1040 Preparation and Planning 9: Tax Practice (2013 Edition) (00319960)

This last course in the series covers filing rules for topics such as filing deadlines, extensions, amended returns, payment, and different methods of filing. It also provides details on negotiating an offer in compromise, how the IRS selects returns for audits, and precautions that can be taken to minimize the chances of having your return examined. The course also reviews the appeals process and recovering costs from the government if you are vindicated. This course covers generally applicable tax knowledge for your personal and professional development. Any time spent completing this course is personal to you, is not part of your job duties and, as such, will not be compensated.
Final Exam > Results Page

final exam score:

100%

Question 1

Correct

The due date of the 2012 income tax return for most individuals (without regard to extensions) is:

December 31, 2012

March 15, 2013

(You Answered) (Correct Answer) April 15, 2013

June 17, 2013

Question 2

Correct

If a taxpayer wants additional time to file a return, he can obtain an automatic extension for:

Two months

Four months

Five months

(You Answered) (Correct Answer) Six months

Question 3

Correct

Federal income tax can be paid with any of the following except:

Money order

EFTPS OnLine

(You Answered) (Correct Answer) Cash

Credit card

Question 4

Correct

Tax returns are treated as timely filed in all of the following situations except:

(You Answered) (Correct Answer) The return is sent from Spain to an IRS service center using the Spanish postal service.

The return is sent by the due date using an authorized private delivery service.

The return is sent by the due date using U.S. mail.

The return is e-filed by the due date.

Question 5

Correct

Which of the following statements about electronic filing of tax returns is not correct?

Electronic filing speeds up the time for obtaining a refund.

(You Answered) (Correct Answer) All taxpayers can file electronically for free.

W-2 forms do not have to be sent to the IRS.

No manual signature is required if the taxpayer uses a Self-Select PIN.

Question 6

Correct

The usual period in which a refund claim can be filed when a taxpayer has filed a return on time is:

Two years

(You Answered) (Correct Answer) Three years

Six years

Seven years

Question 7

Incorrect

A “quick refund” can be filed for:

A bad debt

A worthless security

A refund for any reason

(Correct Answer) A net operating loss

Question 8

Correct

To use the U.S. Tax Court small-case procedure, the amount in dispute must be less than:

$10,000

(You Answered) (Correct Answer) $50,000

$100,000

$250,000

Question 9

Correct

The IRS will consider an offer in compromise if:

The taxpayer is in bankruptcy.

(You Answered) (Correct Answer) Acceptance of an offer would promote effective tax administration by preventing economic hardship.

The amount of outstanding tax liability exceeds $10,000.

The taxpayer makes a request for one, regardless of outstanding liability or personal financial circumstances.

Question 10

Correct

Electronic filing can be done through all of the following venues except:

A taxpayer’s home computer

A taxpayer’s computer at work

A paid professional’s computer

(You Answered) (Correct Answer) A computer at an IRS service center