SEE - Special Enrollment Exam Quiz: Taxpayer Rights And Procedural Deadlines
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Taxpayer Rights And Procedural DeadlinesQuestion 1 of 15

A taxpayer never filed a 2021 Form 1040. Her only 2021 federal income tax payment was wage withholding. On June 20, 2025, she filed the 2021 return and claimed a refund of the withholding. She had no other payments for 2021.

Which of the following correctly describes the refund claim?

No refund is allowable because the 2021 withholding is deemed paid on April 15, 2022, and that payment is outside the three-year lookback period before the June 20, 2025 claim.
The refund is allowable because a claim filed with a late return is always timely and all withholding for the year may be refunded.
The refund is allowable because the two-year deadline for no-return cases begins when the late return is actually filed.
The refund claim is barred because a taxpayer who did not file a timely return must claim a refund within two years after the original due date.
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SEE - Special Enrollment Exam Quiz

SEE - Special Enrollment Exam Quiz: Taxpayer Rights And Procedural Deadlines

Practice Taxpayer Rights And Procedural Deadlines in SEE - Special Enrollment Exam with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

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This quiz focuses on Taxpayer Rights And Procedural Deadlines, giving you a quick way to practice the rules, question types, and explanations that matter most for SEE - Special Enrollment Exam.

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Question 1

A taxpayer never filed a 2021 Form 1040. Her only 2021 federal income tax payment was wage withholding. On June 20, 2025, she filed the 2021 return and claimed a refund of the withholding. She had no other payments for 2021.

Which of the following correctly describes the refund claim?

  1. No refund is allowable because the 2021 withholding is deemed paid on April 15, 2022, and that payment is outside the three-year lookback period before the June 20, 2025 claim. (correct answer)
  2. The refund is allowable because a claim filed with a late return is always timely and all withholding for the year may be refunded.
  3. The refund is allowable because the two-year deadline for no-return cases begins when the late return is actually filed.
  4. The refund claim is barred because a taxpayer who did not file a timely return must claim a refund within two years after the original due date.
Explanation: Under IRC §6511(b)(2)(A), when a claim is filed within three years after the return is filed, the refund is limited to amounts paid during the three years immediately before the claim. Wage withholding for 2021 is deemed paid on April 15, 2022 under IRC §6513(b)(1), which is more than three years before June 20, 2025. Choice B ignores the lookback limitation. Choice C misapplies the no-return two-year rule; once a return is filed, the filing-date alternative can apply, but it does not make the old withholding refundable. Choice D incorrectly states the no-return two-year rule as running from the original due date rather than from the time the tax was paid.

Question 2

A taxpayer filed her 2024 Form 1040 on February 10, 2025, before the April 15, 2025 due date. The return reported gross income of $150,000 and did not disclose a $60,000 consulting fee that she failed to report. The IRS later discovered the omission.

Absent any other exception, what is the last day on which the IRS may assess the additional tax attributable to the omitted fee?

  1. February 10, 2031, because the six-year period runs from the date the return was actually filed.
  2. April 15, 2028, because the omission affects only the amount of tax and not the three-year assessment period.
  3. February 10, 2028, because the six-year rule compares omitted tax to the tax shown on the return, not to gross income.
  4. April 15, 2031, because the omitted fee exceeds 25 percent of reported gross income and the six-year period runs from the deemed filing date. (correct answer)
Explanation: Under IRC §6501(e)(1)(A), the assessment period is extended to six years if the taxpayer omits gross income in excess of 25 percent of the gross income stated on the return. The omitted $60,000 is 40 percent of the $150,000 reported, and there was no disclosure. Because the return was filed before the due date, IRC §6501(b)(1) treats it as filed on April 15, 2025; six years from that date is April 15, 2031. Choice A uses the actual filing date. Choice B incorrectly applies only the ordinary three-year period. Choice C misstates the statutory comparison, which is to gross income, not tax.

Question 3

An income tax liability was assessed on June 1, 2015. On May 1, 2025, the IRS issued a Notice of Intent to Levy for that liability, and the taxpayer timely requested a collection due process hearing on May 20, 2025. Appeals did not issue its determination until after the taxpayer's original 10-year collection period would have expired.

Which of the following is correct regarding the collection statute expiration date (CSED) while the CDP matter is pending?

