Final Exam > Results Page
final exam score:
final exam status:
90%
Question 1
Correct
Which of the following statements is correct?
Regardless of income, a taxpayer can make a deductible contribution to an IRA if he/she was unaware of being an active participant in an employer’s retirement plan.
(You Answered) (Correct Answer) Filing a gift tax return is wise when donating property (other than publicly traded stock) in order to start the statute of limitations.
Having an LLC own a principal residence provides bankruptcy protection for the home.
The IRS is barred from using information on a loan application to reconstruct a taxpayer’s income.
Question 2
Correct
The IRS-set standard mileage rate for medical driving in 2013 is:
14 cents per mile
23 cents per mile
(You Answered) (Correct Answer) 24 cents per mile
56.5 cents per mile
Question 3
Correct
In 2013, if a taxpayer opts to use the IRS allowance for a home office deduction, the write-off is capped at:
(You Answered) (Correct Answer) $1,500
$5 per square foot times the taxpayer’s square footage for the space (with no cap)
$2,500
$3,000
Question 4
Incorrect
Social Security disability benefits are:
(Correct Answer) Always taxed in the same manner as Social Security retirement benefits
Tax free if received as an offset to a disability policy
Always tax free
(You Answered) Always includible in gross income at 85%
Question 5
Correct
Under the VCSP program, which statement is not correct?
Employers must have consistently classified workers.
(You Answered) (Correct Answer) Employers must agree to extend the statute of limitations.
Employers are protected from audit for past years.
Employers must pay a modest cost for participation.
Question 6
Correct
A person works for a corporation as an employee. She also provides consulting services to the same corporation as an independent contractor. According to the IRS, how must this worker be classified?
Only as an employee
Only as an independent contractor
(You Answered) (Correct Answer) As both an employee and an independent contractor under the right circumstances
Whichever way the corporation chooses
Question 7
Correct
Food and beverage establishments must take what action with respect to service charges?
Treat them the same as tips.
Ignore service charges.
Implement IRS rules for 2013.
(You Answered) (Correct Answer) Implement IRS rules by January 1, 2014.
Question 8
Correct
In light of court action with respect to FICA on SUB pay, what is happening now?
Employers are receiving tax refunds.
(You Answered) (Correct Answer) Employers are filing protective refund claims.
Employers are waiting to see whether the U.S. Supreme Court rules on the matter.
Employers have given up on the ability to obtain tax refunds.
Question 9
Correct
The “repair” regulations are effective for:
2012
2013
(You Answered) (Correct Answer) 2014
2015
Question 10
Correct
Which of the following issues have been identified as tax “problems” in the National Taxpayer Advocate’s annual report?
Complexity
Identity theft
Perception of unfairness
(You Answered) (Correct Answer) All of the above