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IRS RTRP : Registered Tax Return Preparer Practice Exam

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Exam Number : RTRP
Exam Name : Registered Tax Return Preparer Practice
Vendor Name : IRS
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The Registered Tax Return Preparer Test (RTRP) focuses on the ethical responsibilities of federal tax return preparers and the completion of the Form 1040 series returns including basic related schedules and forms. The test specifications below are intended to provide guidance on the content of the RTRP test. The examples provided within each item are not all inclusive of what may be tested in a given area. All efforts have been made to develop Questions Answers based on general tax rules covered in IRS publications, forms and instructions rather than exceptions found only in the Internal Revenue Code or Income Tax Regulations.

Domain 1 Preliminary Work and Collection of Taxpayer Data
1. Review prior years return for accuracy, comparison, and carryovers for current year return.
2. Collect taxpayers biographical information (e.g., date of birth, age, marital status, citizenship, dependents).
3. Determine filing status.
4. Determine all sources of taxable and non-taxable income (e.g., wages, interest, business, sale of property, dividends, rental income, income from flow-through entities, alimony, government payments, and pension distributions).
5. Determine applicable adjustments to gross income (e.g., self-employed health insurance, self-employment tax, student loan interest deduction, alimony paid, tuition, and fees deduction).
6. Determine standard deduction and Schedule A itemized deductions (e.g., state and local tax, real estate tax, cash contributions, non-cash contributions, unreimbursed employee expense, medical expense, and mortgage interest).
7. Determine applicable credits (e.g., Earned Income Tax Credit, child tax credit, education, retirement savings, dependent and childcare credit).
8. Understand tax payments (e.g., withholding, estimated payments).
9. Recognize items that will affect future returns (e.g., carryovers, depreciation).
10. Determine special filing requirements (e.g., presidentially declared disaster areas).
11. Determine filing requirements (including extensions and amended returns).
12. Understand due dates, including extensions.
13. Determine personal exemptions, including dependents.
14. Determine qualifying child/relative tests for Earned Income Credit.

Domain 2 Treatment of Income and Assets
A. Income
1. Taxability of wages, salaries, tips, and other earnings (e.g., W-2 Wage and Tax Statement, cash).
2. Interest income (taxable and non-taxable) (e.g., Schedule B and 1099-INT).
3. Dividend income (e.g., Schedule B and 1099-DIV).
4. Self-employment income and expenses (e.g., Schedule C Profit or Loss From Business and Form 1099-MISC Miscellaneous Income, cash).
5. Rental income and expenses (e.g., Schedule E Supplemental Income and Loss).
6. Identification of forgiveness of debt as income (including Form 1099-C Cancellation of Debt).
7. Other income (e.g., alimony, barter income, hobby income, non-taxable combat pay, state income tax refund from prior years, prizes).
B. Retirement income
1. Reporting requirements of Social Security benefits (e.g., Form SSA-1099 Social Security Benefit Statement).
2. Taxable distribution from an IRA including basis in an IRA (e.g., Form 8606 Non-deductible IRAs).
3. Distributions from qualified plans (e.g., 401k, IRA, Roth IRA).
4. Required minimum distributions from retirement plans.
C. Property, real and personal
1. Short-term and long-term capital gains and losses (e.g., Schedule D Capital Gains and Losses, Form 1099-B Proceeds from Broker and Barter Exchange Transactions).
2. Determination of basis of assets (e.g., purchased, gifted, or inherited).
3. Sale of non-business assets (gains or losses).
4. Sale of a principal residence (e.g., IRC 121 exclusions, 1099S Proceeds From Real Estate Transactions).
D. Adjustments to income
1. Self-employment tax (e.g., Schedule SE Self-Employment Tax).
2. Tuition and fees (e.g., Form 8917 Tuition and Fees Deduction, Form 1098T Tuition Statement).
3. Eligible Moving expenses (e.g., Form 3903 Moving Expenses).
4. Other adjustments to income (e.g., IRA contribution deduction).

