Podcast
Questions and Answers
If an individual is unable to retake the examination in a subsequent year, would he/ she lose credit for examination parts passed?
If an individual is unable to retake the examination in a subsequent year, would he/ she lose credit for examination parts passed?
True (A)
In the situation where a candidate cannot retake the examination in a subsequent year, does the candidate still have only four years to complete the examination successfully or is the candidate allowed additional years?
In the situation where a candidate cannot retake the examination in a subsequent year, does the candidate still have only four years to complete the examination successfully or is the candidate allowed additional years?
True (A)
May an individual change the district in which he/ she takes the examination from year to year?
May an individual change the district in which he/ she takes the examination from year to year?
True (A)
Would an individual who passed one or more parts of the examination in the first year and again failed the parts he/ she had to take in the second year be able to carry over first year credit?
Would an individual who passed one or more parts of the examination in the first year and again failed the parts he/ she had to take in the second year be able to carry over first year credit?
What if an individual took all four parts of the examination in 1996 and did not pass any of the four parts?
What if an individual took all four parts of the examination in 1996 and did not pass any of the four parts?
May an individual take one part of the examination per year for four years?
May an individual take one part of the examination per year for four years?
How many years may an individual take the examination without passing at least one part?
How many years may an individual take the examination without passing at least one part?
You do not need to study all the IRS publications. They should be used as indispensable references.
You do not need to study all the IRS publications. They should be used as indispensable references.
You are not allowed to bring a calculator into the exam, so you should practice any computational questions by hand.
You are not allowed to bring a calculator into the exam, so you should practice any computational questions by hand.
Pay more attention to the computational questions in Section C first. These questions are worth 3 points each and it is important to finish them first.
Pay more attention to the computational questions in Section C first. These questions are worth 3 points each and it is important to finish them first.
Answer the TRUE/FALSE questions last, because they are worth one point each and you have a 50% chance of picking the right answer.
Answer the TRUE/FALSE questions last, because they are worth one point each and you have a 50% chance of picking the right answer.
Many of the questions on Part 4 can be answered using common sense.
Many of the questions on Part 4 can be answered using common sense.
The IRS likes to ask a few esoteric questions that will not be familiar to you.
The IRS likes to ask a few esoteric questions that will not be familiar to you.
Read the questions carefully, if the question sounds like it makes sense, mark true.
Read the questions carefully, if the question sounds like it makes sense, mark true.
Most of the true questions in Section A are statements right out of the IRS publications, IRC code, or regulations. Make sure you memorize all those true questions.
Most of the true questions in Section A are statements right out of the IRS publications, IRC code, or regulations. Make sure you memorize all those true questions.
On the last five year's exams if you had answered true to every questions on Section A, you would have passed that section of the exam.
On the last five year's exams if you had answered true to every questions on Section A, you would have passed that section of the exam.
Do NOT attempt to learn every specific details of the tax law. You cannot. This course is designed to give you enough tax information to pass all four parts of the exam the first time.
Do NOT attempt to learn every specific details of the tax law. You cannot. This course is designed to give you enough tax information to pass all four parts of the exam the first time.
The passing grade for last five years exams were between 50% to 58%.
The passing grade for last five years exams were between 50% to 58%.
We have prepared you to pass the exam. The rest is on your hands.
We have prepared you to pass the exam. The rest is on your hands.
GOOD LUCK TO YOUR EXAM & BEST WISHES TO YOUR CARRIER AS AN EA.
GOOD LUCK TO YOUR EXAM & BEST WISHES TO YOUR CARRIER AS AN EA.
You may request the SEE Kit by internet: www.irs.gov/pub/irs-fill/f2587.pdf or you may order, free of charge, the IRS publications which provide much of the basic information to assist you in the preparation for the examination
You may request the SEE Kit by internet: www.irs.gov/pub/irs-fill/f2587.pdf or you may order, free of charge, the IRS publications which provide much of the basic information to assist you in the preparation for the examination
In addition, IRS produces most of the information included in the SEE kit electronically on “The Federal Tax Products” CD-ROM (Publication 1796).
