Sample Questions

1. What is the shortest recognized unit of time a program can be to qualify for continuing education credits.

A) 30 minutes

B) 50 continuous minutes

C) One contact hour

D) Both B & C

2. When a prepared return claims the earned income credit, which of the following is NOT true?

A) Due diligence requirements apply.

B) No special requirements apply to returns claiming earned income credit.

C) The preparer may be penalized $100 if no attempt is made to determine eligibility for the credit.

D) The preparer must take additional steps to ensure that a client is eligible for earned income credit.

3. The IRS offers fast track mediation services to help taxpayers resolve disputes resulting in all of the following EXCEPT:

A) Examinations

B) Offers in compromise.

C) Certain collection due process cases.

D) Service Center penalty appeals cases.

4. Which of the following can an individual request records through the Freedom of Information Act?

A) IRS

B) Congress

C) U.S. Supreme Court

D) A state agency

5. Harold, an enrolled agent, must at all times exercise due diligence when doing which of the following?

A) In preparing or assisting in the preparation of, approving, and filing returns, documents, affidavits, and other papers relating to IRS matters.

B) In determining the correctness of oral or written representations made by the enrolled agent to the Department of the Treasury.

C) In determining the correctness of oral or written representations made by the enrolled agent to clients with reference to any matter administered by the IRS.

D) All of the above.

6. If a taxpayer donates a vehicle to a charitable organization and the organization sells the vehicle for more than $500, the organization is required to send the taxpayer Form 1098-C within how many days of the sale?

A) 10 days

B) 30 days

C) 60 days

D) By January 31 of the next year

7. Under Circular 230, an applicant who wishes to challenge the Office of Professional Responsibility's denial of his or her application for enrollment is required to do which of the following?

A) File a written appeal with the Secretary of the Treasury.

B) File a written appeal with the Director of the Office of Professional Responsibility.

C) File a written appeal with the Commissioner of the IRS.

D) Resubmit another application.

8. An enrolled agent may be disbarred or suspended from IRS practice for which of the following conduct:

A) Criminal conviction of an offense under the Internal Revenue Code.

B) Misappropriation of funds received from a client for the purpose of tax payments.

C) Disbarment or suspension from the practice as an attorney, C.P.A, accountant or actuary.

D) All of the above.