Domain 3 Deductions and Credits
A. Itemized deductions
1. Medical and dental expenses.
2. State, local, and real estate taxes.
3. Mortgage interest expense (e.g., Form 1098 Mortgage Interest Statement).
4. Charitable contributions (e.g., cash, non-cash, Form 8283 Non-Cash Charitable Contributions).
5. Miscellaneous itemized deductions (including deductions subject to 2% AGI Limit).
6. Employee travel, transportation, education, and entertainment expenses (e.g., Form 2106-EZ and Form 2106 Unreimbursed Employee Business Expenses).
B. Credits
1. Child and dependent care credit (e.g., Form 2441 Child and Dependent Care Expenses).
2. Child Tax Credit and Additional Child Tax Credit (e.g., Form 8812, Additional Child Tax Credit).
3. Education credits (e.g., Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits), Form 1098T Tuition Statement).
4. Earned Income Tax Credit (EITC) (e.g., Schedule EIC Earned Income Credit, Form 8867 Paid Preparers Earned Income Credit Checklist).
5. Retirement savings contribution credit (e.g., Form 8880 Credit for Qualified Retirement Savings Contributions).

Domain 4 Other Taxes
1. Alternative Minimum Tax (e.g., Form 6251 Alternative Minimum Tax).
2. Early distributions from retirement plans (e.g., Form 5329 Additional Tax on Qualified Plans).
3. Self-employment tax (e.g., Schedule SE Self-Employment Tax).
4. Unreported Social Security and Medicare tax (e.g., Form 4137 Social Security and Medicare Tax on Unreported Tip Income).
5. Repayment of first-time homebuyer credit (including Form 5405 First-Time Homebuyer Credit and Repayment of the Credit).

Domain 5 Completion of the Filing Process
1. Check return for completeness and accuracy.
2. Explain and review tax return.
3. Explain record-keeping requirements to the taxpayer.
4. Discuss significance of signatures (e.g., joint and several liability, penalty of perjury, Form 8879 IRS e-file Signature Authorization).
5. Understand tax preparer's responsibilities related to rejected electronic returns.
6. Understand timeframe for submitting electronic returns (e.g., Form 8879 taxpayer signature and date prior to submission).
7. Understand payment options (e.g., check, direct debit, EFTPS, credit card, installment agreement-Form 9465).
8. Understand estimated tax payment requirements (e.g., potential for penalties, Form 1040-ES Estimated Tax).
9. Understand refund options (e.g., Form 8888 Allocation of Refund).

Domain 6 Practices and Procedures
1. Penalties to be assessed by the IRS against a preparer for negligent or intentional disregard of rules and regulations, and for a willful understatement of liability (e.g., IRC 6694(a), IRC 6694(b)).
2. Appropriate use of Form 8867 Paid Preparers Earned Income Credit Checklist and related penalty for failure to exercise due diligence (e.g., IRC 6695(g)).
3. Furnishing a copy of a return to a taxpayer (e.g., IRC 6695(a)).
4. Signing returns and furnishing identifying (PTIN) numbers (e.g., IRC 6695(b), IRC 6695(c)).
5. Rules for the return preparer for keeping copies and/or lists of returns prepared (e.g., IRC 6695(d)).
6. Compliance with e-file procedures (e.g., timing of taxpayer signature, timing of filing, recordkeeping, prohibited filing with pay stub).
7. Completion and use of Form 2848 Power of Attorney and Declaration of Representative and Form 8821 Tax Information Authorization.
8. Safeguarding taxpayer information (e.g., Publication 4600 Safeguarding Taxpayer Information, Quick Reference Guide for Business, IRC 7216).

