Accredited ACH Professional (AAP) Practice Exam

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Prepare for the Accredited ACH Professional (AAP) Exam with tailored questions and study materials to enhance your understanding of ACH transactions and operations. Test your skills and readiness for this important certification!

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Which transaction set is specifically for tax-related processing?

ANSI ASC X12.520
ANSI ASC X12.820
ANSI ASC X12.813
ANSI ASC X12.835

The correct answer is: ANSI ASC X12.813

The correct choice for a transaction set specifically designed for tax-related processing is ANSI ASC X12.820. This transaction set is known as the "Tax Remittance Advice" and is used primarily for reporting tax-related financial information between entities. It allows for the structured exchange of tax data, which is essential for compliance and accurate tax filing. In detail, the X12.820 transaction set provides a mechanism for employers and organizations to submit tax payments and to report on tax withholding, making it a critical component in the management of tax-related transactions. It enables the standardization of tax documentation, facilitating smoother communication between different parties, such as businesses and tax authorities. While other transaction sets like ANSI ASC X12.835 focus on health care claim payments and remittance advice, the X12.820 is tailored for tax-specific needs, ensuring that tax reporting is handled effectively and in compliance with regulatory requirements.