IRS Tax Compliance and Audit Procedures 2

Question 1

Which IRS document outlines the proposed changes after an audit and gives the taxpayer the right to appeal?

Accepted Answer

30-day letter

Answer

90-day letter

Answer

Revenue Agent Report

Answer

Notice of Deficiency

Question 2

What is another name for the IRS 90-day letter?

Accepted Answer

Statutory Notice of Deficiency

Answer

Revenue Agent Report

Answer

Notice of Levy

Answer

Final Partnership Administrative Adjustment

Question 3

A taxpayer who disagrees with an IRS audit finding can request a conference with which office before going to court?

Accepted Answer

IRS Independent Office of Appeals

Answer

Office of Chief Counsel

Answer

Taxpayer Advocate Service

Answer

Criminal Investigation Division

Question 4

What is the penalty rate for failing to pay tax shown on a return, per month or part of a month?

Accepted Answer

0.5%

Answer

0.25%

Answer

1%

Answer

5%

Question 5

What penalty applies when a taxpayer files a return more than 60 days late?

Accepted Answer

The lesser of $485 or 100% of unpaid tax

Answer

5% per month up to 25%

Answer

0.5% per month up to 25%

Answer

20% of the underpayment

Question 6

Which IRS program allows taxpayers to come forward voluntarily to correct unreported offshore accounts?

Accepted Answer

Streamlined Filing Compliance Procedures

Answer

Offer in Compromise

Answer

Currently Not Collectible status

Answer

Installment Agreement

Question 7

What is the accuracy-related penalty percentage for a substantial understatement of income tax?

Accepted Answer

20%

Answer

10%

Answer

15%

Answer

25%