page 24-5

assets/hock/Z-unit1.p24.md

@@ -0,0 +1,21 @@
+Part 1 of the exam is broken down into 6 sections:
+
+1. Preliminary Work with Taxpayer Data - 14 questions
+2. Income and Assets - 17 questions
+3. Deductions and Credits - 17 questions
+4. Taxation - 15 questions
+5. Advising the Individual Taxpayer - 11 questions
+6. Specialized Returns for Individuals - 12 questions
+
+1. Use of Prior Year Returns tax returns for clients, tax professionals are expected to gather and verify all necessary taxpayer information. 
+
+2. This includes reviewing prior-year tax returns for accuracy, completeness, and compliance. If any errors or omissions are discovered on a prior-year return, the preparer is required by law to inform the taxpayer of the mistake and explain the potential consequences if it is not corrected. BUT, the preparer is not obligated to fix the error. 
+
+Prior-year returns can help identify major mathematical mistakes and alert the preparer to any issues that may impact the current year's return.
+
+During the review process, the preparer must also consider any items from previous years that may affect the current year's return, such as:
+
+1. Carryovers,
+2. Net operating losses,
+3. Tax credit carryovers, of which examples include the pr adoption cred or year AMT tax credit and the prior-year depreciation and asset basis.
+4. Prior-year depreciation and asset basis

assets/hock/Z-unit1.p25.md

@@ -0,0 +1,29 @@
+Taxpayer Biographical Information
+
+When filing tax returns, information is required. A tax professional must collect this information: 
+1. legal mame, 
+2. date of birth, 
+3. marital status, 
+4. Residency status and/or citizenship, 
+5. Dependent information, 
+5. taxpayer's identification number (SSN, PTIN; GF NTIN)
+
+In order to prevent fraudulent tax filings, it is important for taxpreparers to request IDs. Photo IDs are prefered and should include the taxpayer's name and current address. Its also crucial for taxpreparers to verify social security cards, ITIN letters, and other docs to ensure that the correct TINS are used for the taxpayer, their spouse, and any dependents listed on the return. 
+
+Additionally, taxpayers have the option to request an Identity Protection Personal Identification Number (IP PIN) which must be entered into software fo the IRS to accept an electronically filed tax return. This service is now avaiable to anyone, regardless of whether they have been a victim of identity theft or not. The IRS require al individuals listed on a federal income tax return to have a valid Taxpayer Identification Number (TIN), including the taxpayer, their spouse (if married), and any dependents listed. 
+
+- **Three types of TINS are:**
+1. Social Security number (SSN)
+2. Individual taxpayer identification number (ITIN)
+3. Adoption taxpayer identification number (ATIN)
+
+Note: The personal and financial information is considered Sensitive and confidential. A preparer who wrongfully discloses a taxpayer's information could face civil and criminal charges.
+
+A taxpayer who cannot obtain an SSN must apply for an ITIN in order to file a US tax return. Generally, only US. citizens and lawiully admitted noncitizens authorized to work n the United States are eligible for a Social Security number.
+
+Non-resident aliens with a US, tax lability enerally have ITINS.
+
+A taxpayer with an ITIN is not eligible to receive Social Security benefits or the **Earned Income Tax Credit**. ITINS are for federal tax reporting anly and are not intended to serve any other purpose.
+
+A form is used for ATIN requests, Form **W7A, Application for Taxpayer ID Number for Pending US Adoptions.
+