Sample Questions
Question 1
Easy
An Authorized IRS e-file Provider that moves its office to a new address must:
Solution
D is correct. Providers must submit updates to their IRS e-file Application through e-Services within 30 days of a change of any information, including addresses, telephone numbers, Principals and Responsible Officials (Pub 3112, Keeping Your IRS e-file Application Up to Date; Rev. Proc. 2007-40). A change to IRS tax records, such as one made on Form 8822-B, does not update the e-file Application, and an update to the application does not change IRS tax records. The IRS can inactivate an EFIN when mail is undeliverable or it cannot contact the Provider, and a Provider that does not keep its application current can be sanctioned.
Question 2
Medium
Which of the following describes the purpose of Form 9325?
Solution
A is correct. Form 9325, Acknowledgement and General Information for Taxpayers Who File Returns Electronically, is the written acknowledgement an ERO may give the taxpayer after the IRS accepts the e-filed return. It records the Submission ID and the acceptance date and gives general information, such as how to check refund status. This gives the taxpayer a record that the IRS received and accepted the return. Using Form 9325 is optional; an ERO may give the taxpayer the acceptance information by other means. See Pub. 1345 and Form 9325.
Question 3
Hard
An ERO using the Practitioner PIN method is also the paid preparer of the Form 1040 being electronically transmitted. Which of the following accurately describes the ERO/preparer's signature requirements on Form 8879?
Solution
C is correct.
Form 8879 contains three signature lines and no paid preparer section: the taxpayer's and spouse's in Part II, and the ERO's in Part III. When the same individual is both ERO and paid preparer, that individual signs only the ERO line on Form 8879.
The paid preparer role is documented on the return itself, not on Form 8879. Publication 1345 requires the ERO to enter the return preparer's identifying information (name, address, EIN, and PTIN) in the electronic return, and the preparer's signature appears in the Paid Preparer Use Only section of the transmitted Form 1040.
Note also that Part III is completed only under the Practitioner PIN method, which is why the stem specifies it. Under the alternative path, where the ERO is authorized to enter the taxpayer's PIN, only Parts I and II are completed.
Form 8879 contains three signature lines and no paid preparer section: the taxpayer's and spouse's in Part II, and the ERO's in Part III. When the same individual is both ERO and paid preparer, that individual signs only the ERO line on Form 8879.
The paid preparer role is documented on the return itself, not on Form 8879. Publication 1345 requires the ERO to enter the return preparer's identifying information (name, address, EIN, and PTIN) in the electronic return, and the preparer's signature appears in the Paid Preparer Use Only section of the transmitted Form 1040.
Note also that Part III is completed only under the Practitioner PIN method, which is why the stem specifies it. Under the alternative path, where the ERO is authorized to enter the taxpayer's PIN, only Parts I and II are completed.
