CAA CAA Authorization and Certification Requirements 1 — Questions and Answers
Question 1: Which IRS form must be submitted to apply for status as a Certified Acceptance Agent?
- Form 13551 (Correct answer)
- Form W-7
- Form SS-4
- Form 2848
Correct answer: Form 13551
Form 13551, Application to Participate in the IRS Acceptance Agent Program, is required to apply for both basic Acceptance Agent and Certified Acceptance Agent status.
Question 2: How long is an IRS Acceptance Agent agreement valid before it must be renewed?
- 3 years (Correct answer)
- 1 year
- 5 years
- 2 years
Correct answer: 3 years
Acceptance Agent agreements, including CAA agreements, are valid for three years and must be renewed by submitting a new Form 13551 before expiration.
Question 3: What is the PRIMARY distinction between a Certified Acceptance Agent (CAA) and a basic Acceptance Agent (AA)?
- CAAs can certify copies of identity documents; AAs must forward original documents to the IRS (Correct answer)
- CAAs can prepare tax returns while AAs cannot
- CAAs are IRS employees while AAs are private contractors
- CAAs only handle corporate ITIN applications
Correct answer: CAAs can certify copies of identity documents; AAs must forward original documents to the IRS
The key distinction is that CAAs are authorized to certify copies of identity documents themselves, whereas basic AAs must forward original documents or certified copies from the issuing agency to the IRS.
Question 4: Which of the following is a mandatory requirement before being approved as a Certified Acceptance Agent?
- Completing IRS-approved ITIN training (Correct answer)
- Holding a law degree or CPA license
- Being a US citizen or permanent resident
- Employing at least five other tax professionals
Correct answer: Completing IRS-approved ITIN training
Applicants must complete IRS-approved training on ITIN procedures and CAA responsibilities as a prerequisite for CAA approval.
Question 5: What type of IRS screening do all CAA applicants undergo as part of the approval process?
- A suitability check including background screening (Correct answer)
- A credit history and financial review
- A full tax compliance audit for the past 10 years
- An annual fingerprint renewal requirement
Correct answer: A suitability check including background screening
The IRS conducts a suitability check, which includes background screening, on all CAA applicants to ensure they meet the standards required to represent taxpayers.
Question 6: Which professional categories are eligible to apply for Certified Acceptance Agent status with the IRS?
- Enrolled agents, CPAs, attorneys, financial institutions, and other authorized tax professionals (Correct answer)
- Only licensed CPAs and attorneys
- Only enrolled agents and CPAs
- Any US resident over the age of 21
Correct answer: Enrolled agents, CPAs, attorneys, financial institutions, and other authorized tax professionals
CAA status is available to a broad range of professionals including enrolled agents, CPAs, attorneys, financial institutions, and other authorized tax professionals who meet IRS requirements.
