Exam 12: Working With the IRS

A "DIF" score is a type of:

The IRS was established by Congress on July 1, 1862, tomeet the fiscal needs of the Civil War.

Which of the following issues would most typically NOT be handled as a correspondence examination?

There is a general common law privilege of confidentiality for non-criminal tax matters that exists between a taxpayer and his or her tax practitioner.

The procedure used tomatch the information recorded on a return with corresponding data received from third parties is referred toas the:

Generally, the IRS selects returns for examination through the use of mathematical models, including correlations and discriminant functions.

Signed intolaw in 1996, it guarantees taxpayers various rights torepresentation before the IRS. What is it called?

The National Research Program (NRP)provides statistics that are used in the development and update of the DIF formulas.

If a taxpayer and the IRS cannot agree on the proposed adjustments after an appeals conference, the regional director of appeals will issue a:

Jackie filed her 2019 income tax return on February 15, 2020. There was nomaterial understatement of income on her return, and the return was properly signed and filed. The statute of limitations for Jackie's 2019 return expires on:

A written revenue agent's report (RAR)is prepared by the IRS agent and is given tothe taxpayer:

The statute of limitations refers toa:

A taxpayer's appeal must be in written form if the total proposed additional tax and penalties exceed $2,500.

What is the formula that assigns numeric weights tocertain (undisclosed by the IRS)return items, generating a composite score for the return?

A power of attorney is necessary when a qualified representative goes tothe IRS torepresent a taxpayer.

The Chief Counsel is appointed by the President and reports tothe Commissioner of the IRS.

If a return is identified as including an unallowable item, the IRS:

The IRS treats an adjustment in tax resulting from an unallowable item identified in a return as a correction of a mathematical or clerical error.

In cases where an IRS examiner questions only one or twoitems on a selected return, an examination is typically conducted by mail, called a correspondence examination.

The number of routine math errors has increased sharply due toincrease in electronic filing.