Free IRS Enrolled Agent SEE Part 1 (Individuals) Preliminary Work and Taxpayer Data Practice Questions
Preliminary Work and Taxpayer Data on the IRS SEE Part 1 covers identification verification, prior-year return review, filing requirements and status determination, dependency tests, and the information-gathering process the preparer performs before drafting Form 1040.
Sample Questions
Question 1
Easy
Which statement most accurately describes the Identity Protection PIN (IP PIN) issued by the IRS?
Solution
IRC §6109 and the IRS Identity Protection PIN program (Pub 17 and the Get an IP PIN portal) describe the IP PIN as a six-digit number known only to the taxpayer and the IRS. When entered on the federal return, it allows the IRS to confirm the filer's identity and block returns filed by an identity thief using the taxpayer's Social Security number.
Question 2
Medium
For purposes of computing the Premium Tax Credit on Form 8962, which figure is used as the taxpayer's household income?
Solution
Under IRC §36B(d)(2) and Treas. Reg. §1.36B-1(e), household income for the PTC equals the taxpayer's modified AGI (AGI plus tax-exempt interest, the nontaxable portion of Social Security benefits, and excluded foreign earned income) increased by the modified AGI of each member of the family who is required to file a federal return. Dependents who file only to claim a refund are excluded. See Form 8962 instructions.
Question 3
Hard
For the 2025 tax year, Marisela is single, age 40, has compensation of $160,000, and has modified adjusted gross income of $160,000. She is not a participant in any employer retirement plan and is not eligible to be claimed as a dependent. What is the maximum amount she may contribute to a Roth IRA for 2025?
Solution
Under IRC §408A(c)(3), a single filer's Roth IRA contribution limit phases out ratably for 2025 between $150,000 and $165,000 of modified AGI. Marisela's MAGI of $160,000 falls inside the $15,000 phase-out range. The reduction fraction is Applying the Pub 590-A Worksheet 2-2: reduction = ; reduced limit = ; rounded up to the next multiple of $10 = $2,340. The minimum-floor rule of $200 does not apply because the reduced limit exceeds $200.