Tax Prep Basic Test Questions With Accurate Correct Answers 100% Guaranteed Success.
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Course
TAX.
Institution
TAX.
Only volunteers who prepare and review tax returns are required to complete the Volunteer Standards of Conduct Training and certification. - correct answer False
Volunteers are generally held liable for the tax returns they prepare at VITA/TCE sites. - correc...
Only volunteers who prepare and review tax returns are required to complete the Volunteer Standards
of Conduct Training and certification. - correct answer False
Volunteers are generally held liable for the tax returns they prepare at VITA/TCE sites. - correct answer
False
Volunteers are not required to complete a return if they have concerns about the accuracy of
information provided by the taxpayer or other concerns. - correct answer True
1. To determine if a taxpayer must file a tax return, do you need to know their income for the year, filing
status, and place of birth? - correct answer No- You need to know their
approximate income, likely filing status, and age.
If a taxpayer cannot obtain a valid Social Security number and has not yet applied for an taxpayer
identification number, can you use the taxpayer's driver's license or passport instead? - correct answer
No- Taxpayers must have a valid Social Security number or taxpayer identification number before you
can assist them.
A taxpayer cannot use a valid ITIN if it was not used on a federal tax return at least once in the last three
years. - correct answer Yes- ITINs that have not been used on a federal tax return at
least once in the last three consecutive years will no longer be valid for use on a tax return unless
renewed by the taxpayer.
Are the only acceptable means of verifying taxpayers's identity a valid U.S. drivers license, passport, or
military ID? - correct answer No- Other acceptable means are a current state ID,
visa, national ID, employer ID, school ID or other proof of taxpayer identification.
If the taxpayer with a valid Social Security number (SSN) receives a Form W-2 with an incorrect SSN, can
you prepare the return using that W-2? - correct answer Yes- You can use the
original W-2 to prepare the return, but the taxpayer needs to request a corrected Form W-2 from the
employer before submitting the tax return.
,If a taxpayer with an individual taxpayer identification number (ITIN) receives a Form W-2 with an
erroneous Social Security number (SSN), is it acceptable to e-file the return as long as you enter the
correct ITIN on the return and the mismatched SSN exactly as shown on the Form W-2 issued? - correct
answer Yes- Taxpayers who file tax returns using their ITINs often have Forms W-2
showing erroneous SSNs, and it's acceptable to e-file the return if you enter the correct ITIN on the
return and the mismatched SSN exactly as shown on the Form W-2 issued.
Bob is 27 years old. No one can claim him as a dependent. His gross income was $17,000 during the tax
year. Based only on this information, Bob is required to file a tax return. - correct answer
True
Individuals who are not required to file a tax return should file a return if they can claim the earned
income credit. - correct answer True
A driver's license can be used to verify a taxpayer's Social Security number and correct name spelling. -
correct answer False
Taxpayers age 65 or older must use Form 1040-SR instead of Form 1040 to file their return. - correct
answer False
You are clarifying Larry's Form 13614-C. Larry is at a VITA/TCE site to have his taxes prepared. He
completes Form 13614-C and tells the tax preparer:
He is 26 years old
His filing status is Head of Household
He wants to claim his 2-year-old nephew for EITC
He has no child care expenses
He earned $19,000 in wages
Do you think it's safe to rely on good faith for Larry's information? - correct answer
No, Larry's situation requires more inquiry
Based on the information you will learn in the course, Larry's information regarding his qualifying child
and filing status is questionable. Further inquiries should include:
Why is the uncle claiming the child and not the parents?
, Why isn't there child care expense and who cares for the child while the taxpayer works?
Is there anyone else living in the household that contributes?
Is there anyone else eligible to claim the child?
Do the tie-breaker rules apply?
If asked, can the taxpayer provide proof that the qualifying child lived with him for more than half of the
year?
You are clarifying Steven's Form 13614-C. Steven is at a VITA/TCE site to have his taxes prepared. He
completes Form 13614-C and tells the tax preparer:
He is 22 years old
He has two sons, ages 10 and 11
He has Social Security cards for both boys and himself
His W-2 wage indicates earnings of $20,000
Do you think it's safe to rely on good faith for Steven's information? - correct answer
No, Steven's situation requires more inquiry
Steven's age and the age of the qualifying children appear to be inconsistent. Further inquiries are
needed to determine:
Are the boys his sons by birth, foster sons, adopted sons, step-sons?
Is there anyone else eligible to claim the children as qualifying children?
Do the tie-breaker rules apply?
If asked, can the taxpayer provide proof that the qualifying children lived with him for more than half of
the year?
You are helping a taxpayer who has given you two different Social Security numbers. Then, he tells you
he has two children, but later corrects it to three. You are concerned about the truthfulness of this
information. You should _____. - correct answer Decline to prepare the tax return-
If you suspect an individual is not providing truthful information, you should refuse to prepare the tax
return.
True or False? It is perfectly acceptable to accept a taxpayer's invitation to lunch as a thank you for
preparing his or her tax return. - correct answer False- Although lunch is not a
monetary "payment" for services rendered, some may interpret it as such. It is best to politely decline
such offers in order to maintain the integrity of the VITA/TCE programs.
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