  1. The CSED is not suspended, but the IRS may not levy until the Appeals determination is issued.
  2. The CSED is suspended from the date the Notice of Intent to Levy was issued until the date of the Appeals determination, with no additional days.
  3. The CSED is suspended while the CDP hearing and any appeals are pending, and it cannot expire before the 90th day after the final determination. (correct answer)
  4. The CSED is suspended only if the taxpayer also files a petition in bankruptcy during the CDP hearing.
Explanation: IRC § 6330(e)(1) and Treas. Reg. § 301.6330-1(g). The running of the IRC § 6502 collection period is suspended while a timely requested CDP hearing and any appeals are pending, and in no event does the period expire before the 90th day after the final determination. The suspension begins with the hearing request, not with the levy notice. Because the original CSED of June 1, 2025, would otherwise have passed during the hearing, the IRS has at least 90 days after the final determination to collect. Choice C is correct. Choice A is wrong because § 6330(e)(1) suspends the collection period itself, not only levy. Choice B is wrong because it starts the suspension at the levy notice rather than the request and omits the 90-day floor. Choice D is wrong because it conditions the suspension on bankruptcy, which is a separate suspension rule.

Question 4

After an office audit, the IRS mailed the taxpayer a 30-day letter with an examination report proposing a deficiency. The taxpayer disagrees with the report and wants to appeal to the IRS Office of Appeals before a statutory notice of deficiency is issued.

Which of the following is correct regarding the taxpayer's procedural rights?

  1. A timely request for Appeals consideration generally keeps the case in Appeals and delays issuance of a statutory notice of deficiency until the Appeals process concludes. (correct answer)
  2. The taxpayer is generally required to pay the proposed deficiency before Appeals will consider the case, unless the IRS grants a waiver.
  3. The 30-day letter is the statutory notice of deficiency, so the taxpayer must file a Tax Court petition within 30 days of the letter.
  4. If there is no response within 30 days, the taxpayer waives the right to petition the Tax Court after a statutory notice is later issued.
Explanation: IRS Pub. 5 describes the preliminary Appeals opportunity in a 30-day letter; IRC §6212(a) authorizes the statutory notice of deficiency that may follow if the case is not resolved in Appeals. Choice A is correct: a timely request for Appeals consideration generally keeps the case in Appeals and postpones issuance of the statutory notice of deficiency. Choice B is wrong because prepayment is not a prerequisite to an Appeals conference. Choice C confuses the 30-day letter with the statutory notice of deficiency. Choice D is wrong because a taxpayer who fails to respond to the 30-day letter may still receive a statutory notice and petition the Tax Court within 90 days of that notice.

Question 5

On October 31, 2025, the IRS mailed a statutory notice of deficiency to the taxpayer's last known address, her home in Ohio. She was living there at the time but did not open the envelope until December 15, 2025.

If the taxpayer wants to contest the deficiency in the Tax Court, by what date must the petition be filed?

  1. December 1, 2025, because a petition must be filed within 30 days after the notice is mailed, and the 30th day falls on a Sunday.
  2. March 16, 2026, because the 90-day period runs from December 15, 2025, the date the taxpayer opened the notice.
  3. January 29, 2026, because the 90-day period runs from the mailing date, and the date the taxpayer opened the notice is irrelevant. (correct answer)
  4. April 15, 2026, because the notice does not become final until the original filing deadline for the year has passed.
Explanation: IRC §§ 6212(b) and 6213(a). A taxpayer has 90 days after a statutory notice of deficiency is mailed to petition the Tax Court, and a notice mailed to the last known address is valid even if the taxpayer does not read it. The 150-day period applies only to a notice addressed to a person outside the United States, and she was living at the Ohio address. Ninety days after October 31, 2025, is Thursday, January 29, 2026. Choice C is correct. Choice A is wrong because it uses a 30-day period, which is not the petition period. Choice B is wrong because the period runs from mailing, not from when the taxpayer opened the notice. Choice D is wrong because the petition deadline has nothing to do with the return filing deadline.

Question 6

A taxpayer's 2024 Form 1040 was due on April 15, 2025. She timely requested an automatic extension, which extended the filing deadline to October 15, 2025. She did not file the return until November 10, 2025. The return was complete and accurate.

Absent any exception, by what date must the IRS generally assess any additional 2024 income tax?

  1. April 15, 2028, because the assessment period is measured from the original due date when an extension was requested.
  2. November 10, 2028, because a return filed after the extended due date starts the assessment period on the actual filing date. (correct answer)
  3. October 15, 2028, because the extended due date controls the period of limitations for assessment.
  4. There is no general limitation period because the return was filed after the original statutory due date.
Explanation: Under IRC §6501(a), the IRS generally must assess tax within 3 years after the return is filed. Because the return was filed on November 10, 2025, after both the original and extended due dates, the period runs from that actual filing date and expires November 10, 2028. Choice A incorrectly uses the original due date; a return filed late is not deemed filed on the original due date. Choice C incorrectly treats the extended due date as the filing date. Choice D is wrong because a late-filed nonfraudulent return still has a limitations period; the no-limitation rule applies to situations such as a false or fraudulent return or no return.

