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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

  1. What training must a CAA finish before it can authenticate documents?

    Answer: IRS forensic document training

    CAAs must complete IRS-mandated forensic document training to authenticate identity documents.

  2. A nonresident alien student on an F-1 visa receives a taxable scholarship. Which W-7 reason box usually applies?

    Answer: Box f

    Box f is for nonresident alien students, professors, or researchers filing a U.S. return or claiming an exception.

  3. A taxpayer wants an ITIN for a dependent but cannot claim any allowable tax benefit for that dependent. What happens?

    Answer: The dependent ITIN application is generally denied

    Dependent ITINs are issued only when the dependent qualifies the taxpayer for an allowable tax benefit.

  4. Which statement about an Acceptance Agent's role is correct?

    Answer: The IRS ITIN Operation makes the final decision; the AA helps prepare and submit the application

    Only the IRS issues ITINs; acceptance agents help applicants and submit their applications.

  5. Which ITIN holder is NOT eligible for the Earned Income Tax Credit?

    Answer: Every ITIN holder

    The EITC requires a valid SSN, so no ITIN holder can claim it.

  6. If a CAA does not follow the terms of its IRS agreement, what can the IRS do?

    Answer: Issue a warning, suspend the CAA, or end its participation in the program

    Sanctions range from warnings to suspension or termination of the acceptance agent agreement.

  7. Under the third-party withholding exception for passive income, what does the applicant usually have to show?

    Answer: Evidence of passive income subject to withholding, such as a withholding agent's letter

    Exception 1 needs documents showing passive income subject to third-party withholding or treaty benefits, such as a letter from the withholding agent.