CTRS CTRS IRS Collections and Enforcement 2

Question 1

Under IRC §6343, the IRS must release a levy if which condition is met?

Accepted Answer

The taxpayer enters into an installment agreement

Answer

The taxpayer files a new tax return

Answer

The taxpayer requests an extension of time to pay

Answer

The taxpayer submits a power of attorney

Question 2

What is the Collection Due Process (CDP) hearing and when must it be requested?

Accepted Answer

An administrative hearing before the IRS Office of Appeals that must be requested within 30 days of the final levy notice

Answer

A tax court proceeding that must be filed within 90 days of an assessment

Answer

An audit reconsideration request filed within 60 days

Answer

A penalty appeal filed within 45 days of assessment

Question 3

What is a 'pyramiding' tax problem in the context of IRS enforcement?

Accepted Answer

A pattern where a business continues to accumulate new payroll tax liabilities while existing ones remain unpaid

Answer

A scheme to hide assets across multiple entities

Answer

A fraudulent transfer of assets to related parties

Answer

A tax shelter that uses multiple pass-through entities

Question 4

Which IRS form is used to request a Collection Due Process hearing?

Accepted Answer

Form 12153

Answer

Form 9465

Answer

Form 433-A

Answer

Form 2848

Question 5

What is the purpose of the IRS's Taxpayer Bill of Rights as it relates to collections?

Accepted Answer

It enumerates 10 fundamental rights taxpayers have when dealing with the IRS, including the right to a fair and just tax system

Answer

It automatically stops all IRS collection actions upon filing

Answer

It guarantees taxpayers a refund of all penalties assessed

Answer

It requires the IRS to accept all Offers in Compromise

Question 6

When can the IRS issue a jeopardy levy without providing the standard 30-day advance notice?

Accepted Answer

When the IRS believes collection is in jeopardy because the taxpayer is placing assets beyond reach or leaving the country

Answer

When the taxpayer has filed multiple tax returns late

Answer

When the taxpayer owes more than $100,000

Answer

When the taxpayer has not responded to an audit notice