In addition, IRS produces most of the information included in the SEE kit electronically on “The Federal Tax Products” CD-ROM (Publication 1796).
Please send me the printed Version of SEE kit Study Material and CD-ROM ROM Publication 1796.
Please send me the printed Version of SEE kit Study Material and CD-ROM ROM Publication 1796.
Please complete the lower portion of this page and mail it to the address listed below. Please print “SEE “ in the lower left front corner of your envelope.
Please complete the lower portion of this page and mail it to the address listed below. Please print “SEE “ in the lower left front corner of your envelope.
Please do not send this form with your application Form 2587.
Please do not send this form with your application Form 2587.
Income is constructively received when it is credited to one's account or set apart in a way that makes it available to the taxpayer.
Income is constructively received when it is credited to one's account or set apart in a way that makes it available to the taxpayer.
Employer contributions to a qualified retirement plan are not income to the employees when the contribution is made.
Employer contributions to a qualified retirement plan are not income to the employees when the contribution is made.
A member of the clergy must also include offerings and fees received for marriages, baptisms, funerals, masses, or any other payment for a service provided.
A member of the clergy must also include offerings and fees received for marriages, baptisms, funerals, masses, or any other payment for a service provided.
Do not include in income the rental value of a home provided to the clergy member.
Do not include in income the rental value of a home provided to the clergy member.
Also exclude a housing allowance paid as part of salary to the extent the allowance was used to provide a home or pay utilities for a home.
Also exclude a housing allowance paid as part of salary to the extent the allowance was used to provide a home or pay utilities for a home.
The amount that can be excluded cannot exceed the fair rental value of the home plus the cost of utilities, regardless of how much is designated as a housing allowance.
The amount that can be excluded cannot exceed the fair rental value of the home plus the cost of utilities, regardless of how much is designated as a housing allowance.
Both the salary and housing are included for determining self-employment tax.
Both the salary and housing are included for determining self-employment tax.
A properly designated housing allowance provided to retired clergy is excluded from income and self-employment tax.
A properly designated housing allowance provided to retired clergy is excluded from income and self-employment tax.
Flashcards
What is gross income?
What is gross income?
All income received in the form of money, property, and services that is not exempt from tax.
How much is the exemption amount for 2001?
How much is the exemption amount for 2001?
The amount you can deduct for each exemption has increased from $2,800 to $2,900.
When is a taxpayer required to file an income tax return?
When is a taxpayer required to file an income tax return?
A taxpayer is required to file if gross income equals or exceeds the sum of one's exemption amount and standard deduction.
How are taxpayers considered married for the whole year?
How are taxpayers considered married for the whole year?
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What is the single filing status?
What is the single filing status?
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What is the married filing separately filing status?
What is the married filing separately filing status?
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What does a taxpayer report on a married filing separately return?
What does a taxpayer report on a married filing separately return?
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What is a limitation of filing married filing separately?
What is a limitation of filing married filing separately?
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What is a dependency exemption?
What is a dependency exemption?
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What is the 'member of household' test for dependency?
What is the 'member of household' test for dependency?
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What is the relationship test for dependency?
What is the relationship test for dependency?
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What is the citizenship test for dependency?
What is the citizenship test for dependency?
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What is the joint return test for dependency?
What is the joint return test for dependency?
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What is the gross income test for dependency?
What is the gross income test for dependency?
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What is the support test for dependency?
What is the support test for dependency?
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When is a taxpayer required to make estimated tax payments?
When is a taxpayer required to make estimated tax payments?
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What is the underpayment penalty?
What is the underpayment penalty?
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What is constructive receipt?
What is constructive receipt?
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What is employee compensation?
What is employee compensation?
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What are fringe benefits?
What are fringe benefits?
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What is a no-additional-cost-service?
What is a no-additional-cost-service?
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What is a qualified employee discount?
What is a qualified employee discount?
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What is a working condition fringe?
What is a working condition fringe?
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What is a de minimis fringe?
What is a de minimis fringe?
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What is unemployment compensation?
What is unemployment compensation?
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What are supplemental unemployment benefits?
What are supplemental unemployment benefits?
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What is clergy income?
