CAA Core Concepts and Principles 5

Question 1

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

Accepted Answer

IRS forensic document training

Answer

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

Question 2

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

Accepted Answer

Box f

Answer

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

Question 3

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

Accepted Answer

The dependent ITIN application is generally denied

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

Every ITIN holder

Answer

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

CAA - Certified Acceptance Agent Practice Test