Domain 7 Ethics
Circular 230 Subparts A, B, and C (excluding D, E), covering syllabus including, but not limited to, the following:
1. Preparers due diligence for accuracy of representations made to clients and IRS; reliance on third-party work products (Circular 230, section 10.22).
2. What constitutes practice before the IRS and categories of individuals who may practice (Circular 230, sections 10.2(a)(4) and 10.3).
3. Limits on practice by a registered tax return preparer (Circular 230, section 10.3(f)).
4. Requirement to furnish information to IRS upon request (Circular 230, section 10.20).
5. Prompt disposition of matters before the IRS (Circular 230, section 10.23).
6. Prohibition on receiving assistance from or providing assistance to disciplined practitioners (Circular 230, section 10.24).
7. Rules regarding fees, including contingent fees (Circular 230, section 10.27).
8. Rules in dealing with clients, including return of client records, conflicts of interest, advising on omissions and errors, solicitation (including advertising), and negotiation of taxpayer refund checks (Circular 230, sections 10.21, 10.28, 10.29, 10.30, and 10.31).
9. Due diligence standards with respect to tax returns and other documents; standards for signing, advising positions on returns and advising submissions of other documents; advising on penalties; good faith reliance on client information; reasonable inquiries regarding incomplete, inconsistent, incorrect information (Circular 230, sections 10.34 and 10.35).
10. Responsibility of individual(s) who have principal authority over a firms tax practices (Circular 230, section 10.36).
11. Incompetence and disreputable conduct that can result in disciplinary proceedings (Circular 230, sections 10.51 and 10.52).
12. Sanctions that may be imposed under Circular 230 (Circular 230, sections 10.50 and 10.60).



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IRS Preparer test prep

watch out for these usual tax-season scams | RTRP exam Cram and PDF Dumps

BBB

Tax scams are among the most stubborn cons obtainable. They reappear commonly, each time with a a little diverse spin. The leading theme is scammers posing because the inside salary provider (IRS) within the U.S. or as the Canada revenue agency (CRA) in Canada, making an attempt to trick people into either paying up or sharing personal assistance.

IRS or CRA Impersonation Scams

These scams most frequently beginning with a mobilephone name and take two basic types. in the first version, the IRS or CRA "agent" says you owe returned taxes and pressures you into paying by pay as you go debit card or wire transfer. in case you don’t comply, the scammer threatens you with arrest and fines. in the different version, scammers claim they are issuing tax refunds and ask you for personal assistance so that you can send your refund. This assistance can later be used for identity theft. Scammers also use this strategy to goal faculty students through claiming a "federal pupil tax" has no longer been paid.

These imposters frequently go to top notch lengths to appear actual. The scammer may deliver a pretend badge quantity and identify. Your Caller id might also appear to be the call is coming from Washington, D.C. or Ottawa. Con artists occasionally observe up rip-off calls with an electronic mail, which makes use of the IRS brand, hues, and authentic-sounding language. in many cases, these scams beginning with a major and respectable sounding “robocall” recording.

you are forced to behave promptly. Scammers typically try to push you into motion earlier than you have got time to feel. The IRS and CRA will be able to ask questions or enchantment what you owe. also, their first contact with you'll at all times be by means of mail, no longer telephone or email.  fee must be made via wire switch, prepaid debit card, or other non-typical price strategies. These strategies are mostly untraceable and non-reversible. The IRS and CRA will certainly not demand immediate fee, require a specific form of price, or ask for bank card or debt card numbers over the mobilephone.

within the U.S., the IRS may call you about stunning accounts after attaining out by means of mail. See BBB's information on IRS calls to inform if the IRS is really calling or if you're speaking to a scammer.

Tax identity Theft Scams

one other tax scam to appear out for is tax identity theft. This happens when a scammer uses your government-issued identification quantity (Social protection quantity within the U.S. or Social assurance quantity in Canada) to file a tax return to your identify and collect your refund. it might probably also be someone the usage of your assistance to get a job. buyers don’t always recognize they have been victims of tax id theft until they get a written notice from the IRS or CRA asserting that a couple of tax return turned into filed, or they have been paid by means of an organisation they do not know. learn more about tax identification theft scams.

email Phishing Scams

The emails appear to be from the IRS and include a link to a bogus web web page intended to replicate the reliable IRS internet site. These emails include the route “you're to replace your IRS e-file automatically.” The emails now and again point out u . s ..gov and IRSgov (without a dot between "IRS" and "gov") Don’t get scammed. These emails are not from the IRS.

