Part 3

Question 1

Continuing Education

Answer 1

72 hours every 3 years
2 hours of ethics per year
At least 16 hours per year

Question 2

Two types of consent to extend the statute of limitations

Answer 2

Fixed Date
Open-ended

Recommended to use a constricted consent to limit the open items.

Question 3

Time to respond to a notice of proposed deficiency

Answer 3

90 days

150 days if addressed outside of the country

Question 4

Time to allow the IRS to respond before filing a claim with the U.S. district court or US court of federal claims

Answer 4

6 months should be given to the IRS

2 years to file a claim after the original letter of denial

Question 5

The IRS can pursue collection for ___ years from the initial date of assessment

Answer 5

10 years

Question 6

This IRS must release a lien within ___ days after the tax liability is satisfied or bond is accepted

Answer 6

30 Days

Question 7

Taxpayer Bill of Rights

ISPCAFPCRF

Answer 7

Informed
Service
Pay no more than required
Challenge
Appeal
Finality
Privacy
Confidentiality
Representation
Fair and Just

Question 8

Exceptions to 30 day period for levy appeal

Answer 8

Jeopardy
Levy state refund
Disqualified employment tax levy
Federal contractor levy

Question 9

Understatement due to unreasonable positions penalty

Answer 9

Greater of $1,000 or 50% of the income derived

Question 10

Willful or reckless conduct penalty

Answer 10

Greater of $5,000 or 50% of the income derived

Question 11

Failure to furnish a copy to a taxpayer
Failure to sign tax return
Failure to furnish ID number
Failure to retain a copy or list
Failure to file correct informational returns

Answer 11

$50 per occurrence up to $25,000

Question 12

Penalty for endorsing check

Answer 12

$500 per occurrence

Question 13

Penalty for failure to be diligent with EIC credit

Answer 13

$500 per occurrence

Question 14

Penalty for promoting abusive tax shelters

Answer 14

$1,000 per occurrence

Question 15

Penalty for aiding and abetting underpayment of tax

Answer 15

$1,000 per occurrence or $10,000 if a corporation

Question 16

Penalty for unauthorized disclosure

Answer 16

$250 per occurrence up to $10,000 total

Question 17

Penalty for felony of fraud

Answer 17

Up to $100,000 or $500,000 for corporations (per occurrence)

Question 18

Penalty for misdemeanor for fraudulent return

Answer 18

Up to $10,000 or $50,000 for corporations (per occurrence)

Question 19

Penalty for misdemeanor for disclosing information

Answer 19

Up to $1,000

Question 20

Education credits for the first cycle

Answer 20

2 credits per month until the renewal cycle

Question 21

Application fee for OIC

Answer 21

$186
No fee if doubt to liability
Waived of TP is low income