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

IRC §6343 requires the IRS to release a levy when, among other conditions, the taxpayer enters into an installment agreement that prohibits levying during its term.

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 CDP hearing is an administrative proceeding before the IRS Office of Appeals that taxpayers may request within 30 days of receiving a Final Notice of Intent to Levy.

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

Pyramiding occurs when a business consistently fails to deposit payroll taxes and continues to incur new liabilities, causing the debt to grow rapidly.

Question 4

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

Accepted Answer

Form 12153

Answer

Form 12153 (Request for a Collection Due Process or Equivalent Hearing) is used to formally request a CDP or Equivalent hearing with the IRS Office of Appeals.

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

The Taxpayer Bill of Rights (TBOR), codified in IRC §7803(a)(3), identifies 10 fundamental rights that apply throughout the collection process.

(CTRS) Certified Tax Resolution Specialist Practice Test

(CTRS) Certified Tax Resolution Specialist Practice Test

CTRS CTRS IRS Collections and Enforcement 2