H & R Block Study quiz ch 1-11 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Failure to the meet the 2017 due diligence requirements for EITC, AOTC, and CTC/ACTC
claimed on one return could result in which of the following? - CORRECT ANSWER -
Maximum penalty of $1,530, per return, assessed towards the paid tax preparer.
All of the following are due diligence requirements a Tax Professional must meet for EITC,
AOTC, and CTC/ACTC EXCEPT: - CORRECT ANSWER - Investigate and verify the
accuracy of information the taxpayer provides to show eligibility for EITC, AOTC, and/or
CTC/ACTC.
Which of the following is NOT TRUE about the due diligence requirements? The Tax
Professional must _ - CORRECT ANSWER - (NOT TRUE)Always obtain documentation
to prove the relationship and residency of a qualifying child before completing a claim for the
EITC, CTC/ACTC, or AOTC.
A Tax Professional should ask additional questions whenever the taxpayer's information seems: -
CORRECT ANSWER - Incorrect, inconsistent, or incomplete.
Which of the following records must a Tax Professional keep? - CORRECT ANSWER --
A record of the individual who provided the information used to prepare the credit claimed.
-Photocopies of any documents provided by a taxpayer upon which the Tax Professional relied to
determine the taxpayer's eligibility for, or the amount of, the EITC, CTC/ACTC, or AOTC.
-Documentation of any inquiries the Tax Professional made to comply with the due diligence
requirements, as well as the taxpayer's responses to the inquires at the time of the interview
All of the above.
For 2017, what is the gross income filing requirement for a married couple, where one is age 64
and the other is age 65, using the married filing jointly status? - CORRECT ANSWER -
22050
ACTUAL Exam Questions and CORRECT
Answers
Failure to the meet the 2017 due diligence requirements for EITC, AOTC, and CTC/ACTC
claimed on one return could result in which of the following? - CORRECT ANSWER -
Maximum penalty of $1,530, per return, assessed towards the paid tax preparer.
All of the following are due diligence requirements a Tax Professional must meet for EITC,
AOTC, and CTC/ACTC EXCEPT: - CORRECT ANSWER - Investigate and verify the
accuracy of information the taxpayer provides to show eligibility for EITC, AOTC, and/or
CTC/ACTC.
Which of the following is NOT TRUE about the due diligence requirements? The Tax
Professional must _ - CORRECT ANSWER - (NOT TRUE)Always obtain documentation
to prove the relationship and residency of a qualifying child before completing a claim for the
EITC, CTC/ACTC, or AOTC.
A Tax Professional should ask additional questions whenever the taxpayer's information seems: -
CORRECT ANSWER - Incorrect, inconsistent, or incomplete.
Which of the following records must a Tax Professional keep? - CORRECT ANSWER --
A record of the individual who provided the information used to prepare the credit claimed.
-Photocopies of any documents provided by a taxpayer upon which the Tax Professional relied to
determine the taxpayer's eligibility for, or the amount of, the EITC, CTC/ACTC, or AOTC.
-Documentation of any inquiries the Tax Professional made to comply with the due diligence
requirements, as well as the taxpayer's responses to the inquires at the time of the interview
All of the above.
For 2017, what is the gross income filing requirement for a married couple, where one is age 64
and the other is age 65, using the married filing jointly status? - CORRECT ANSWER -
22050
