1. A firm authorized by the IRS to participate in IRS e-file
A.
Submits an e-file application.
B.
Meets the eligibility criteria.
C.
Must pass a suitability check before the IRS assigns an EFIN.
D.
All of the above.
2. Filing state individual income tax returns electronically is
an additional business decision. Federal/State e-file is cooperative tax filing
between the IRS and most of the states that have income taxes. Each
participating state
A.
Adopts the IRS e-file requirements.
B.
Requires that applicants be accepted to participate in IRS e-file before they
accept the applicant to participate in their state electronic filing program.
C.
Has requirements that have to meet the requirements of the IRS.
D.
Has different requirements but if it is a piggy-back state filing an application
with Federal will suffice.
3. Prior to submitting the IRS e-file Application to the IRS,
each individual who is a Principal or Responsible Official must
A.
Register for e-Services on the IRS Web site.
B.
Register as a Responsible Official.
C.
Register as the Principal for a sole proprietorship.
D.
All of the above.
4. This is an individual with authority over the Provider's IRS
e-file operation at a location, is the first of contact with the IRS, and has
authority to sign revised IRS e-file applications. He or she also ensures the
Provider adheres to the provisions of the revenue procedure.
A. The
President.
B.
The Principal.
C.
The Responsible Official.
D.
Any of the above.
5. Each individual who is a Principal or Responsible Official
must
A. Be
a United States citizen or an alien lawfully admitted for permanent residence.
B.
Be 21 years of age as of the date of Application.
C.
Meet applicable state and local licensing and/or bonding requirements for the
preparation and collection of tax returns.
D.
All of the above.
6. The IRS conducts a suitability check on the applicant, and on
all Principals and Responsible Officials listed on e-file applications to
determine the applicant's suitability to be an Authorized IRS e-file Provider.
Suitability checks may include
A. A
criminal background check.
B.
A credit history check.
C. A
tax compliance check to ensure that all required returns are filed and paid, and
to identify assessed penalties.
D.
Any of the above.
7. The IRS reviews each firm or organization, Principal, and
Responsible Official listed on the IRS e-file Application. The following could
be a reason to be denied participation in IRS e-file
A. An
indictment or conviction of any criminal offense under the laws of the United
States or of a state or other political subdivision, or an active IRS criminal
investigation.
B.
Failure to file timely and accurate Federal, state, or local tax returns, or
failure to timely pay tax liabilities.
C.
Stockpiling returns prior to official acceptance to participate in IRS e-file.
D.
Any of the above.
8. Standard 1 applies to Authorized IRS e-file Providers
participating in Online Filing of Individual income tax returns that collect
taxpayer information via the Internet. The providers shall
A.
Possess a valid and current Extended Validation Secure Socket Layer (SSL)
certificate using SSL 3.0/TLS 1.0 or later.
B.
Minimum 1024-bit RSA 128-bit AES.
C.
Both A and B above.
D.
Use windows XP Pro or better.
9. Standard 2 applies to Authorized IRS e-file Providers
participating in Online Filing of individual income tax returns that collect,
transmit, process or store taxpayer information. The following is a true
statement regarding e-file security and Privacy Standard number 2.
A.
Providers shall contract with an independent third-party vendor to run weekly
external network vulnerability scans of all their "system components" in
accordance with the applicable requirements of the Payment Card Industry Data
Security Standard (PCIDSS).
B. All
scans shall be performed by a scanning vendor certified by the Payment Card
Industry Security Standards Council and listed on their current list of Approved
Scanning Vendors (ASV).
C.
Providers whose systems are hosted shall ensure that their host complies with
all applicable requirements of the PCIDSS.
D.
All of the above.
10. "System components" means any network component, server or
application that is included in or connected to the taxpayer date environment.
True
False
11. Standard 3 applies to Authorized IRS e-file Providers
participating in Online Filing of individual income tax returns that own or
operate a Web site through which taxpayer information is collected, transmitted,
processed or stored. In addition, Standard 3 states that Providers shall
A. Be diligent in recognizing and preventing fraud and abuse in IRS e-file.
B. Have
a written information privacy and safeguard policy consistent with the
applicable government and industry guidelines and including the following
statement: "we maintain physical, electronic and procedural safeguards that
comply with applicable law and federal standards".
C.
Implement an effective challenge-response protocol to protect their Web site
against malicious bots.
D. All
of the above.
12. Standard 4 applies to Authorized IRS e-file Providers
participating in Online Filing of individual income tax returns that own or
operate a Web site through which taxpayer information is collected, transmitted,
processed or stored. The Providers shall
A.
Implement an effective challenge-response protocol (e.g., CAPTCHA) to protect
their Web site against malicious bots.
B. Not
collect, transmit, process or store taxpayer information unless the user
successfully completes a challenge-response test.
C.
Continue collecting taxpayer information via their Web site with caution until
the incident is successfully resolved.
