CAA Continuing Education Requirements 3 — Questions and Answers
Question 1: Which of the following CAA applicant types is generally required to submit fingerprint cards rather than relying on professional license verification?
- A licensed CPA
- An attorney in good standing
- An Enrolled Agent
- A non-licensed individual such as a financial institution employee (Correct answer)
Correct answer: A non-licensed individual such as a financial institution employee
Individuals without a qualifying professional credential (attorney, CPA, EA) generally must submit fingerprints for the suitability check.
Question 2: An Enrolled Agent who is also a CAA must meet which continuing education requirement to keep EA status?
- 18 hours per year through the AFSP
- 72 hours every three years, with at least 16 hours per year including 2 hours of ethics (Correct answer)
- 24 hours every four years
- No continuing education is required for EAs
Correct answer: 72 hours every three years, with at least 16 hours per year including 2 hours of ethics
Enrolled Agents must complete 72 CE hours per three-year cycle, minimum 16 hours annually, including 2 hours of ethics each year.
Question 3: How long is a standard CAA agreement valid before renewal and updated training are required?
- 1 year
- 2 years
- 4 years (Correct answer)
- Indefinitely
Correct answer: 4 years
CAA agreements are generally valid for four years, after which renewal with current training documentation is required.
Question 4: A CAA firm's existing representative moves to a new firm that is also a CAA. What should happen regarding his training?
- His training transfers automatically and the new firm needs no paperwork
- The new firm must list him on its own application and include his current training certificates (Correct answer)
- He must retake the CPA exam
- He can only act as a CAA after a two-year waiting period
Correct answer: The new firm must list him on its own application and include his current training certificates
Authorized representatives are tied to a specific CAA agreement, so the new firm must add him with current training documentation.
Question 5: Why does the IRS require CAAs to keep their training current rather than completing it once?
- To generate training fees for the IRS
- Because ITIN document standards, procedures, and fraud patterns change over time (Correct answer)
- Because state law requires it
- To convert CAAs into Enrolled Agents
Correct answer: Because ITIN document standards, procedures, and fraud patterns change over time
Updated training keeps CAAs current on changing ITIN procedures and new fraud indicators.
Question 6: Which IRS form is used to apply for or renew participation as an Acceptance Agent, and is where training certificates are attached?
- Form W-7
- Form 13551 (Correct answer)
- Form 8821
- Form 2848
Correct answer: Form 13551
Form 13551 is the Application to Participate in the IRS Acceptance Agent Program, used for both new and renewal applications.
Question 7: A CAA fails to include required training certificates with a renewal application. What is the most likely result?
- The IRS automatically approves the renewal
- The application will be considered incomplete and may be rejected or delayed (Correct answer)
- The CAA is converted to an Acceptance Agent (AA) status
- The IRS waives the requirement for experienced CAAs
Correct answer: The application will be considered incomplete and may be rejected or delayed
Missing training certificates make the application incomplete, leading to rejection or processing delays.
CAA Continuing Education Requirements 3
Which of the following CAA applicant types is generally required to submit fingerprint cards rather than relying on professional license verification?