suggestions to prevent Tax Scams
  • The ideal approach to stay away from tax id theft is to file your taxes as early as possible. File earlier than a scammer has the possibility to use your guidance to file a faux return.
  • within the U.S., jot down your id insurance policy PIN (IP PIN) from the IRS before you file your return. here's a six-digit number, which, besides your Social safety number, confirms your identification. it's vital to observe that you just cannot choose-out when you get an IP PIN. So when you observe, you should provide the IP Pin every 12 months if you happen to file your federal tax returns. The IRS will provide your IP PIN online and then send you a brand new IP PIN each and every December by way of postal mail. visit the IRS for extra assistance about the software. study BBB's suggestions in regards to the IRS PIN. 
  • The IRS doesn't provoke contact with tax payers with the aid of electronic mail, text message or social media to request personal or economic guidance. This contains requests for PIN numbers, passwords or an identical access assistance for credit cards, banks or other monetary debts.
  • only cope with faithful tax instruction features. for many people, fundamental life alterations, company possession, or with no trouble a scarcity of potential in regards to the ever-changing tax laws make discovering a faithful tax preparer a good suggestion. That mentioned, not all tax preparers have the equal level of event and practicing. See their assistance for finding the appropriate tax preparer for you. 
  • take a look at sites carefully and make sure you're having access to the true IRS or CRA web page when filing your taxes electronically or inquiring for additional information.
  • if you're the victim of tax id theft in the U.S., contact the IRS at 1-800-908-4490. make sure you also file a grievance with the Federal trade commission (FTC) at ftc.gov/complaint or through calling 1-877-FTC-assist. The FTC also presents a personalized identification theft restoration plan at identitytheft.gov.
  • if you get tax guidance delivered electronically out of your agency or other entity, treat that assistance carefully. down load it onto a password-covered computing device.
  • when you are a sufferer in Canada, contact your local police carrier. if you agree with your Canadian Social assurance number has been stolen, contact carrier Canada at 1-800-206-7218. For greater tips, see Social assurance number (carrier Canada web site).
  • For greater suggestions

    Some tax preparers present refund advances, which are virtually short-time period loans in the quantity of your anticipated tax return, much less the tax instruction cost. learn more about these loans. 

    To file a tax rip-off, go to BBB scam Tracker. To learn how to guard yourself, go to “10 Steps to keep away from Scams.”

    BBB Serving Metro Atlanta, Athens & Northeast Georgia contributed to this tip.




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    Cabarita Compters Certification Exams on the Tweed Coast

    Local support and service is what cabarita Computers is all about. We offer top notch training of certification exams like cisco, comptia, oracle, hp, ibm and several more. Our team now offers the services of Registered Tax Return Preparer Practice Certification Exam Question Bank with Real exam Questions and Answers of Killexams. People can pass their exams with practice tests and dumps. We support the local Tweed Coast from Kingscliff to Pottsville.  If you have a problem with your PDF or Exam Simulator, only a phone call away. We can fix the problem on site or at your location. The shop is open Monday to Friday 9.00am to 5.00pm and from 9.00am to 12.00pm on saturday.



    Looking nside of our air conditioned shop. With three example system on offer with both Windows Vista and Windows XP installed. You can also try the new Office 2007. Online Gaming is also available as well as full Broadband Internet access on a 5mg link

     INSIDE THE STORE

     
    The idea of a local business is were are here to serve the local community. Our business grows on the reputation of our service. If you are not happy talk to us, if you are happy talk to others. People can pass their exams at first attempt with killexams RTRP dumps.
     
    In our store you will find a selection of items in stock that are ready to go. I believe that you should not have to wait for parts to come in. We should have then ready to go, and this is what we are trying to achieve. Here is an example of some of our stock items.
     
    * IDE & SATA drives from 80G to 160G
    * CPU's  AMD's from Sempron's to MX2 Intel from P4 to core 2 duo
    * Motherboards Gigabyte and Asus
    * Ram 512mb 1G DDR1 and DDR... we also stock Notebook ram DDR1 and DDR2
    * Removable hard drives and one touch backup systems
    * Sound cards, speakers modems and networks cards
    * ADSL modems and routers, network hubs and wirless cards/routers
    * Canon printers and Scanners
    * keyboards and mice
    * Printer ink refills incliuding Dell and Lexmark
    * Accessories and cables
    * software including Killexams Exam Simulator, VCE Practice Test, RTRP question bank, RTRP braindumps.
    * microsoft Windows XP, and XP upgrade, MS Vista Premium and Basic
    *Games PC PS2 Xbox Xbox360 Wii and PS3 are in stock now, and continually rotated, and if we haven't got the game you are after, we can order it in for you.