Tax Prep Basic |168 questions |with correct answers

Only volunteers who prepare and review tax returns are required to complete the Volunteer Standards of Conduct Training and certification. CORRECT ANSWER False Volunteers are generally held liable for the tax returns they prepare at VITA/TCE sites. CORRECT ANSWER False Volunteers are not required to complete a return if they have concerns about the accuracy of information provided by the taxpayer or other concerns. CORRECT ANSWER True 1. To determine if a taxpayer must file a tax return, do you need to know their income for the year, filing status, and place of birth? CORRECT ANSWER No- You need to know their approximate income, likely filing status, and age. If a taxpayer cannot obtain a valid Social Security number and has not yet applied for an taxpayer identification number, can you use the taxpayer's driver's license or passport instead? CORRECT ANSWER No- Taxpayers must have a valid Social Security number or taxpayer identification number before you can assist them. A taxpayer cannot use a valid ITIN if it was not used on a federal tax return at least once in the last three years. CORRECT ANSWER Yes- ITINs that have not been used on a federal tax return at least once in the last three consecutive years will no longer be valid for use on a tax return unless renewed by the taxpayer. Are the only acceptable means of verifying taxpayers's identity a valid U.S. drivers license, passport, or military ID? CORRECT ANSWER No- Other acceptable means are a current state ID, visa, national ID, employer ID, school ID or other proof of taxpayer identification. If the taxpayer with a valid Social Security number (SSN) receives a Form W-2 with an incorrect SSN, can you prepare the return using that W-2? CORRECT ANSWER Yes- You can use the original W-2 to prepare the return, but the taxpayer needs to request a corrected Form W-2 from the employer before submitting the tax return.