What is clergy income?
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What is income from foreign employment?
What is income from foreign employment?
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Study Notes
IRS Enrolled Agent Examination - Study Notes (Part 1)
- Introduction and Tips: The IRS Special Enrollment Examination (SEE) is a yearly exam for those seeking to practice before the IRS (Enrolled Agents). The exam has four parts, all taken in the first year. Candidates get three years to retake failed parts if they achieve a minimum retention score of 90% of the passing score on each.
- Failing ALL Parts: If a candidate fails all four parts by the end of the fourth year, they must start over entirely.
- Passing Three Parts: Candidates who pass three parts their first year only need to retake the failed part, and are not required to reach the minimum retention score.
- Important Dates: Exam applications are available from June 1st and the deadline to submit is July 31st.
- Waivers: Waivers are possible for reasons like serious illness or family death, and each waiver extends eligibility by one year, but there's a six-year limit overall.
- Exam Location Change: Candidates can choose a different district for the exam each year.
- Exam Credit Rollover: Candidates who pass parts in year one retain those credits for retaking failed parts in subsequent years, provided the minimum retention score is achieved.
- Starting Later Than Year 1: For the four-year requirement, it does not start to count down until a candidate has passed at least one part.
- Parts Taken Per Year: Candidates must take all four parts in year one, all failed parts in year two, and so forth, not just one part per year.
- Unlimited Attempts (No Limit): There is no limit on how many times a candidate can fail parts before passing a part of the exam.
Filing Requirements
- Filing Requirements for Individuals: U.S. citizens or residents must file a tax return if their gross income meets or exceeds the combination of their exemption and standard deduction amounts. This applies even if they don't owe any tax.
- Penalty for Failure to File: Penalties exist if a required return is not filed in time.
- Gross Income (Definition): Income received in the form of money, property, or services that isn't exempt.
- Filing Status: Determined at the end of the tax year.
- Age: For filing requirements, age is considered on the day before the 65th birthday.
- Exemption Amount (2001): $2,900
- Gross Income Filing Requirements - Table: Different amounts per filing status and ages, for certain gross income tax threshold.
- Self-Employment Filing: Applicable if gross income or net earnings from self-employment exceeds $400. Different rules for different business types (services, manufacturing, merchandising, mining).
- Special Tax Requirements: Filing may be required even if regular income requirements aren't met. These situations include owing special taxes such as Social Security, Medicare, Alternative Minimum Tax(AMT).
- Dependent Filing Requirements (2001): Detailed table describing dependent filing requirements depending on age, earned, and unearned income.
Filing Status
- Single (S): Unmarried or legally separated.
- Married Filing Jointly (MFJ): Married, and both taxpayers agree to file. Key situations (living together, common law marriage, or marriage termination).
- Married Filing Separately (MFS): Choosing separate filing when married. Limitations (zero standard deduction for one spouse if other itemizes).
- Qualifying Widow(er) with Dependent Child (QW): Two years after the death of a spouse. Requirements (filed joint with the deceased, not remarried, has a qualifying dependent child).
- Head of Household (HH): Unmarried and maintaining a home for a qualifying person. Strict requirements (pays more than half the cost, qualifying person lives, etc.).
- Qualifying Person (HH): Child, grandchild, stepchild, etc. (detailed list).
- Maintaining a Household (HH Test):* Calculating the cost of maintaining the household including rent, mortgage, taxes, insurance, repairs, utilities, food eaten in the home, etc. (excludes clothing, education, vacations, etc.)
Other Topics
- Decedent's Return: The requirements if a taxpayer dies during the tax year.
- Estimated Tax: Requirements for paying taxes in installments throughout the year if expecting to owe over $1000. Exceptions apply (farmers, fishermen). Due months ($1000 tax threshold).
- Underpayment Penalty: Penalty if estimated tax payments aren't enough. Conditions for not owing a penalty (detailed list).
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Description
Prepare effectively for the IRS Special Enrollment Examination with these essential study notes. This resource covers important exam details, including passing criteria, retakes, eligibility waivers, and critical dates. Understand the requirements to ensure your success in becoming an enrolled agent.
