Study Guide: Federal Income Tax: Individuals Test #1

23.3.2 Before the initial in person interview between the IRS and taxpayer to determine or collect any taxes, a taxpayer should receive which one of the following publications from the IRS? A. Publication 594, The IRS collection process B. Publication 5, Your Appeal Rights and How to Prepare a Protest if you Don't Agree C. Form 2848, Power of Attorney and Declaration of Representative D. Publication 1, Your rights as a taxpayer

A. Publication 594, The IRS collection process

24.4.2 All of the following statements concerning the IRS CAF number are true except A. The CAF number entitles the person to whom it is assigned to practice before any office of the IRS except a regional appeals office B. The CAF number allows IRS personnel to identify representatives and the scope of their authority and Will automatically direct copies of notices and correspondence to the person authorized by the taxpayer C. A CAF number is a unique number that will be assigned to any person who files with the Service as power of attorney and a written declaration that she is currently qualified to practice before the IRS and is authorized too represent the particular party on whose behalf she acts. D. A CAF number is unique number that will be assigned to any person who files with the IRS a tax information authorization.

A. The CAF number entitles the person to whom it is assigned to practice before any office of the IRS except a regional appeals office

23.3.3 An interview with the IRS must be suspended immediately if the taxpayer indicates a desire to consult with a representative A. True B. False

A. True

23.3.5 Generally, a return is examined in the IRS district where the taxpayer lives. But if the return can be examined more quickly and conveniently in another district, such as where the books and records are located, the taxpayer can ask to have the case transferred. A. True B. False

A. True

23.3.6 Taxpayers or their authorized representatives may request a conference with the examining agent's supervisor if they are not in agreement with changes proposed by examining agency as part of an office examination. A. True B. False

A. True

23.3.8 In any case in which a recognized representative is unable or unwilling to declare his or her own knowledge that the facts are due and correct, the IRS may require the taxpayer to make such a declaration under penalty of perjury. A. True B. False

A. True

23.3.9 If the IRS has selected your return for examination, you may make an audio recording of the exam interview if you follow certain procedures prescribed by the IRS? A. True B. False

A. True

23.3.1 All of the follow reasons are acceptable for transferring an examination from one IRS district to another except A. The place of examination is solely for the convenience of the taxpayers representative B. Books and records are located in another district C. The place of examination is for the convenience of the Internal Revenue Service D. The taxpayers residence has changed since the return was filed

B. Books and Records are located in another district

23.3.10 The IRS can require the taxpayer to accompany a representative to an interview without issuing a summons. A. True B. False

B. False

23.3.4 Jack and Jill Hill's return was selected for examination in Year 1. There was no change to the one issue examined--Medical expense. In Year 2, the Hills received a notice that their return was selected for examination and the issues were exemptions and contributions. Because they received a no-change in Year 1, they should contact the IRS to see if the examination should be discontinued in Year 2. A. True B. False

B. False

23.3.7 Mr. B owed an additional $5,000 tax as a result of the examination of his federal income tax return. The IRS gave this information, under an exchange agreement, to the state in which Mr.B lives. The IRS has violated Mr. B's right to privacy and may be sued for damages. A. True B. False

B. False

23.4.1 All of the following statements with respect to the IRS centralized authorization file (CAF) are true except A. The issuance of a CAF number does not indicate that a person is recognized or authorized to practice before the IRS B. Information from both powers of attorney and tax information authorizations is recorded onto the CAF system C. A tax information authorization or power of attorney will be rejected based on the absence of the CAF number D. Only documents that concern a matter relating to a specific tax period that ends jo later than 3 years after the date a power of attorney is received by the IRS will be recorded onto the CAF system

C. A tax information authorization or power of attorney will be rejected based on the absence of the CAF number