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1. Jane and John filed a joint return in 2015. The IRS has decided to audit this return. The couple has received a letter setting an appointment for the audit
at a local IRS office.
a. What is the title of the IRS employee that is likely conducting the audit?
b. At the end of the audit, the IRS proposes that Jane and John owe additional tax. If the couple wants to challenge this result without heading to court, which IRS office would they need to go to?
c. Jane and John later want the U.S. Tax Court to review their 2015 tax problems. An employee from what office or agency will represent the IRS before the Tax Court?

2. If John suspects that the hospital has done something illegal, what is the title of the IRS employee he should request to speak with?

3. Jane and John feel that the tax laws are unfair and need to be changed. What body is responsible for creating new tax laws or changing existing tax laws?

4. Jane and John feel they were due a refund for 2015, and that the IRS failed to pay them.
a. What agency or office is responsible for issuing refund checks to a taxpayer?
b. If the refund dispute ends up in litigation, an employee from what office or agency will represent the IRS before the court?

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Jean Keeling
Jean KeelingLv2
28 Sep 2019

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Related questions

Volunteer Standards of Conduct Retest Questions

Directions

Using your resource materials, answer the followingquestions:

1

.

Which volunteers must pass the Volunteer Standards of Conduct(VSC) certifica-tion test?

a.Site coordinators/local coordinators

b.Quality reviewers and tax return preparers

c.Greeters or client facilitators

d.All VITA/TCE site volunteers must pass the VSC certificationtest

2.Failure of a VITA/TCE volunteer to comply with the VolunteerStandards of Conduct

could result in which of the following?

a.The volunteer’s removal from the VITA/TCE Programs.

b.Inclusion in the IRS Volunteer Registry to bar future VITA/TCEactivity indefi-nitely.

c.Termination of the sponsoring organization’s partnership withthe IRS.

d.All of the above may be considered an appropriate actiondepending on thetype of violation and the sponsoring partner’scorrective actions.

3.Is having a donation/tip jar at the quality review stationwithin the VITA/TCE site aviolation of the Volunteer Standards ofConduct?

a.Yes

b.No

4.Maggie wants her tax refund quickly; however, she doesn’t havea bank account fordirect deposit. She asks Josh, the taxlaw-certified preparer, to deposit her refund

into his checking account and turn the funds over to her whenreceived.If Josh agrees to do this, has he violated any of theVolunteer Standards of Conduct?

a.Yes

b.No

5.Pat is a paid tax preparer in the community; he also givesback to the communityby serving as an IRS tax law-certifiedvolunteer tax preparer at a VITA/TCE site.While conducting theinterview with the taxpayer, Pat discovers the taxpayer’ssmallbusiness will generate a loss, making the return out of scope forthe VITA/TCE Programs.Pat explains to the taxpayer that the taxreturn cannot be prepared at the VITA/TCE site, but he will offerthe taxpayer a discount at his paid tax

preparation business down the road.Has Pat violated theVolunteer Standards ofConduct (VSC)?

a.Yes, it is a violation of the VSC for Pat to solicit businessfrom any taxpayer at the VITA/TCE site.

b.No, it is not a violation since the return cannot be preparedat the site.

c.No, none of the VSC addresses soliciting business whilevolunteering at the VITA/TCE site.

6.Ann, an IRS tax law-certified tax preparer, told the taxpayerthat cash income does not need to be reported because the IRS willnever know about it.Ann prepared the return without the cashincome.The designated quality reviewer simply missed this omissionand the return was printed, signed, and e-filed. Did the designatedquality reviewer violate the Volunteer Standards of Conduct?

a.Yes

b.No

7.Jan, a greeter, overheard an IRS tax law-certified volunteer,Jim, trying to sellinsurance to a taxpayer he was helping.Jim is aninsurance agent in the commu-nity. Jan feels like Jim was pushy,made the taxpayer uncomfortable, and violated Volunteer Standard ofConduct #3. What should Jan do?

a.Make an announcement to the taxpayers in the waiting room toignore Jim if he tries to sell them insurance.

b.Tell the site coordinator what she heard, so he canimmediately remove Jim from the site and report the incident usingthe external referral process by sending an email [email protected].

c.Mind her own business and do nothing.

