IRS Software and Tools 2 — Questions and Answers
Question 1: Which IRS tool allows tax professionals to check the status of a client's tax account, including balance due and payment history?
- Transcript Delivery System (TDS)
- IRS e-Services Account Transcript
- Tax Pro Account (Correct answer)
- Integrated Data Retrieval System (IDRS)
Correct answer: Tax Pro Account
Tax Pro Account is an IRS online tool that lets authorized tax professionals view client account information including balance and payment history.
Question 2: A tax preparer wants to electronically submit a request for a client's tax transcript on behalf of the client. Which IRS system should they use?
- IRS2Go
- Transcript Delivery System (TDS) (Correct answer)
- Where's My Refund
- Free File Fillable Forms
Correct answer: Transcript Delivery System (TDS)
The Transcript Delivery System (TDS) is the IRS e-Services tool that allows authorized tax professionals to electronically request and receive tax transcripts.
Question 3: What does the IRS Modernized e-File (MeF) system primarily support?
- Paper return processing and scanning
- Electronic filing of individual and business tax returns (Correct answer)
- Tax payment processing via EFT only
- Identity verification for new taxpayers
Correct answer: Electronic filing of individual and business tax returns
MeF is the IRS platform that processes electronic filing of federal tax returns, supporting both individual and business forms.
Question 4: Which feature of IRS e-Services allows a tax professional to verify that a taxpayer has authorized them to represent the taxpayer?
- CAF Number Lookup
- Centralized Authorization File (CAF) system (Correct answer)
- POA Tracker
- Tax Pro Account Authorization module
Correct answer: Centralized Authorization File (CAF) system
The Centralized Authorization File (CAF) system stores powers of attorney and tax information authorizations, allowing the IRS to verify a professional's authority.
Question 5: When using IRS Direct Pay, which tax form types can individual taxpayers pay for?
- Only Form 1040 balance due
- Individual tax payments, estimated taxes, and certain business taxes (Correct answer)
- Corporate income tax and payroll taxes only
- Excise taxes and estate taxes only
Correct answer: Individual tax payments, estimated taxes, and certain business taxes
IRS Direct Pay supports payments for individual income taxes, estimated tax payments (1040-ES), and several other individual tax obligations.
Question 6: What is the primary purpose of the IRS e-file Signature Authorization form (Form 8879)?
- To authorize the IRS to deposit a refund directly into a bank account
- To authorize an ERO to electronically sign and transmit a return on behalf of a taxpayer (Correct answer)
- To verify the taxpayer's identity before e-filing
- To request an extension for filing electronically
Correct answer: To authorize an ERO to electronically sign and transmit a return on behalf of a taxpayer
Form 8879 is an IRS e-file signature authorization that allows an Electronic Return Originator (ERO) to sign and submit the return for the taxpayer.
Question 7: Which IRS online tool provides taxpayers with a personalized view of their federal tax account, including tax owed, payments, and tax records?
- Get Transcript Online
- Online Account (Correct answer)
- IRS2Go app
- Free File
Correct answer: Online Account
The IRS Online Account gives taxpayers a personalized view of their balance due, payment history, tax records, and the ability to make payments.
IRS Software and Tools 2
Which IRS tool allows tax professionals to check the status of a client's tax account, including balance due and payment history?