CLI Tax Strategies 4

Question 1

Which IRS form does a taxpayer, or someone with the taxpayer's authorization, use to request an exact copy of a previously filed tax return?

Accepted Answer

Form 4506

Answer

Form 4506 requests a photocopy of a filed return, while Form 4506-T requests a transcript.

Question 2

An informant tells an investigator about large-scale tax underpayment by a business. Which form submits a claim to the IRS Whistleblower Office?

Accepted Answer

Form 211

Answer

Form 211 is the Application for Award for Original Information filed with the IRS Whistleblower Office.

Question 3

Under IRC § 7623(b), what award range can a whistleblower receive when the proceeds collected exceed $2 million?

Accepted Answer

15% to 30% of collected proceeds

Answer

Mandatory awards under § 7623(b) range from 15% to 30% of the proceeds the IRS collects.

Question 4

Which IRS return of a tax-exempt organization is publicly available and can show officer compensation and related-party transactions?

Accepted Answer

Form 990

Answer

Exempt organizations must make Form 990 available to the public, which makes it a useful investigative source.

Question 5

A spouse claims they did not know about understated tax on a joint return. Which IRS form requests innocent spouse relief?

Accepted Answer

Form 8857

Answer

Form 8857 is the Request for Innocent Spouse Relief from joint and several liability.

CLI - Certified Legal Investigator Practice Test