-7 and the tax return.
The client mails the ITIN packet to the IRS.
The tax preparer advises the client to bring the ITIN letter of authorization to the tax office once the ITIN is issued. If necessary, the tax preparer should then prepare the state return and any prior year returns not barred by the statute of limitations.
X All of the above.
21,
Which combination of supporting documents satisfies the identity and foreign status requirements?
U.S. Drivers License and United States Citizenship and Immigration Services (USCIS) Photo Identification.
U.S. Military Identification Card and Visa Issued by U.S. Department of State.
U.S. State Identification Card and Foreign Military Identification Card.
X All of the above.
22,
To use medical or school records to establish identity or foreign status, the document must be:
For a dependent.
For a person under age 14 (under 18 if a student).
A foreign medical or school record in order to establish foreign status.
X All of the above.
23,
The IRS created the ITIN program to:
Assist taxpayers with becoming U.S. citizens.
X Help taxpayers comply with U.S. tax obligations.
The IRS did not create the ITIN program.
All of the above.
24,
Which of the following is a way to share your professional knowledge about ITINs to help as many clients as possible?
By conducting thorough interviews with all clients.
By accessing the Tax Talk presentation on the topic of ITINs.
By listing ITIN in your areas of expertise on your Tax Pro Finder Web page.
X All of the above.
25,
Although not one of the documents acceptable to establish identity and foreign status, a marriage license is needed to verify the change of a woman’s last name.
X TRUE
FALSE
26,
An ITIN can be used to:
File a U.S. tax return.
Claim a treaty benefit.
Be claimed as a spouse or dependent on a U.S. tax return.
X All of the above.
27,
The W-7 application can only be submitted by using the United States Postal Service.
TRUE
X FALSE
28,
Helping clients with ITIN applications is a way for H&R Block to grow our client base.
X TRUE
FALSE
29,
Who receives the ITIN Authorization Letter from the IRS when the CAA process is NOT used?
CAA
X ITIN applicant
Both the CAA and the ITIN applicant
CSC – Kansas City
30,
When conducting a thorough interview to determine whether a client should apply for an ITIN, the tax professional should ask additional questions about which of the following?
Resident/nonresident alien status for tax purposes.
Filing status.
Dependency.
X All of the above.
31,
When should Tax Professionals take steps to ensure that they record ITINs correctly?
When entering ITINs or social security numbers from Form W-2.
When applicable, Tax Professionals should ensure that the correct ITIN appears on the tax return.
When entering information on Form W-7, if applicable.
X All of the above.
Note (My Wrong Answer):
Question 2 The IRS conducts compliance reviews on ITIN returns. Your answer: FALSE
Question 17 Which combination of supporting documents satisfies the identity and foreign status requirements?
Your answer: All of the above.
Question 22 To use medical or school records to establish identity or foreign status, the document must be:
Your answer: For a dependent.
Question 24 Which of the following is a way to share your professional knowledge about ITINs to help as many clients as possible?
Your answer: By listing ITIN in your areas of expertise on your Tax Pro Finder Web page.
Question 31 When should Tax Professionals take steps to ensure that they record ITINs correctly?
Your answer: When applicable, Tax Professionals should ensure that the correct ITIN appears on the tax return.