Ethical Responsibilities and Fraud Prevention 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 Ethical Responsibilities and Fraud Prevention flashcards as text
Which possible IRS action may follow a CAA's repeated failure to follow program requirements?
Answer: Termination of the acceptance agent agreement
The IRS can sanction or terminate CAAs that fail to comply with program requirements.
A CAA wants to use applicant information collected for a W-7 to market unrelated financial products. Without proper consent, this is:
Answer: An improper use of taxpayer information
Taxpayer information may not be used or disclosed for unrelated purposes without consent.
A CAA receives a photocopy of a birth certificate that is not certified by the issuing agency. What should the CAA do?
Answer: Not accept it as a valid document for certification
Only originals or copies certified by the issuing agency may be reviewed and certified.
What is the main ethical purpose of the CAA in-person (or approved) interview with the applicant?
Answer: To confirm the applicant's identity matches the documents presented
The interview helps confirm the person matches the identity documents being certified.
A CAA suspects an applicant is using a stolen identity. Which response best reflects ethical duties?
Answer: Decline to certify and report the suspicion through appropriate IRS channels
CAAs should refuse to certify and report suspected fraud to the IRS appropriately.
Which practice best protects applicant personal data held by a CAA?
Answer: Using a written information security plan with restricted access
A written security plan with access controls is a core safeguard for taxpayer data.
Misrepresenting oneself as an IRS employee while acting as a CAA is:
Answer: Prohibited and grounds for sanctions
CAAs are not IRS employees and may not imply IRS employment or endorsement.