Communication and Documentation Flashcards

A CAA receives a CP566 copy for a client. What is the best next step?

Answer: Contact the client quickly and help send the requested information by the deadline

Prompt, clear communication with the client keeps a suspended application from being rejected.

Before using or disclosing a client's tax return information for purposes outside return preparation, what does a CAA who prepares returns generally need?

Answer: The client's written consent

Section 7216 rules generally require the taxpayer's written consent before return information is used or disclosed for other purposes.

A W-7 applicant's name appears differently on their passport and on the tax return. What should the CAA do?

Answer: Fix the mismatch so the W-7 and return match the identity documents

Mismatched names are a common reason for suspense or rejection, so the names must be made consistent with the documents.

When an ITIN is expiring, what should a CAA tell the client?

Answer: Renew the ITIN by filing a new Form W-7 if the client still has a filing need

ITIN renewals are made on Form W-7 with the renewal box checked and current documentation.

Which statement about how the CAA explains its role to applicants is correct?

Answer: The CAA helps with the application, but only the IRS issues the ITIN

CAAs facilitate and authenticate, but only the IRS ITIN Program assigns ITINs.

What is the best way for a CAA to protect client documents stored electronically?

Answer: Encryption, access controls, and secure storage under IRS safeguarding standards

IRS data security guidance expects reasonable safeguards such as encryption and limited access for taxpayer data.

An applicant applies for an ITIN and also qualifies for a Social Security number. What should the CAA advise?

Answer: Apply for an SSN, because people eligible for an SSN cannot get an ITIN

ITINs are only for people who are not eligible for an SSN.