Question 7

On February 3, 2025, the IRS mailed to the taxpayer's last known address a Notice of Intent to Levy and Notice of Your Right to a Hearing under IRC § 6330, dated February 3, 2025. The taxpayer was outside the United States and did not see the notice until March 12, 2025. On March 17, 2025, she asked her enrolled agent to request a Collection Due Process hearing, and the agent submitted Form 12153 that day.

Which of the following is correct regarding the taxpayer's request?

  1. The March 17 request is timely for a CDP hearing because the 30-day period begins when the taxpayer actually receives the notice, and the taxpayer first saw it on March 12.
  2. The request is not timely for a CDP hearing, but the taxpayer may receive an equivalent hearing; an equivalent hearing does not suspend collection action while it is pending. (correct answer)
  3. The request is not timely for any hearing because a request for an equivalent hearing must be filed within the original 30-day CDP period, with no extension for time outside the United States.
  4. The request is timely for a CDP hearing because a taxpayer who is outside the United States has 150 days from the date of the notice to request a hearing.
Explanation: Under IRC § 6330(a)(3)(B), a request for a CDP hearing after a notice of intent to levy must be made within the 30-day period beginning the day after the date of the notice. The notice was dated February 3, 2025, so the 30-day period ended March 5, 2025; the Form 12153 was submitted March 17, 2025. A taxpayer who misses that deadline may request an equivalent hearing within one year of the notice date. The statutory suspension in IRC § 6330(e) applies to a timely CDP hearing, not to an equivalent hearing, and the Form 12153 instructions confirm that an equivalent hearing does not suspend collection action. Thus Choice B is correct. Choice A is wrong because the period runs from the date of the notice sent to the last known address, not from actual receipt or review. Choice C is wrong because an equivalent hearing is precisely the remedy for a late CDP request made within one year. Choice D is wrong because the 150-day period is for a Tax Court petition after a notice of deficiency for taxpayers outside the United States; it does not apply to a § 6330 hearing request.

Question 8

An individual taxpayer received a CP90 Notice of Intent to Levy dated March 3, 2025. The taxpayer contacted you, an enrolled agent, on April 14, 2025, which was 42 days after the notice date, and asked whether the proposed levy can still be stopped. She has never had a collection due process hearing for the liability.

Which of the following best describes the taxpayer's procedural position?

  1. She may file a petition in the Tax Court before the levy date to challenge the underlying liability on the merits.
  2. She has no right to any Appeals hearing because the 30-day collection due process period has already expired.
  3. She may still file Form 12153 for a collection due process hearing, and the IRS must suspend the levy until the hearing is completed.
  4. She may request an equivalent hearing within the applicable one-year window, but the IRS is not required to suspend collection while that hearing is pending. (correct answer)
Explanation: IRC §6330(a)(3)(B) gives a taxpayer only 30 days after a Notice of Intent to Levy to request a collection due process hearing. Because the request here came 42 days after the notice, the CDP hearing right was lost. Under Treas. Reg. §301.6330-1(i)(1), the taxpayer may seek an equivalent hearing during the equivalent-hearing window, but such a hearing does not suspend collection. Choice A is incorrect because the Tax Court generally obtains jurisdiction over collection matters through a petition for review of a CDP determination, not before one exists. Choice B is incorrect because an equivalent hearing is still available after the CDP period expires. Choice C is incorrect because a late Form 12153 request does not create a CDP hearing or trigger the CDP suspension.

Question 9

Which of the following is correct regarding a statutory notice of deficiency mailed by the IRS for 2025 income tax?

  1. The IRS may assess the tax shown in the notice immediately after the 90-day period expires, even if the taxpayer filed a timely petition with the Tax Court.
  2. A notice mailed by certified or registered mail to the taxpayer's last known address is valid even if never received, and the taxpayer has 90 days from the date of mailing to file a Tax Court petition. (correct answer)
  3. If the notice is addressed to the taxpayer at an address outside the United States, the taxpayer has 180 days from the date of mailing to file a Tax Court petition.
  4. If the notice is mailed after the three-year assessment period has expired, the taxpayer's only remedy is to pay the tax and file a claim for refund, because the Tax Court lacks jurisdiction to consider the period of limitations.
Explanation: IRC § 6212(a)-(b) and § 6213(a). Choice B is correct: a notice of deficiency is valid when mailed by certified or registered mail to the taxpayer's last known address, the taxpayer has 90 days from the date of mailing to file a Tax Court petition, and receipt of the notice is not required to start the period. Choice A misstates the effect of a timely petition: under § 6213(a), the IRS may not assess the deficiency during the 90-day period or, if a petition is filed, until the Tax Court's decision becomes final. Choice C misstates the foreign-address period: it is 150 days, not 180. Choice D misstates the consequence of a notice mailed after the assessment period expires: the notice still confers Tax Court jurisdiction, and the taxpayer may plead the expiration of the period of limitations as a defense, so payment and a refund claim is not the only remedy.

