RTRP Exam questions and answers 2024

"Considered unmarried" - Files separate return - TP pays >1/2 upkeep home - TP's spouse did not live in home last 6 mos - TP's home main home for qualifying child for >1/2 year - TP is eligible to claim regardless of whether dependency exemption is actually claimed U.S Citizen Person born in U.S. Born outside U.S. where one parent is U.S. citizen at time of birth Naturalized citizen Automatic 2 month extension to file TPs living outside the U.S. and Puerto Rico and where TP's business is outside the U.S. and Puerto Rico Qual child of divorced parents Custodial parent even if dependency waived Filing requirements - self-employed - Gross income meets filing requirements for TP - Net earnings from self-employment $400 or more Form 4868 Extension Form 8332 Waive dependency Green card test Individual allowed to reside in the U.S. as an immigrant under the immigration laws HOH requirement - TP unmarried or "considered unmarried" last day of year - TP > 1/2 upkeep of home - Qual person lived with TP > 1/2 year Non-resident alien A non-U.S. citizen who doesn't pass the green card test or the substantial presence test QC Age test - Under age 19 and younger than the TP - FT student <24 and younger than TP - Any age perm disabled QC Residency test Lived with TP > 1/2 year QC Support test Child must not have provided over half of their own support for the year Qualifying Child tests Relationship Age Residency Support Not a qual child of another person QC Relationship test child/step/foster/adopted or descendent sib/step or descendent Qualifying relative tests Relationship/Member of household Gross Income Support QR not a qualifying child of another person If lived there all year may be dependent but NOT for purposes of HOH QR gross income test <exemption amount ($3700 for 2011) QR relationship or member of household test Related to taxpayer OR have lived with TP ALL year QR support test TP provided > 1/2 support QR for HOH status QR by meeting relationship test ok QR by member of household or multiple support agreement does NOT qualify Resident alient A non-U.S. citizen who meets either the green card test or the substantial presence test Substantial presence test Met when TP physically present in the U.S. for at least 183 days during a 3-yr period as follows: - all days in present year (31 minimum) - 1/3 days present in prior year - 1/6 days present in second prior year Support for dependency does NOT include: - taxes - life ins premiums - funeral expenses - scholarships - educ assistance - govt assistance due to disaster Tests that must be met for ANY dependency exemption - Citizen/resident test - Jt return - Dependent TP test - All QC or QR tests TIN numbers SSN ITIN ATIN Circ 230 ad restrictions eFile - copies of broadcast commercials until end of year following broadcast non-eFile adds - 3 years "authorized IRS e-file provider" Form 8453 Form to send IRS with supplemental documentation required for e-filed return. - copy to TP - within 3 days of e-filed acceptance - retain copies until the end of the filing year Levels of Sanctions (Circ 230) - Level 1 - little impact, letter warning - Level 2 - adverse impact, may be restricted or suspended - Level 3 - may be suspended current and next 2 years, then expelled Returns ineligible for EFile Prior-year Fiscal year Amended M/S return in community property states Lack of due diligence EIC penalty $100 per failure Penalty for unauthorized disclosure of TP info $250/use Criminal - $1000 fine and/or 1-year prison Automatic representation privileges Attorneys, CPAs, enrolled agents and actuaries, enrolled retirement plan agents 1040EZ S/MFJ under 65 not blind no dependents max $100,000 income