Core Concepts and Principles Flashcards
7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Core Concepts and Principles flashcards as text
When will an ITIN expire if it is not used on a federal tax return?
Answer: After 3 consecutive tax years of no use, on December 31 of the third year
An ITIN not used on a federal return for three consecutive tax years expires on December 31 of the third year.
A dependent applicant uses a passport as the only supporting document. What extra requirement usually applies?
Answer: The passport must show a U.S. date of entry, unless an exception applies
A dependent's passport needs a U.S. date of entry unless the dependent is from Canada or Mexico or is a military dependent overseas.
Which document can prove U.S. residency for a dependent under age 6?
Answer: Medical records
Medical records are acceptable only for dependents under age 6.
Which Form W-7 reason box applies to a nonresident alien who needs an ITIN to claim a tax treaty benefit?
Answer: Box a
Box a is for nonresident aliens who need an ITIN to claim a tax treaty benefit.
A client needs an ITIN only to receive a mortgage interest statement (Form 1098) from a U.S. lender. How can the W-7 be filed?
Answer: It can be filed without a tax return under an exception, with proof of the mortgage loan
The mortgage interest exception lets the W-7 be filed without a return if documents show the home mortgage loan.
Which of these individuals generally can NOT get an ITIN?
Answer: A person who has or is eligible to get a Social Security number
ITINs are only for people who do not have, and are not eligible for, an SSN.
How long is an Acceptance Agent agreement with the IRS valid before it must be renewed?
Answer: 4 years
AA and CAA agreements are valid for four years and must be renewed before they expire.