Representation Penalty and Collection (WBT) (2014) - B (00547012, 2014)

This expert-level course is designed to provide the knowledge to help clients who have received a balance due letter from the IRS, or have been assessed penalties. 
▪ Civil penalties for clients ▪ Paid preparer penalties ▪ Criminal penalties ▪ Penalty abatement and appeals ▪ Collections  ▪ Installment payment agreements ▪ Offers in Compromise ▪ Enforced collection action and appeals

Final Exam
Student: Wang, Kent
SCORE: 87%
PASSED

Question

9

With respect to civil penalties, how much can a paid tax return preparer be penalized for unauthorized release of information furnished for, or in connection with, the preparation of a tax return?

Your answer: $250 per violation.

Question

Which of the following is not required under an IRS procedural rule for paid tax return preparers?

Your answer:

Question

With respect to civil penalties, how much can a paid tax return preparer be penalized for unauthorized release of information furnished for, or in connection with, the preparation of a tax return?

Your answer:

Question

Circular 230 addresses issues of:

Your answer:

Question

How much can a paid tax return preparer be penalized for failure to include their identifying number on the tax returns they prepared?

Your answer:

Question

The trust fund recovery penalty may be assessed against:

Your answer:

Question

Which of the following is a true statement regarding the trust fund recovery penalty?

Your answer:

Question

When representing a taxpayer in a trust fund recovery penalty case, it can be extremely helpful to make a Freedom of Information Act (FOIA) request for the trust fund recovery penalty file to gain information on:

Your answer:

Question

Which of the following is NOT true regarding the trust fund recovery penalty?

Your answer:

Question

If taxpayers Monica, Traci, and Phillip are responsible persons in the failure to withhold and pay over employment taxes, but only Monica and Traci acted willfully, which of the following statements is correct?

Your answer:

Question

Who investigates criminal tax cases?

Your answer:

Question

Why should a taxpayer engage an attorney to represent them in a criminal tax case?

Your answer:

Question

15

"Willful neglect" is:

Your answer: A criminal offense.

Question

Which of the following is NOT true regarding reasonable cause for penalty abatement?

Your answer:

Question

Which of the following is likely to be considered reasonable cause for penalty abatement purposes? Assume no filing extensions.

Your answer:

Question

Penalty abatement is:

Your answer:

Question

An installment agreement is:

Your answer:

Question

19

Which of the following taxpayers would likely be eligible for a collection hold? A taxpayer who:

Your answer: Wants to skip one monthly payment in their installment agreement.

Question

Which of the following actions may the IRS take when a taxpayer on an installment payment agreement fails to file an income tax return in a timely manner?

Your answer:

Question

Why is it good practice to recommend that clients use the Direct Deposit Installment Agreement (DDIA)?

Your answer:

Question

The IRS has the right to revoke an installment agreement for any of the following occurrences EXCEPT:

Your answer:

Question

Which of the following taxpayers is NOT eligible for an offer in compromise? A taxpayer who:

Your answer:

Question

Which of the following is NOT a basis for an offer in compromise?

Your answer:

Question

Which of the following statements regarding offers in compromise is correct?

Your answer:

Question

How should a taxpayer determine an appropriate offer amount for an offer in compromise? The offer amount should be equal to:

Your answer:

Question

What is a Notice of Federal Tax Lien?

Your answer:

Question

Which of the following is the appropriate remedy after the IRS mistakenly files a Notice of Federal Tax Lien against an individual who has no tax liability?

Your answer:

Question

What remedy should a taxpayer seek if their tax liability has been paid in full but a Notice of Federal Tax Lien remains in force?

Your answer:

Question

When does the IRS send a taxpayer a CP 504 notice?

Your answer:

Question

A tax lien:

Your answer:

Question

Why would a taxpayer seek the discharge of a lien?

Your answer:

Question

A tax lien is:

Your answer:

Question

30

Which of the following is true regarding a bank levy?

Your answer: The IRS is not required to give a taxpayer any notice before it levies the taxpayer's bank account.

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Question

2

What is the approximate late filing penalty for filing a return seven months late if the balance due on the return is $7,000?

Your answer: $2,450    

Correct Answer1,750

Question

6

With respect to civil penalties, how much can a paid tax return preparer be penalized for unauthorized release of information furnished for, or in connection with, the preparation of a tax return?

Your answer: $250 per violation.

Question

9

Which of the following is not required under an IRS procedural rule for paid tax return preparers?

Your answer: Keep a copy of the return for at least three years.

Question

7

How much can a paid tax return preparer be penalized for failure to include their identifying number on the tax returns they prepared?

Your answer: Nothing, as long as the taxpayers' identifying numbers appear on all the returns.

Question

10

Which of the following is a true statement regarding the trust fund recovery penalty?

Your answer: If the IRS assesses a trust fund recovery penalty of $1,000 each against two responsible persons, the IRS may collect $1,000 from each responsible person.

Question

13

Why should a taxpayer engage an attorney to represent them in a criminal tax case?

Your answer: Circular 230 instructions.

Question

18

Which of the following taxpayers would likely be eligible for a collection hold? A taxpayer who:

Your answer: Is incapacitated because of a serious accident.

 V Wants to skip one monthly payment in their installment agreement.

Question

24

What remedy should a taxpayer seek if their tax liability has been paid in full but a Notice of Federal Tax Lien remains in force?

Your answer: Certificate of non-attachment.

Question

30

Generally, how long does an IRS wage levy last?

Your answer: One pay period.