Core Concepts and Principles Flashcards
7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Core Concepts and Principles flashcards as text
What is the main difference between a Certifying Acceptance Agent (CAA) and a non-certifying Acceptance Agent (AA)?
Answer: A CAA can authenticate certain identity documents and return the originals to the applicant
A CAA can verify certain original documents and send copies with a Certificate of Accuracy, so the applicant does not have to mail originals to the IRS.
Which form does a CAA use to certify that it reviewed and authenticated an applicant's documents?
Answer: Form W-7 (COA), Certificate of Accuracy
The Certificate of Accuracy (Form W-7 COA) goes with each W-7 a CAA submits and certifies the documents it reviewed.
What does an ITIN NOT do for the person who holds it?
Answer: Authorize the person to work in the United States
ITINs are for federal tax reporting only and do not authorize employment or provide Social Security benefits.
Which single document can prove both identity and foreign status for an ITIN application by itself?
Answer: Valid foreign passport
A valid passport is the only stand-alone document because it proves both identity and foreign status.
What digit does every valid ITIN start with?
Answer: 9
ITINs are nine-digit numbers that begin with 9 and are formatted like an SSN (9XX-XX-XXXX).
Which form does an individual or business use to apply to become an IRS Acceptance Agent?
Answer: Form 13551
Form 13551, Application to Participate in the IRS Acceptance Agent Program, is the application to become an AA or CAA.
In general, how must a Form W-7 be submitted when no exception applies?
Answer: Attached to a valid federal income tax return
Unless an exception applies, the W-7 must be attached to a valid federal tax return that shows why the ITIN is needed.