Answer (2026) | Newest Exam Questions with
Explained Answers and Rationales | Grade
A+
• The IRS (internal revenue code) oversees the execution of the _____. -
✓✓Internal revenue code
• If not an enrolled agent, CPA, or attorney, a paid tax return preparer cannot: -
✓✓-Represent a taxpayer before any of these IRS officers: appeals, revenue,
counsel, or similar officers and employees of the IRS.
-Provide tax advice other than advice necessary to prepare a return, a claim for
refund, or other document intended to be submitted to the IRS.
• What is Circular 230? -✓✓Regulations governing practices before the IRS.
Ethical standards and prohibited conduct. (READ CIRCULAR 230)
• Which form is used as the current base form for individual tax returns? -✓✓Form
1040
• Primary authority for tax issues consists of: -✓✓PRIMARY AUTHORITY:
Descending order of authority
-Internal Revenue Code
-Regulations issued by the Treasury Department.
-Judicial decisions.
SECONDARY AUTHORITY
-Commentaries
-Publications
, -Tax Periodicals
-Common reference material, such as dictionaries and encyclopedias
• What is Publication 17? -✓✓The Federal Income Tax for Individual Tax Guide
• Wage -✓✓Compensation, usually financial, received by workers in exchange for
their work. Included in gross income.
• What is Adjusted Gross Income? -✓✓Adjusted gross income equals total income
less reductions that are allowable, regardless of whether personal deductions are
itemized.
• What are deductions? -✓✓Amounts that may be subtracted from income that is
otherwise taxable.
• What is Earned Income? -✓✓Income from personal services as distinguished
from income generated by property or other sources. Earned income includes all
amounts received as wages, tips, bonuses, other employee compensation, and self-
employment income, whether in the form of money, services, or property.
• What is Federal Income Tax Withheld? -✓✓The amount taken out of income by
the payer and submitted to the IRS as an advance payment of the taxpayer's federal
income tax.
• What is Gross Income? -✓✓Total WORLDWIDE income received in the form of
money, property, or services that is subject to tax.