# Presentation: 487147

## CHAPTER 7 – Questions and Answers

- 	Students - Here are 14 questions to test 	what you have learned!
- 			Press the buttons on the left to check your 			answers.
- 			If you answer correctly, I will tell you 				“Affirmative”.
- 			If you answer incorrectly, I will tell you 				“Negative”.
**IT IS TIME TOPROCEED TO THE FIRST QUESTION**

## Question 1 - When you “terminate collection action” on a debt you are:

**stopping **_**all**_** collection action on  the debt.**
**ceasing **_**active collection**_** on the debt.**
**C.****	****writing-off the debt.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 2 - Temporarily ceasing active collection on a debt is called:

**A.****	****being lazy.**
**B.****	****currently-not-collectible.**
**C.****	****suspension.**

## “AFFIRMATIVE”

**“****AFFIRMATIVE”**

- Click anywhere to go to the next question....

## Question 3 - All of the following are legitimate reasons for terminating collection action except:

**A.****	****The debtor is discharged in bankruptcy.**
**B.****	****You cannot locate the debtor.**
**C.****	****Your boss tells you to finish action on the       ****	****debt before you go on vacation.**
**D.****	****The debtor does not have the ability to pay ****	****any portion of the debt.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 4 - The term write-off refers to:

**   **
**	****A.****	****A decision by Santa Clause that a child should not ****	****receive a present for the upcoming Christmas.**
**   ****B.****	****A determination that a debtor does not have to ****	****pay a debt that is owed.**
**   ****C.****	****A determination that a debt has no value for ****	****accounting purposes and an agency’s action to ****	****reflect this determination in the agency’s ****	****accounting**** ****reports.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 5 - You may only write-off a debt after the debt has been terminated:

**A.****	****True**
**B.****	****False**
**C.****	****True and False**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## 		Question 6 - According to OMB Circular No. A-129, how many classifications of write-off are there?

**A. Two**
**B. Three**
**C.  This is a trick question - there is no such thing as OMB.**** **

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 7 - The two classifications of write-off are called:

**A.  Termination and currently-not-collectible.**
**B. Jack and Jill.**
**C.  Currently-not-collectible and close-out.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 8 - 	A debt is classified as “close-out”...

**A. Before it is terminated.**
**B. When it is determined that the agency does not intend to take any further action to collect the debt.**
**C.  When it is determined that a debt is ineligible for the Treasury Offset Program.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 9 - A 1099-C is...

**A. ****	****A form filed with the Internal Revenue Service used to report potential income  of a debtor whose debt has been closed-out.**
**B.****	**** A Federal Claims Collection Standards section dealing with termination of indebtedness.**
**C.****	****A new jumbo aircraft created by Boeing that can hold up to 1099 passengers.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 10 - The dollar threshold for mandatory 1099-C reporting is:

**	****	****	****	****A. $1.37**
**	****	****	****	****B. $500**
**	****	****	****	****C. $600**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 11 - What is an “identifiable event”?

**A.  A lineup at a police station where a witness to a crime identifies a suspect.**
**B. An event that triggers the requirement to report a discharge of indebtedness to IRS as potential income.**
**C. A verifiable UFO siting. **

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 12 - How many identifiable events are there under IRS regulations?

**	****	****	****A. 6**
**	****	****	****B. 8**
**	****	****	****C.   Its not the quantity that matters, ****	****	****but the quality.**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 13 - Which answer has each of the terms on the left matched to the appropriate source document on the right.

**Active collection**** --- Federal Claims Collection Standards**
**	****	****Discharge of Indebtedness**** --- Internal Revenue Code**
**	****	****Currently-not-collectible**** --- OMB Circular No. A-129**
**         ****B.  ****Active collection**** --- OMB Circular No. A-129**
**	****	****Discharge of Indebtedness**** --- Internal Revenue Code**
**	****	****Currently-not-collectible**** --- Federal Claims Collection Standards**
**      **
**         ****C.   ****Active collection**** --- The Bone Collector**
**	****	**** ****Discharge of Indebtedness**** --- A River Runs Through It**
**	****	**** ****Currently-not-collectible**** --- The Merchant of Venice**
**	**

## Click anywhere to go to the next question....

**“****AFFIRMATIVE”**

## Question 14 - If a debtor files for Chapter 11 bankruptcy protection, the agency should:

**	****A.  Close-out the debt and issue a 1099-C.**
**	****B. Terminate collection action on the debt.**

**	****C.  Write-off the debt.**
**	****D.  Suspend collection action until the bankruptcy case is dismissed.**

## Click anywhere to continue...

**“****AFFIRMATIVE”**

**YOU HAVE FINISHED MY TUTORIAL.**
**YOU ARE A GOOD STUDENT AND DID WELL.**
**“****HASTA LA VISTA, BABY!”**

## “NEGATIVE!”

**“****NEGATIVE!”**

**HIT BACK ARROW AND TRY AGAIN**