CAA CAA Agreement Terms and Fee Disclosure Requirements 2

Question 1

Under the CAA agreement with the IRS, when must a CAA disclose service fees to clients?

Accepted Answer

Before services are rendered

Answer

After the ITIN application is approved

Answer

Within 30 days of filing the application

Answer

Only if the client specifically requests fee information

Question 2

Which of the following actions constitutes a violation of the CAA agreement terms?

Accepted Answer

Implying IRS endorsement or employment in advertising materials

Answer

Charging a fee for certifying ITIN application documents

Answer

Submitting W-7 applications for non-resident aliens

Answer

Retaining certified copies of reviewed documents for 3 years

Question 3

Which category of individuals is a CAA authorized to assist with ITIN applications?

Accepted Answer

Any individual who is ineligible for a Social Security Number and needs an ITIN for tax purposes

Answer

Only U.S. citizens applying for replacement Social Security Numbers

Answer

Only foreign nationals temporarily present in the U.S.

Answer

Only dependent children of U.S. citizens living abroad

Question 4

What action must a CAA take upon discovering an error in a previously submitted ITIN application?

Accepted Answer

Contact the IRS ITIN office to report and correct the error

Answer

File an amended tax return on behalf of the applicant

Answer

Wait for the IRS to independently identify and correct the error

Answer

Ask the applicant to submit a new application without referencing the original

Question 5

A CAA who certifies documents without physically reviewing the originals in person is subject to which consequence?

Accepted Answer

Termination of their CAA agreement and potential penalties

Answer

Additional continuing education requirements only

Answer

Increased application fees for future submissions

Answer

A temporary 90-day suspension of certification privileges

Question 6

Which statement best describes the IRS's authority over existing CAA agreements?

Accepted Answer

The IRS may terminate a CAA agreement at any time for violations of program requirements

Answer

The IRS cannot terminate a CAA agreement once it has been formally approved

Answer

Only a federal court can terminate a CAA's authorization

Answer

CAA agreements automatically terminate after exactly 5 years regardless of compliance

Question 7

What must a CAA do if they permanently cease business operations?

Accepted Answer

Notify the IRS and properly close out their participation in the program

Answer

Automatically transfer their CAA status to another authorized agent

Answer

Complete a Form W-7 for each pending applicant before closing

Answer

Transfer all pending client files directly to the IRS Austin Campus