D.
Both A and B above.
13. Standard 5, Public Domain Name Registration applies to
Authorized IRS e-file Providers participating in Online Filing of individual
income tax returns that own or operate a Web site through which taxpayer
information is collected, transmitted, processed or stored. These providers
shall
A.
Have their Web site's domain name registered with a domain name registrar that
is located in the United States.
B.
Have a Web site that is accredited by the Internet Corporation for Assisted
Names and Number (ICANN).
C.
Have a domain name that shall be locked and not be private.
D.
All of the above.
14. Standard 6 applies to Authorized IRS e-file Providers
participating in Online Filing of individual income tax returns that collect,
transmit, process, or store taxpayer information. These Providers shall
A.
Report security incidents to the IRS once every month.
B.
Report security incidents to the IRS as soon as possible but not later than the
next business day after confirmation of the incident.
C.
Continue collecting taxpayer information via their Web site cautiously upon
detection of an incident and until the underlying causes of the incident are
successfully resolved.
D. Be
aware that an event can be a result in an unauthorized disclosure, misuse,
modification or destruction of taxpayer information are not considered a
reportable security incident.
15. The following statement is a true statement regarding direct
deposit of refunds.
A. A provider must never charge a separate fee for Direct Deposit and must
accept any Direct Deposit election by a taxpayer to any eligible financial
institution.
B. The taxpayer may never split refunds between different accounts; only one
account may be used for Direct Deposit.
C. Taxpayers often elect the Direct Deposit option because it is the fastest way
of receiving refunds, and it is even faster if the taxpayer designates refunds
for Direct Deposit to credit card accounts.
D.
The provider can alter the Direct Deposit information in the electronic record
after the taxpayers have signed the return if the information was entered
incorrectly.
16. The following is a method of signing individual income tax
returns with an electronic signature available for use by the taxpayers. This
method allows taxpayers to use a personal identification Number (PIN) to sign
the return and the Declaration of Taxpayer.
A. Self-selected PIN which is a method that requires taxpayers to provide their
prior year Adjusted Gross Income (AGI) amount or prior year PIN for use by the
IRS to authenticate the taxpayers.
B. The Practitioner PIN which is a method that doe not require the taxpayer to
provide their prior year AGI amount or prior year PIN, but must appropriately
sign a completed signature authorization form.
C. Both A and B above.
D. None of the above.
17. The ERO must retain Forms 8879 and 8878 for ____________ from
the return due date or the IRS received date, whichever is later and must not
send Forms 8879 and 8878 to the IRS unless the IRS requests they do so.
A. 2 years.
B. 3 years.
C. 4 years.
D. 5 years.
18. EROs must not electronically file individual income tax
returns prior to receiving Forms W-2, W-2G or 1099-R. If the taxpayer is unable
to secure and provide a correct Form W-2, W-2G. The ERO may electronically file
the return after the taxpayer completes Form 4852, in accordance with the use of
that form. If Form 4852 is used,
A. The ERO can submit copies of taxpayer's W-2.
B. The ERO can only paper file the income tax returns for the taxpayer.
C. The non-standard W-2 indicator must be included in the record, and the ERO
must maintain Form 4852 in the same manner required for Forms W-2, W-2G and
1099-R.
D. The ERO can stockpile returns at his office.
19. EROs must retain the following material until the end of the
calendar year at the business, address from which it originated the return or at
a location that allows the ERO to readily access the material as it must be
available at the time of the IRS request. An ERO may retain the required records
at the business address of the Responsible Official or at a location that allows
the Responsible Official to readily access the material during any period of
time the office is closed, as it must be available at the time the IRS request
thought the end of the calendar year.
A. A copy of Form
8453 and supporting documents that are not included in the electronic records
submitted to the IRS.
B. Copies of Form
W-2, W-2G, 1099-R and a copy of signed IRS e-file consent to disclosure forms.
C. A complete copy
of the electronic portion of the return that can be readily and accurately
converted into an electronic transmission that the IRS can process and the
acknowledgement file for the IRS accepted returns.
D. All of the
above.
20. Providers must not use improper or misleading advertising in
relation to IRS e-file, including the time frames for refunds and RALs or other
financial products. A provider must not
A. Advertise that
individual income tax returns may be electronically filed prior to the
Provider's receipt of Form W-2, W-2G and 1099-R, as the Provider is generally
prohibited from electronically filing returns prior to receipt of Form W-2,
W-2G, and 1099-R.
B. Imply that the
Provider does not need Form W-2, W-2G or 1099-R, or that is can use pay stubs or
other documentation of earnings to e-file individual income tax returns.
C. Advertise a RAL
or other financial product that is not easy to identify or in readable print and
must make clear in the advertising that the taxpayer is borrowing against the
anticipated refund or receiving another financial product and is not obtaining
the refund itself from the financial institution.
D. Any of the
above.
