79. Which of the following statements is correct with respect to the limited practice of an unenrolled return preparer?
A. An unenrolled return preparer may represent the taxpayer for any year the taxpayer provides authorization, whether or not the unenrolled preparer prepared the return in question.
B. An unenrolled return preparer is only per- mitted to represent taxpayers before the exam- ination and collection functions of the IRS. C. If authorized by the taxpayer, an unenrolled
return preparer can sign consents to extend the statutory period for assessment or col- lection of tax.
D. An unenrolled preparer cannot receive refund checks.
ANSWER: D
An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or reg- ulations) to sign the return.
An unenrolled return preparer is permitted to appear as a taxpayer's representative only before customer service representatives, revenue agents, and exam- ination officers, with respect to an examination regard- ing the return he or she prepared.
An unenrolled return preparer cannot:
1. Represent a taxpayer before other offices of the IRS, such as Collection or Appeals. This includes the Automated Collection System (ACS) unit. 2. Execute closing agreements.
3. Extend the statutory period for tax assessments or collection of tax.
4. Execute waivers.
5. Execute claims for refund. 6. Receive refund checks.
80. With respect to unenrolled return preparers, which of the following statements is correct?
A. An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, or enrolled actuary who prepares and signs a taxpayer’s return as the preparer, or who pre- pares a return but is not required (by the instructions to the return or regulations) to sign the return.
B. An unenrolled return preparer is only per- mitted to appear as a taxpayers’ representative before a Customer Service Representative of the IRS.
C. An unenrolled preparer may receive refund checks on behalf of the taxpayer if Form 8821 has been executed.
D. An unenrolled preparer is permitted to rep- resent a taxpayer over the telephone with the Automated Collection System unit.
ANSWER: A
Chapter 1. Tax Practices and Procedures
81. Which of the following statements is correct with respect to the limited practice of an unenrolled return preparer?
A. An unenrolled return preparer may represent the taxpayer, before certain types of IRS per- sonnel, with respect to an examination regard- ing the return that he or she prepared.
B. An unenrolled return preparer is permitted to appear as a taxpayers’ representative before any function of the IRS as long as he or she pre- pared the return.
C. If authorized by the taxpayer, an unenrolled return preparer can sign consents to extend the statutory period for assessment or col- lection of tax.
D. An unenrolled preparer may receive a refund check on behalf of the taxpayer if permission has been granted to the unenrolled preparer with a Form 8821.
ANSWER: A
An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or reg- ulations) to sign the return.
An unenrolled return preparer is permitted to appear as your representative only before customer service representatives, revenue agents, and examination officers, with respect to an examination regarding the return he or she prepared.
An unenrolled return preparer cannot:
1. Represent a taxpayer before other offices of the IRS, such as Collection or Appeals. This includes the Automated Collection System (ACS) unit. 2. Execute closing agreements.
3. Extend the statutory period for tax assessments or collection of tax.
4. Execute waivers.
5. Execute claims for refund. 6. Receive refund checks.
82. An unenrolled practitioner prepares and signs a client's 2013 tax return. The IRS begins an exam- ination of the client's 2012 and 2013 tax returns. The practitioner has a power of attorney to represent the client for 2012 and 2013. Under Circular 230, the prac- titioner is permitted to represent the client during the examination with regard to its
A. 2012 tax return only. B. 2013 tax return only. C. 2012 and 2013 tax returns. D. None of the above.
ANSWER: B
An unenrolled tax preparer that prepared and signed the tax return is permitted to represent the taxpayer for the year or period covered by the return that she prepared.
83. Which of the following persons are authorized to represent a taxpayer before the IRS?
A. An individual representing a member of his or her immediate family.
B. A regular full-time employee of an individual employer representing the employer. C. An officer or full-time employee of a cor-
poration representing the corporation. D. All of the above.
ANSWER: D
Because of their special relationship with a taxpayer, the following unenrolled individuals can represent the specific taxpayers before the IRS.
1. An individual. An individual can represent himself or herself before the IRS.
2. A family member. An individual family member can represent members of his or her immediate family. Family members include a spouse, child, parent, brother, sister of the individual.
3. An officer. A bona fide officer of a corporation (including parents, subsidiaries, or affiliated cor- porations), associations, organized groups, or in the course of his or her official duties, an officer of a governmental unit, agency, or authority can rep- resent the organization he or she is an officer of before the IRS.
4. A general partner. A general partner can rep- resent the partnership before the IRS. A limited partner cannot.
5. An employee. A regular full- time employee can represent his or her employer. An employer can be an individual, partnership, corporation, asso- ciation, trust, receivership, guardianship, estate, organized group, governmental unit, or authority. 6. A fiduciary. A trustee, receiver, guardian, per- sonal representative, administrator or executor can represent the trust, receivership, guard- ianship, or estate.
84. All of the following individuals are eligible to prac- tice (on a limited basis) before the IRS EXCEPT:
A. A regular full-time employee of an individual may represent the employer.
B. A bona fide officer of a corporation may rep- resent the corporation.
C. A limited partner in a partnership may rep- resent the partnership.
D. A trustee of a trust may represent the trust.
ANSWER: C
A general partner can represent the partnership before the IRS but a limited partner cannot.