Webinar Review: “don’t Have A Seizure” Protecting Your Clients From The IRS Collection Division
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- 1.
If a letter 1058 Final Notice of Intent to Levy is received how long do you have to appeal the intended levy?
- A.
60 days
- B.
30 days
- C.
21 days
- D.
10 days
Correct Answer
B. 30 daysExplanation
Answer B – 30 days
In order to appeal the levy and request a hearing you must do so in 30 days.Rate this question:
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- 2.
What is the length of the statutory period for collection of debt owed to the IRS?
- A.
7 years
- B.
6 years
- C.
12 years
- D.
10 years
Correct Answer
D. 10 yearsExplanation
Answer D – 10 years
The Revenue Reconciliation Act of 1990 extended the Statute of Limitations for collection to ten years.Rate this question:
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- 3.
The IRS can seize property it has a lien on by?
- A.
Taking the taxpayer to court
- B.
Having a judgment entered
- C.
Taking possession of the property
- D.
Having a levy issued by the sheriff’s department to seize and sell the assets
Correct Answer
C. Taking possession of the propertyExplanation
Answer C - Taking possession of the property
Because the IRS has a lien on a delinquent taxpayer’s property, it may take that property to satisfy taxes. The IRS can, administratively, take actions that any other creditor could take only after extensive court litigation.Rate this question:
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- 4.
A Levy of funds from an employer-sponsored retirement plan or IRA account will have what effect on the taxpayer?
- A.
Taxpayer will pay income tax and the 10% early distribution penalty on the amount levied
- B.
No tax due by taxpayer
- C.
Taxpayer will pay only the 10% penalty
- D.
Taxpayer will pay only the income tax on the amount levied
Correct Answer
D. Taxpayer will pay only the income tax on the amount leviedExplanation
Answer D - Taxpayer will pay only the income tax on the amount levied
The IRS Restructuring and Reform Act of 1998 provided an exception from the 10% early withdrawal tax for amounts withdrawn from an employer-sponsored retirement plan or IRA that are subject to a levy by the IRA. Taxpayers must still pay the income tax.Rate this question:
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- 5.
The form that the IRS would send to an employer to levy an employee’s wages is?
- A.
668-B
- B.
668-W
- C.
668-A
- D.
668-D
Correct Answer
B. 668-WExplanation
Answer B – 668-W
The 668-A Levy of Assets such as accounts receivable, notes receivable, and other assets.
668-B Seizure Process Documents
668-D Release of Levy/Release of Property from LevyRate this question:
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- 6.
The expenses included in the National Standards include?
- A.
Housing
- B.
Food
- C.
Health Care
- D.
Transportation
Correct Answer
B. FoodExplanation
Answer B – Food
The National Standards are food, housekeeping supplies, apparel and services, personal care products and services and miscellaneous.
The National Standards, Out of Pocket Health Care, Local Standards and other Expenses are the 4 types of necessary expenses. Housing and Transportation are included in the Local Standards.Rate this question:
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Current Version
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Oct 06, 2015Quiz Edited by
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Oct 24, 2013Quiz Created by
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