CAA Agreement Terms and Fee Disclosure Requirements 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 CAA Agreement Terms and Fee Disclosure Requirements flashcards as text
Under the CAA agreement with the IRS, when must a CAA disclose service fees to clients?
Answer: Before services are rendered
CAAs are required to disclose all fees to clients before providing any services, ensuring full transparency and protecting applicants from unexpected charges.
Which of the following actions constitutes a violation of the CAA agreement terms?
Answer: Implying IRS endorsement or employment in advertising materials
CAAs are authorized agents, not IRS employees, and may not use language or advertising that implies an official IRS endorsement or employment relationship.
Which category of individuals is a CAA authorized to assist with ITIN applications?
Answer: Any individual who is ineligible for a Social Security Number and needs an ITIN for tax purposes
CAAs may assist any individual who cannot obtain an SSN and requires an ITIN for U.S. federal tax purposes, regardless of nationality or residency status.
What action must a CAA take upon discovering an error in a previously submitted ITIN application?
Answer: Contact the IRS ITIN office to report and correct the error
CAAs have a professional obligation to proactively contact the IRS ITIN office to disclose and correct errors found in previously submitted applications.
A CAA who certifies documents without physically reviewing the originals in person is subject to which consequence?
Answer: Termination of their CAA agreement and potential penalties
In-person review of original documents is a non-negotiable requirement; certifying without doing so is a material violation that can result in agreement termination and penalties.
Which statement best describes the IRS's authority over existing CAA agreements?
Answer: The IRS may terminate a CAA agreement at any time for violations of program requirements
The IRS retains the right to terminate a CAA agreement at any time if the agent violates program requirements, commits fraud, or otherwise fails to meet IRS standards.
What must a CAA do if they permanently cease business operations?
Answer: Notify the IRS and properly close out their participation in the program
CAAs who cease operations must notify the IRS to formally end their participation in the program, ensuring compliance with agreement termination procedures.