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CompTIA PDI+ Exam Prep - Question List

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36. To maintain active enrollment to practice before the Internal Revenue Service, each individual enrolled is required to have his or her enrollment renewed. The Office of Professional Responsibility will notify the individual of his or her renewal of enrollment and will issue the individual a card to evidence enrollment. Which of the following statements about renewal of enrollment is correct?
  1. A reasonable refundable fee may be charged for each application for renewal of enrollment filed with the Office of Professional Responsibility.
  2. Failure by an individual to receive notification from the Office of Professional Responsibility of the renewal requirement will not be justification for the failure to timely renew enrollment.
  3. Forms required for renewal may only be obtained from the National Association of Enrolled Agents.
  4. The enrollment cycle is a 3 year period and all Enrolled Agents must renew at the same time, no matter when they first became Enrolled Agents.
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37. Bethany timely filed her 2001 1040 tax return and paid the $2,000 tax as shown on the return at the time of filing. The return was subsequently examined and Bethany signed an agreement form for the proposed changes on August 20, 2003. She paid the additional tax due of $5,000 on September 30, 2003. In 2004, Tiffany located missing records which she believes would make $3,000 of the additional assessment erroneous. Which of the following statements accurately states the date by which Bethany must file a claim for refund to get the $3,000 back?
  1. August 20, 2005, two years from signing the agreement form.
  2. April 15, 2005, three years from the due date of the original return.
  3. September 30, 2005, two years from when the additional tax was paid.
  4. No claim for refund can be filed since an examination agreement form was signed.
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38. In the process of preparing Orlo Corporation’s 2002 return, Dave, an enrolled agent, provided to Orlo Corporation calculations he had prepared computing basis of property that was sold and reported on the 1120 Form 4797. Later, when Orlo Corporation’s 2002 return was examined by the Internal Revenue Service, Orlo Corporation refuses to provide the Internal Revenue Service with the calculations, claiming that this was a privileged communication between Orlo Corporation and its federally authorized practitioner. Which of the following statements is true?
  1. Orlo Corporation does not have to provide the calculations to the Internal Revenue Service because they are privileged under the Federal Tax Practitioner privilege rules.
  2. Orlo Corporation must provide the calculations to the Internal Revenue Service because privilege does not apply to a determination with respect to an item that will be presented to the government on an original return.
  3. Orlo Corporation must provide the calculations to the Internal Revenue Service because the Federal Tax Practitioner privilege does not apply to documents written by Dave because he is not a CPA.
  4. Orlo Corporation does not have to provide the calculations to the Internal Revenue Service if they believe this transaction might be construed as a tax shelter
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39. Disputes involving what areas of taxation may not be resolved in the United States Tax Court?
  1. Income tax
  2. Gift tax
  3. Employment tax
  4. Estate tax
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40. After the issuance of a Statutory Notice of Deficiency, failure to timely file a petition with Tax Court will result in which of the following?
  1. The Internal Revenue Service will issue a 30-day letter
  2. The Internal Revenue Service will assess the tax it says the taxpayer owes
  3. The Internal Revenue Service will issue a 90-day letter.
  4. You will be required to post a deposit before being allowed to request an extension for time to file a petition.
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