2026/2027 CALIFORNIA REGISTERED TAX PREPARER (CRTP/ CTEC) EXAM PREP
EXAM AND A NEW STUDY GUIDE ALL COMPLETE ACCURATE EXAM ACTUAL
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (100%
CORRECT VERIFIED ANSWERS) |LATEST UPDATED VERSIONS |GUARANTEED
PASS A+
What is a Tax Professional's responsibility upon finding out that a client
has not complied with any tax law?
Answer- A Tax Professional must advise the client of the
noncompliance and the consequences for not correcting the situation.
(26.7)
What action should a Tax Professional take if a client insists on
reporting information that is inaccurate?
Answer- A Tax Professional should never prepare a return that contains
inaccurate information. (26.7)
If the employee thinks his Form W-2 is not correct, what should he do?
Answer- • If the name or social security number is incorrect, the
taxpayer may change it himself and need not obtain a corrected W-2
before filing his tax return.
• The employer should be notified of the error and asked to update his
records.
• Furthermore, the employee's social security number and earnings
records should be verified with the Social Security Administration to
ensure that the earnings were properly credited. (2.17)
,Where can the regular standard deduction amounts be found?
Answer- • In the left-hand margin at the top of page 2 of Forms 1040
and 1040A.
• They are: S, MFS $5,700; MFJ, QW $11,400; HH $8,400.
• The amounts differ for taxpayers age 65 or older or blind and those
who may be claimed as dependents by other taxpayers.
[2010]
What is the exemption amount for 2009?
$3,650 with a reduction for higher-income taxpayers of 2% for each
$2,500 ($1,250 MFS) the AGI exceeds amounts:
$166,800 S
$250,200 MFJ QW
$125,100 MFS
$208,500 HH
(3.7,8)
Are early distributions from qualified retirement plans always
penalized?
No.
,• Does not apply to qualified disaster recovery assistance distributions.
• Does not apply to any recovery of cost or any amount rolled over in a
timely manner.
(22.12,13)
How does a Tax Professional know if a distribution exception applies?
Answer- • He can determine that by using thorough interview questions
when discussing the distribution with the client.
• The distribution code on the 1099-R can also be helpful to the Tax
Professional. (22.12)
Is there a time limit for filing amended returns?
Answer- Yes.
Three years from the date the return was filed or within two years the tax
was paid, whichever is later. (23.3)
A taxpayer wants to amend his 2006 return. He filed it April 16, 2007.
The return was examined by the IRS on January 9, 2009 and $280
additional tax was paid that date. What is the latest date on which an
amended return may be filed?
Answer- January 9, 2011
, Any refund will be limited to $280 (the tax paid within the two years
preceding the date the amended return was filed). (23.3)
What are the rules for changing filing status after the due date of the
return?
Answer- Married couples may not change their filing status from MFJ to
MFS after the due date. (23.4)
A taxpayer's employer paid $500 of a taxpayer's $2,000 child care
expenses for him. How will the employer's assistance affect the child-
care credit?
Answer- Total child care expenses must be reduced by any amounts paid
by the employer. (8.11)
Where does the employer report the amount of child care expense
assistance to the taxpayer?
Answer- Form W-2 Box 10 (8.11)
What is the maximum amount of contributions on which the Saver's
Credit may be based?
Answer- $2,000 per individual or spouse (21.19)
EXAM AND A NEW STUDY GUIDE ALL COMPLETE ACCURATE EXAM ACTUAL
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (100%
CORRECT VERIFIED ANSWERS) |LATEST UPDATED VERSIONS |GUARANTEED
PASS A+
What is a Tax Professional's responsibility upon finding out that a client
has not complied with any tax law?
Answer- A Tax Professional must advise the client of the
noncompliance and the consequences for not correcting the situation.
(26.7)
What action should a Tax Professional take if a client insists on
reporting information that is inaccurate?
Answer- A Tax Professional should never prepare a return that contains
inaccurate information. (26.7)
If the employee thinks his Form W-2 is not correct, what should he do?
Answer- • If the name or social security number is incorrect, the
taxpayer may change it himself and need not obtain a corrected W-2
before filing his tax return.
• The employer should be notified of the error and asked to update his
records.
• Furthermore, the employee's social security number and earnings
records should be verified with the Social Security Administration to
ensure that the earnings were properly credited. (2.17)
,Where can the regular standard deduction amounts be found?
Answer- • In the left-hand margin at the top of page 2 of Forms 1040
and 1040A.
• They are: S, MFS $5,700; MFJ, QW $11,400; HH $8,400.
• The amounts differ for taxpayers age 65 or older or blind and those
who may be claimed as dependents by other taxpayers.
[2010]
What is the exemption amount for 2009?
$3,650 with a reduction for higher-income taxpayers of 2% for each
$2,500 ($1,250 MFS) the AGI exceeds amounts:
$166,800 S
$250,200 MFJ QW
$125,100 MFS
$208,500 HH
(3.7,8)
Are early distributions from qualified retirement plans always
penalized?
No.
,• Does not apply to qualified disaster recovery assistance distributions.
• Does not apply to any recovery of cost or any amount rolled over in a
timely manner.
(22.12,13)
How does a Tax Professional know if a distribution exception applies?
Answer- • He can determine that by using thorough interview questions
when discussing the distribution with the client.
• The distribution code on the 1099-R can also be helpful to the Tax
Professional. (22.12)
Is there a time limit for filing amended returns?
Answer- Yes.
Three years from the date the return was filed or within two years the tax
was paid, whichever is later. (23.3)
A taxpayer wants to amend his 2006 return. He filed it April 16, 2007.
The return was examined by the IRS on January 9, 2009 and $280
additional tax was paid that date. What is the latest date on which an
amended return may be filed?
Answer- January 9, 2011
, Any refund will be limited to $280 (the tax paid within the two years
preceding the date the amended return was filed). (23.3)
What are the rules for changing filing status after the due date of the
return?
Answer- Married couples may not change their filing status from MFJ to
MFS after the due date. (23.4)
A taxpayer's employer paid $500 of a taxpayer's $2,000 child care
expenses for him. How will the employer's assistance affect the child-
care credit?
Answer- Total child care expenses must be reduced by any amounts paid
by the employer. (8.11)
Where does the employer report the amount of child care expense
assistance to the taxpayer?
Answer- Form W-2 Box 10 (8.11)
What is the maximum amount of contributions on which the Saver's
Credit may be based?
Answer- $2,000 per individual or spouse (21.19)