Question 10

Which of the following is correct regarding the period of limitations on assessment for 2025 income tax?

  1. A false or fraudulent return filed with the intent to evade tax extends the assessment period to six years from the date the return was filed, rather than leaving the period open indefinitely.
  2. If the taxpayer fails to file a required return, the IRS may assess the tax at any time within six years after the date prescribed for filing the return.
  3. When a substantial omission extends the assessment period to six years, that six-year period is generally measured from the date the IRS first discovers the omission, and not from the date the return was actually filed by the taxpayer.
  4. The IRS generally must assess additional tax within three years after the return is filed; the period is six years if the return omits more than 25 percent of the gross income stated in the return. (correct answer)
Explanation: IRC § 6501(a), (c), and (e)(1). Choice D is correct: the general assessment period is three years after the return is filed, and the period is six years when the return omits more than 25 percent of gross income. Choice A misstates the fraud rule: a false or fraudulent return with intent to evade tax has no period of limitation. Choice B misstates the nonfiling rule: if no return is filed, the IRS may assess at any time; six years is the substantial-omission period, not the nonfiling period. Choice C misstates the measuring date: the six-year period runs from the date the return was filed, not from the date the IRS discovers the omission.

Question 11

Which of the following is correct regarding the judicial forums available to a taxpayer who disagrees with a federal income tax deficiency?

  1. A taxpayer may bring a refund suit in a U.S. district court after paying only the portion of the assessed tax that is disputed, without paying the remainder.
  2. The U.S. Court of Federal Claims may hear a refund suit even if the taxpayer did not file a claim for refund with the IRS, because the claim requirement applies only to the district courts.
  3. The Tax Court may redetermine a deficiency without the taxpayer first paying the tax, but only if the taxpayer files a petition within the prescribed period after the IRS mails a statutory notice of deficiency. (correct answer)
  4. A taxpayer who lets the 90-day period expire without petitioning the Tax Court may later contest the deficiency in a refund suit only by showing reasonable cause for the failure to petition.
Explanation: IRC § 6213(a) and § 7422(a). Choice C is correct: the Tax Court is a prepayment forum, so it may redetermine a deficiency before the tax is paid if the taxpayer files a timely petition after a statutory notice of deficiency. Choice A misstates the full-payment rule: a refund suit in a district court requires payment of the full assessed tax, not just the disputed portion (Flora v. United States, 362 U.S. 145). Choice B misstates the claim prerequisite: filing a claim for refund with the IRS is a jurisdictional prerequisite for refund suits in both the district court and the Court of Federal Claims. Choice D misstates the consequence of not petitioning the Tax Court: the taxpayer may pay the assessed tax and pursue a refund claim and suit without demonstrating reasonable cause for failing to petition.

Question 12

Which of the following is correct regarding the IRS's adjustment of a 2025 return for a mathematical or clerical error?

  1. The taxpayer must file a petition with the Tax Court within 90 days after the notice of the mathematical error is mailed to contest the adjustment, rather than requesting an abatement from the IRS.
  2. The IRS must first issue a notice of deficiency before assessing additional tax that results from a computational error on the return, unless the taxpayer consents to the assessment in writing.
  3. A request for abatement of a mathematical error assessment must be made in writing within 30 days after the date the notice of the error is mailed, and must state the reason for the disagreement with the adjustment.
  4. The IRS may assess the additional tax without issuing a notice of deficiency, but the taxpayer has 60 days after the error notice is mailed to request abatement, and the IRS must grant a timely request. (correct answer)
Explanation: IRC § 6213(b). Choice D is correct: mathematical and clerical errors are excepted from the deficiency procedures, so the IRS may summarily assess the resulting tax, but it must notify the taxpayer of the error, and the taxpayer has 60 days from the mailing of the notice to request abatement, which the IRS must grant on a timely request. Choice A misstates the remedy: the math-error notice is not a statutory notice of deficiency, so the 90-day Tax Court petition procedure does not apply; the proper response is the 60-day abatement request. Choice B misstates the exception: no notice of deficiency is required before assessing a mathematical or clerical error. Choice C misstates the deadline: the abatement request must be filed within 60 days, not 30.

