Ethical Responsibilities and Fraud Prevention Flashcards

A CAA notices that the photo in an applicant's passport appears to have been replaced. What is the most appropriate action?

Answer: Do not authenticate the document and decline to issue a Certificate of Accuracy

A CAA must never certify a document it believes is altered or fraudulent.

Which form does a CAA use to certify that it has reviewed and authenticated an applicant's identity documents?

Answer: Form W-7 (COA) Certificate of Accuracy

The Form W-7 (COA) attests that the CAA reviewed original or certified-copy documents.

A client offers a CAA an extra cash payment to submit a W-7 without seeing the original documents. This is best described as:

Answer: A request to violate the acceptance agent agreement

Certifying documents not personally reviewed violates the CAA agreement regardless of payment.

Why must CAAs complete IRS-approved forensic document training?

Answer: To be able to detect fraudulent or altered identity documents

Forensic training equips CAAs to recognize counterfeit and altered documents.

An applicant's name on the passport differs in spelling from the name entered on Form W-7. What should the CAA do?

Answer: Resolve the discrepancy so the W-7 matches the supporting document before submission

Information on the W-7 must be consistent with the identity documents presented.

Which of these is an ethical red flag that may indicate ITIN fraud?

Answer: Many unrelated applicants listing the same U.S. mailing address

Multiple unrelated applicants using one address is a common indicator of fraud schemes.

A CAA's employee is caught falsifying Certificates of Accuracy. Who is ultimately responsible to the IRS?

Answer: The CAA that signed the acceptance agent agreement

The CAA is responsible for the conduct of its staff acting under its agreement.