IRS Software and Tools 3 — Questions and Answers
Question 1: A tax preparer receives an acknowledgment code of 'A' after transmitting a return through MeF. What does this mean?
- The return was rejected and must be corrected
- The return was accepted by the IRS (Correct answer)
- The return is pending manual review
- The return requires additional documentation
Correct answer: The return was accepted by the IRS
An acknowledgment code of 'A' in the MeF system means the return has been accepted by the IRS for processing.
Question 2: Which tool in the IRS e-Services suite is used specifically to verify taxpayer identities and prevent fraudulent refunds?
- EFTPS Verification Tool
- Identity Protection PIN (IP PIN) system (Correct answer)
- Secure Access Digital Identity (SADI)
- CAF Number Registry
Correct answer: Identity Protection PIN (IP PIN) system
The IP PIN system assigns a unique six-digit number to taxpayers to prevent identity thieves from filing fraudulent returns using their SSN.
Question 3: What is the maximum dollar threshold for a same-day wire transfer payment to the IRS without additional approval?
- $10,000
- $25,000
- $100,000
- There is no standard threshold; it depends on the financial institution (Correct answer)
Correct answer: There is no standard threshold; it depends on the financial institution
Same-day wire transfer limits depend on the taxpayer's financial institution; the IRS does not set a single universal threshold for this payment method.
Question 4: Which IRS e-Services tool allows Authorized IRS e-file Providers to manage their EFIN (Electronic Filing Identification Number)?
- IRS Tax Pro Account
- e-Services Registration Portal
- e-File Application (Correct answer)
- Secure Object Repository (SOR)
Correct answer: e-File Application
The e-File Application within IRS e-Services is used by providers to apply for, manage, and update their EFIN and associated information.
Question 5: When a return is rejected through MeF with an error code, how long does the taxpayer typically have to correct and resubmit to still be considered timely filed?
- 24 hours
- 5 calendar days (Correct answer)
- 10 business days
- 30 days
Correct answer: 5 calendar days
Taxpayers generally have 5 calendar days after the filing deadline to correct and resubmit a rejected electronic return without penalty.
Question 6: What technology standard does the IRS MeF system use to transmit tax return data between software vendors and the IRS?
- EDI (Electronic Data Interchange)
- XML (Extensible Markup Language) (Correct answer)
- CSV flat file format
- PDF/A archival format
Correct answer: XML (Extensible Markup Language)
MeF uses XML-based schemas to transmit structured tax return data between authorized software providers and the IRS.
Question 7: An ERO discovers they filed a return with an incorrect bank routing number for direct deposit. Which IRS process should be used to correct this before the refund is issued?
- File an amended return (Form 1040-X) immediately
- Contact the IRS e-help Desk and request a refund intercept (Correct answer)
- Resubmit the original return with corrected banking info
- Wait for the refund to be rejected and reissued by paper check
Correct answer: Contact the IRS e-help Desk and request a refund intercept
If an incorrect routing number was used, the ERO or taxpayer should contact the IRS e-help Desk promptly to request a refund intercept before the deposit is processed.
IRS Software and Tools 3
A tax preparer receives an acknowledgment code of 'A' after transmitting a return through MeF.
What does this mean?