CTRS Taxpayer Representation and Advocacy 3

Question 1

A taxpayer in an active installment agreement defaults by missing two payments. What IRS notice will the taxpayer typically receive before the agreement is terminated?

Accepted Answer

CP523

Answer

IRS Notice CP523 informs the taxpayer of an impending installment agreement termination due to default and provides an opportunity to cure.

Question 2

The Taxpayer Advocate Service (TAS) can issue a Taxpayer Assistance Order (TAO) when the taxpayer is experiencing which of the following?

Accepted Answer

Significant hardship resulting from IRS actions or inactions

Answer

TAS can issue a TAO when a taxpayer is suffering or about to suffer significant hardship due to IRS action or inaction under IRC §7811.

Question 3

A practitioner representing a taxpayer in an Offer in Compromise receives a settlement offer from the IRS that the practitioner believes is not in the client's best interest. What should the practitioner do?

Accepted Answer

Present the offer to the client and advise on the pros and cons

Answer

The practitioner must present all settlement offers to the client and provide professional advice, but the client makes the final decision.

Question 4

Under the Taxpayer First Act of 2019, the IRS must provide which new protection before initiating a private debt collection referral?

Accepted Answer

Written notice at least 7 business days before first contact

Answer

The Taxpayer First Act requires the IRS to notify taxpayers at least 7 business days before their account is assigned to a private debt collector.

Question 5

Which practitioner action constitutes a conflict of interest requiring disclosure or withdrawal under Circular 230?

Accepted Answer

Representing a corporation and its sole owner in the same tax dispute

Answer

Representing a corporation and its owner in the same dispute is a conflict because their interests may diverge, especially regarding trust fund recovery penalties.

(CTRS) Certified Tax Resolution Specialist Practice Test

(CTRS) Certified Tax Resolution Specialist Practice Test

CTRS Taxpayer Representation and Advocacy 3