Question 13

Which of the following is correct regarding interest paid by the IRS on a refund of 2025 income tax?

  1. If a return is filed before the due date, the 45-day period is measured from the date the return was filed rather than from the due date.
  2. Interest on an income tax refund is computed from the date each payment of tax was made, regardless of when the return was filed.
  3. No interest is owed if the refund is issued within 45 days after the later of the unextended due date or the filing date; otherwise interest generally runs from the date of the overpayment. (correct answer)
  4. For a refund attributable to a net operating loss carryback, interest runs from the due date of the return for the earlier year to which the loss is carried back.
Explanation: Governing authority: IRC § 6611(b) and (e)-(f). No interest is allowed if the IRS refunds the overpayment within 45 days after the last day prescribed for filing the return (without regard to extensions) or, for a return filed after that date, within 45 days after the return is filed (§ 6611(e)(1)). Otherwise, interest runs from the date of the overpayment (§ 6611(b)(2)), but for a return filed after its due date, determined with regard to extensions, no interest is allowed for any day before the return is filed (§ 6611(b)(3)). Choice C is correct. Choice A misstates the touchstone for an early-filed return: the 45 days run from the due date, not from the earlier filing date. Choice B misstates the general rule: the 45-day rule can eliminate interest entirely, and a late return earns no interest for days before it is filed. Choice D misstates the carryback rule: an overpayment from a net operating loss carryback is deemed made no earlier than the filing date (the unextended due date) of the return for the year in which the loss arose (§ 6611(f)(1), (f)(4)(A)), not the carryback year.

Question 14

Which of the following is correct regarding the time limits for filing a claim for refund of 2025 income tax?

  1. A refund claim filed within three years after the return was filed is limited to tax paid during the three years immediately before the claim was filed, plus the period of any extension of time for filing. (correct answer)
  2. A taxpayer who did not file a return for the year may file a claim for refund within three years after the date the tax was paid, even if the three-year period from the prescribed filing date has expired.
  3. A return filed during an extension of time to file is treated as filed on the original due date for purposes of the three-year refund claim period, so the claim deadline is the same as for a timely filed return.
  4. For purposes of the refund claim period, income tax withheld from wages is deemed paid on the date the return is actually filed, not on the unextended due date of the return.
Explanation: Governing authority: IRC § 6511(a) and (b)(2)(A); § 6513(a) and (b)(1). A claim must generally be filed within three years after the return was filed or two years after the tax was paid, whichever is later. A claim filed within the three-year period may recover only tax paid during the three years immediately before the claim, plus the period of any extension of time for filing. Choice A is correct. Choice B misstates the no-return rule: when no return was filed, the claim must be filed within two years after the tax was paid, not three. Choice C misstates the deemed-filing rule: a return filed during an extension is filed on the date it is actually filed, and the three-year period runs from that date; only a return filed before the due date is deemed filed on the due date (§ 6513(a)). Choice D misstates the deemed-payment rule: income tax withheld from wages is deemed paid on the unextended due date of the return, not on the actual filing date (§ 6513(b)(1)).

Question 15

Which of the following is correct regarding a taxpayer's Collection Due Process (CDP) rights for a proposed levy to collect 2025 income tax?

  1. A taxpayer who disagrees with the Appeals Office's CDP determination must file a petition with the Tax Court within 90 days of the determination.
  2. A taxpayer who requests a hearing after the 30-day period but within one year of the CDP notice is entitled to an equivalent hearing; the IRS is not required to suspend collection while the equivalent hearing is pending. (correct answer)
  3. At the CDP hearing, the taxpayer may challenge the existence or amount of the underlying tax liability even if the IRS previously mailed a statutory notice of deficiency for that tax and the taxpayer did not petition the Tax Court.
  4. The IRS must mail the notice of intent to levy at least 60 days before the first levy on a taxpayer's property.
Explanation: IRC §§ 6330 and 6331(d); Treas. Reg. §301.6330-1(i). Choice B is correct: a hearing request filed after the 30-day period but within one year of the CDP notice entitles the taxpayer to an equivalent hearing, and the IRS is not required to suspend collection while that hearing is pending. Choice A misstates the review deadline: a petition to the Tax Court challenging a CDP determination must be filed within 30 days of the determination, not 90. Choice C drops the exception to the liability-challenge rule: the underlying liability may be challenged at a CDP hearing only if the taxpayer did not receive a statutory notice of deficiency or otherwise have an opportunity to dispute it. Choice D misstates the pre-levy notice period: § 6331(d) requires written notice at least 30 days before the first levy, not 60.