These are some sample questions for the Register Tax Return Preparer Test
1. For purposes of the Earned Income Credit, a qualifying
child is a child who...
a.
is over age 24 at the end of 2010 and not permanently
and totally disabled
b.
has lived with you in the United States for at least 12
months
c.
is filing a joint return
d.
meets the relationship test
2.
A taxpayer should itemize deductions if the taxpayer’s
total itemized deductions are...
a.
less than the taxpayer’s interest income
b.
more than the taxpayer’s standard deduction
c.
equal to the taxpayer’s self employment tax
d.
double the taxpayer’s unemployment compensation
3.
Which of the following payments are generally taxable?
a.
Qualified disaster relief payments
b.
VA benefits
c.
Unemployment compensation
d.
Payments from a government welfare fund based on need
4.
The distributions made to a taxpayer from a traditional
IRA are less than the required minimum distribution for the year. The amount of
excise tax that the taxpayer may have to pay on the amount not distributed is
a.
75%
b.
50%
c.
25%
d.
10%
5.
Self-employment tax applies to which of the following?
a.
Individuals who report only interest and dividend
income
b.
Corporations that report less than $50,000 in gross
receipts
c.
Independent contractors reporting net earnings from
self-employment of $100
d.
Independent Contractors reporting net earnings from
self-employment of $400 or more
6.
A taxpayer can make an adjustment to income on Form
1040 for which of the following?
a.
Deductible part of self–employment tax from Schedule SE
b.
Medical expenses
c.
Excess social security and tier 1 Railroad Retirement
Tax
d.
Prior year federal income tax paid
7.
Which of the following statements regarding tip income
is true?
a.
If you are an indirectly tipped employee (for example,
a busser or bartender) you are not required to report tips to your employer.
b.
Any tips you reported to your employer are to be
included in the wages in box 1 (Wages, tips, other compensation) of your Form
W-2.
c.
If the only tips you receive in a month are charged
tips (for example, credit and debit card charges) distributed to you by your
employer, you are not required to report these tips to your employer.
d.
You must report the value of any noncash tips, such as
tickets and passes, to your employer.
8.
An unmarried taxpayer provides all of the support
necessary for an elderly parent to live independently in a separate home. The
taxpayer is claiming the parent as a dependent. Which of the following filing
statuses is the taxpayer allowed to use when filing and generally will be the
most advantageous for the taxpayer to use?
a.
Single
b.
Head of household
c.
Qualifying widow
d.
Married filing separately
9.
A taxpayer goes to a casino and wins $10,000. The
casino withholds $500 for Federal income taxes. What is the proper tax
treatment by the taxpayer?
a.
The taxpayer must report the winnings and can claim the
amount of Federal income tax withheld on Form 1040
b.
The taxpayer does not have to report the winnings
because the taxpayer did not receive a Form 1099G from the casino
c.
The taxpayer is not required to report the winnings on
the taxpayer’s Form 1040 unless the taxpayer wants to claim the withholding on
the Form 1040
d.
The taxpayer must report the winnings on the taxpayer’s
Form 1040, but the taxpayer may not claim the amount of Federal income tax
withheld unless the taxpayer itemizes deductions
10. The
IRS rejected a taxpayer’s return when the taxpayer attempted to e-file the
return. When resubmitting the rejected return as a paper return, the taxpayer
must file the return
a.
by the due date for filing the return or 20 calendar
days after the return was rejected
b.
by the due date for filing the return or 5 calendar
days after the return was rejected
c.
by the due date for filing the return or 10 calendar
days after the return was rejected
d.
by the due date for filing the return or 30 calendar
days after the return was rejected
11. When
the IRS rejects a return that an Electronic Return Originator (ERO) attempted
to e-file for a taxpayer, the ERO must advise the taxpayer of the rejection and
provide the taxpayer with the
a.
IRS Customer Service phone number for assistance
b.
Declaration Control Number
c.
IRS code section
d.
rejected code, accompanied by an explanation
12. A
Form 8453 must be submitted to the IRS after acceptance of an e-filed return
when
a.
an agent possessing a Form 2848 electronically signs
the return
b.
the taxpayer’s signatures are inconsistent
c.
the charitable deductions claimed on the return exceed
$50.00
d.
the agent provides the taxpayer with a copy of the tax
return
13. The
declaration of representative accompanying a power of attorney must be signed
under penalties of perjury with the representative declaring that
a.
the taxpayer is aware of the Circular 230 regulations.
b.
the representative has never been under suspension or
disbarment from practice before the Internal Revenue Service.
c.
the representative is authorized to represent the
taxpayer identified in the power of attorney for the matters specified therein.
d.
the taxpayer is unable to represent himself or herself.
14. A
taxpayer paid mortgage interest of $15,827 on another person’s home in which
the taxpayer had no ownership interest. How much of the interest may the
taxpayer deduct?
a.
$0
b.
$5,000
c.
$10,000
d.
$15,827
15. In
the current year, the taxpayer paid $5,000 in mortgage interest on a primary
residence, $1,500 mortgage interest on a vacation home, and $2,000 in loan
interest on a recreational vehicle with sleeping, cooking, and toilet
facilities. What is the taxpayer's maximum mortgage interest deduction?
a.
$5,000
b.
$6,500
c.
$7,000
d. $8,500
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