Tax Preparer Exam
Study online at https://quizlet.com/_fzo4q3
1. If an individual does not file their return by the due 5% / 25%
date (including extensions), they may have to pay a fail-
ure-to-file penalty. The penalty is usually ___ for each
month or part of the month that a return is late, but
not more than ___. The penalty is based on the tax not
paid by the due date (without regard to extensions).
2. An individual will have to pay a failure to pay penalty of .25%
1/2 of 1% (0.50%) of their unpaid taxes for each month
or part of the month after the due date that the tax
is not paid. The monthly rate is _____ if an installment
agreement is in effect for that month. They must have
filed their return by its due date (including extensions)
to qualify for this reduced penalty.
3. If an individual does not pay enough tax, either 2210
through tax withholding or by making estimated tax
payments, they will have an underpayment of estimat-
ed tax and they may have to pay a penalty. In most
cases, the IRS can figure this tax penalty, or the IRS
Form _____ can be completed to calculate the possible
penalty and the form is attached to the filed tax return.
4. If an individual is serving in a combat zone as a mem- 180 days
ber of the military, the deadline for filing their return, is
at least ______ after the latter of either the last day they
are in a combat zone, the last day the area qualifies
as a combat zone, or the last day of any continuous
qualified hospitalization for injury from service in the
combat zone.
5.
, Tax Preparer Exam
Study online at https://quizlet.com/_fzo4q3
Which of the following statements is true regarding Even though Form 4868
the filing of a Form 4868, Application for an Automatic is filed, an individual will
Extension of Time to File? owe interest and may be
charged a late payment
penalty on the amount
they owe if they do not pay
the tax due by the regular
due date
6. Nelly Nathanson is fully supporting her 19-year-old Yes, because Clara is ful-
best friend Clara Korn who lives with her all year round. ly supported by Nelly, lives
Her best friend is employed, not going to school, and year round with her, and
is currently making $3,500 a year. Is Nelly able to claim passes the gross income
Clara as a dependent? And for which reason? test, she is considered a
qualifying relative
7. Which of the statements below is not correct regarding Regardless of the taxpay-
claiming a married individual as a dependent on a tax er's child's own tax situa-
return? tion, married or not, if their
child is under the age of 26
they can choose to claim
the child as their depen-
dent. This is known as the
"Joint Return Test"
8. Once a joint tax return is filed, the taxpayer and spouse None of the above are cor-
can choose to amend the filed tax return to change rect because one generally
the filing status to married separate returns at any cannot change a filing sta-
time within ______ from the due date of the joint return tus from married joint to
(not including extensions) by filing an amended return, married separate once the
Form 1040X. tax return is filed
9. What is estimated tax?
, Tax Preparer Exam
Study online at https://quizlet.com/_fzo4q3
Estimated tax is the
method used to pay tax on
income that is not subject
to withholding
10. Which of the statements below is true regarding Inno- The IRS may provide relief
cent Spouse Relief of joint tax liability? to an "innocent spouse"
from joint responsibility of
any tax liability, interest
and/or penalties associat-
ed with a filed tax return
11. Sometimes there is not one person that provides more Multiple support declara-
than half the support of a person. When this happens, tion
any one person (but only one) who individually pro-
vides more than 10% of the person's support, can claim
an exemption for that person as a qualifying relative. A
_________identifying each of the others who agreed not
to claim the exemption must be attached to the return
of the person claiming the exemption. IRS Form 2120
can be used for this purpose.
12. Which of the following employer-provided benefits are Pay a taxpayer receives
taxable as income to the taxpayer? from an employer while
the taxpayer is sick or in-
jured that replaces regular
work pay for a short term
illness
13. Which of the following items, awarded as a settlement All of the above are correct.
or judgment involving back pay, should be included as
income and reported on Form W-2?
Study online at https://quizlet.com/_fzo4q3
1. If an individual does not file their return by the due 5% / 25%
date (including extensions), they may have to pay a fail-
ure-to-file penalty. The penalty is usually ___ for each
month or part of the month that a return is late, but
not more than ___. The penalty is based on the tax not
paid by the due date (without regard to extensions).
2. An individual will have to pay a failure to pay penalty of .25%
1/2 of 1% (0.50%) of their unpaid taxes for each month
or part of the month after the due date that the tax
is not paid. The monthly rate is _____ if an installment
agreement is in effect for that month. They must have
filed their return by its due date (including extensions)
to qualify for this reduced penalty.
3. If an individual does not pay enough tax, either 2210
through tax withholding or by making estimated tax
payments, they will have an underpayment of estimat-
ed tax and they may have to pay a penalty. In most
cases, the IRS can figure this tax penalty, or the IRS
Form _____ can be completed to calculate the possible
penalty and the form is attached to the filed tax return.
4. If an individual is serving in a combat zone as a mem- 180 days
ber of the military, the deadline for filing their return, is
at least ______ after the latter of either the last day they
are in a combat zone, the last day the area qualifies
as a combat zone, or the last day of any continuous
qualified hospitalization for injury from service in the
combat zone.
5.
, Tax Preparer Exam
Study online at https://quizlet.com/_fzo4q3
Which of the following statements is true regarding Even though Form 4868
the filing of a Form 4868, Application for an Automatic is filed, an individual will
Extension of Time to File? owe interest and may be
charged a late payment
penalty on the amount
they owe if they do not pay
the tax due by the regular
due date
6. Nelly Nathanson is fully supporting her 19-year-old Yes, because Clara is ful-
best friend Clara Korn who lives with her all year round. ly supported by Nelly, lives
Her best friend is employed, not going to school, and year round with her, and
is currently making $3,500 a year. Is Nelly able to claim passes the gross income
Clara as a dependent? And for which reason? test, she is considered a
qualifying relative
7. Which of the statements below is not correct regarding Regardless of the taxpay-
claiming a married individual as a dependent on a tax er's child's own tax situa-
return? tion, married or not, if their
child is under the age of 26
they can choose to claim
the child as their depen-
dent. This is known as the
"Joint Return Test"
8. Once a joint tax return is filed, the taxpayer and spouse None of the above are cor-
can choose to amend the filed tax return to change rect because one generally
the filing status to married separate returns at any cannot change a filing sta-
time within ______ from the due date of the joint return tus from married joint to
(not including extensions) by filing an amended return, married separate once the
Form 1040X. tax return is filed
9. What is estimated tax?
, Tax Preparer Exam
Study online at https://quizlet.com/_fzo4q3
Estimated tax is the
method used to pay tax on
income that is not subject
to withholding
10. Which of the statements below is true regarding Inno- The IRS may provide relief
cent Spouse Relief of joint tax liability? to an "innocent spouse"
from joint responsibility of
any tax liability, interest
and/or penalties associat-
ed with a filed tax return
11. Sometimes there is not one person that provides more Multiple support declara-
than half the support of a person. When this happens, tion
any one person (but only one) who individually pro-
vides more than 10% of the person's support, can claim
an exemption for that person as a qualifying relative. A
_________identifying each of the others who agreed not
to claim the exemption must be attached to the return
of the person claiming the exemption. IRS Form 2120
can be used for this purpose.
12. Which of the following employer-provided benefits are Pay a taxpayer receives
taxable as income to the taxpayer? from an employer while
the taxpayer is sick or in-
jured that replaces regular
work pay for a short term
illness
13. Which of the following items, awarded as a settlement All of the above are correct.
or judgment involving back pay, should be included as
income and reported on Form W-2?