8.Explaining the intake/interview and quality review process isimportant so thetaxpayer understands they are expected to:

a.Have a completed Form 13614-C, Intake/Interview & QualityReview Sheet,prior to having the return prepared.

b.Answer the tax preparer’s additional questions during theinterview.

c.Participate in the quality review of their tax return.

d.All of the above

9.During the intake process, which of the following should thevolunteer verify that the taxpayer and spouse, if applicable, havewith them to ensure the taxpayers can be served that day?

a.Photo identification for both

b.Social Security or taxpayer identification number verificationdocuments for everyone listed on the return

c.All tax statement documents, including Forms W-2, 1099-R,etc.

d.All of the above.

10.To ensure quality service and accurate return preparation,every site is required to have a process for assigning taxpayers toIRS tax law-certified preparers who are certified at or above thelevel required to prepare their tax return.

a.True

b.False

Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice’s birthday is September 21, 1969, and Bruce’s is June 27, 1968. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (employer identification number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (employer identification number 11-1111111). The following information is shown on their Wage and Tax Statements (Form W–2) for 2016.

Line Description

Alice Bruce 1 Wages, tips, other compensation $58,000 $62,100

2 Federal income tax withheld 4,500 6,300

3 Social Security wages 58,000 62,100

4 Social Security tax withheld 3,596 3,850

5 Medicare wages and tips 58,000 62,100

6 Medicare tax withheld 841 900

15 State Massachusetts Massachusetts

16 State wages, tips, etc. 58,000 62,100

17 State income tax withheld 2,950 3,100

The Byrds provide over half of the support of their two children, Cynthia (born January 25, 1992, Social Security number 123-45-6788) and John (born February 7, 1996, Social Security number 123-45-6786). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $4,200 from a summer internship in 2016, and John earned $3,800 from a part-time job. During 2016, the Byrds provided 60% of the total support of Bruce’s widower father, Sam Byrd (born March 6, 1940, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam’s life, received life insurance proceeds of $1,600,000 on December 28. The Byrds had the following expenses relating to their personal residence during 2016:

Property taxes $5,000

Qualified interest on home mortgage 8,700 Repairs to roof 5,750

Utilities 4,100

Fire and theft insurance 1,900

The Byrds had the following medical expenses for 2016:

Medical insurance premiums $4,500

Doctor bill for Sam incurred in 2015 and not paid until 2016 7,600

Operation for Sam 8,500

Prescription medicines for Sam 900

Hospital expenses for Sam 3,500

Reimbursement from insurance company, received in 2016 3,600

The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father’s support. Other relevant information follows:

• When they filed their 2015 state return in 2016, the Byrds paid additional state income tax of $900.

• During 2016, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50.

• The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.

• Alice and Bruce made a gift to a needy family who lost their home in a fire ($100). In addition, they made several cash gifts to homeless men downtown ($35).

• In 2016, the Byrds received interest income of $2,750, which was reported on a Form 1099–INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322). The mortgage (outstanding balance of $425,000 as of January 1, 2016) was taken out by the Byrds on May 1, 2012.

• Alice’s employer requires that all employees wear uniforms to work. During 2016, Alice spent $850 on new uniforms and $566 on laundry charges.

• Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association.

• Neither Alice’s nor Bruce’s employer reimburses for employee expenses.

• The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.

• All members of the Byrd family had health care coverage for all months of 2016.

• This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAs.

• Alice and Bruce paid no estimated Federal income tax.

Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign.

Tax Computation:

Compute net tax payable or refund due for Alice and Bruce Byrd for 2016. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your computations, you will need Forms 1040 and 2106 and Schedules A and B.

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