Tax Representation and Professionals Quiz

Test your knowledge of tax law with questions about representation, IRS procedures, penalties, and more in this quiz on tax professionals.

Practice Learn Test

What is the role of a tax representative?

To file taxes only

To provide legal representation in tax-related matters

To prepare tax returns

To audit tax returns

Which of the following professionals can represent a taxpayer before the IRS?

Certified Public Accountant (CPA)

Real estate agent

Insurance broker

Financial planner

What is the primary purpose of tax planning?

To minimize tax liability within the boundaries of the law

To evade taxes illegally

To file taxes accurately

To delay tax payments indefinitely

Which of the following is NOT typically a responsibility of a tax professional?

Preparing and filing tax returns

Providing investment advice

Representing clients in IRS audits

Offering tax planning strategies

What is the difference between tax avoidance and tax evasion?

There is no difference

Tax avoidance is legal, while tax evasion is illegal

Tax evasion is encouraged by governments

Tax avoidance is more severe than tax evasion

What is Circular 230?

A tax regulation governing representation standards

A financial reporting standard

A stock market index

A legal document for estate planning

What is the Enrolled Agent (EA) designation?

A certification for tax professionals issued by the AICPA

A designation for individuals who have passed a comprehensive IRS exam

An accreditation for financial planners

A license for real estate agents

What does the acronym 'IRS' stand for?

Internal Revenue Service

International Revenue System

Internal Reporting Standards

Investment Return Service

Which of the following penalties may be imposed for tax evasion?

Community service

Loss of driver's license

Civil fines and imprisonment

Public apology

#10

What does the acronym 'CPA' stand for in the context of tax representation?

Certified Personal Accountant

Certified Public Auditor

Certified Public Accountant

Certified Professional Advisor

#11

When might a taxpayer need to hire a tax attorney?

To file a simple tax return

To represent them in a criminal tax investigation

To provide investment advice

To conduct a real estate transaction

#12

What is the statute of limitations for IRS to audit a tax return?

1 year

3 years

5 years

7 years

#13

What is the purpose of a tax treaty between two countries?

To increase tax rates for businesses

To decrease tax rates for individuals

To prevent double taxation of income

To promote tax evasion

#14

What is the purpose of the Schedule C form in U.S. tax filings?

To report rental income

To report self-employment income and expenses

To claim deductions for medical expenses

To report investment income

#15

What is the purpose of IRS Form 8829?

To claim the Earned Income Credit

To report rental income and expenses

To report capital gains from investments

To report income from gambling winnings