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Enrolled Agent Exam - Part 2 Business Questions and Answers
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Enrolled Agent Exam - Part 2 Business Questions and Answers
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Enrolled Agent Exam - Part 2: BusinessQuestions and Answers
(UNIT i1) iBusiness iand iRequirements i- iCorrect iAnswers i-...
Solo iProprietorship i- iCorrect iAnswers i-can't ibe ipassed ito ia inew iowner, imust ibe isold i
qualified ijoint iventure i- ionly imarried icouples ibusiness i
-file iseparate iSchedules iC iand iseparate iSchedule iSE
Statutory iemployees, idisregarded ientities ialso imust ifile iSchedule iC
Partnerships i- iCorrect iAnswers i--must ihave iat ileast i1 igeneral ipartner
joint iundertaking ito ishare iexpenses iis inot ia ipartnership
From i1065 iamd iK-1 ito ieach ipartner i(not iW i2)
limited ipartner imay inot isign ireturn ior irepresent ibefore iIRS
Limited iLiability iPartnership i(LLC) ipartner ionly iat irisk ifor ihis iinterest iin ipartnership
iassets
C iCorporations i- iCorrect iAnswers i-From i1120
board iof idirectors ioversight iof icompany iand ihas ishareholders
S iCorporations i- iCorrect iAnswers i-S icorp imust
-be idomestic
-shareholders i(may inot ibe ipartnerships, icorporations, inon iresident ialiens)
-no imore ithan i100 ishareholders
-one iclass iof istock i(voting iand inon iare isame istock)
-not ibe iineligible itype icorporation
Limited iLiability iCompanies i(LLC) i- iCorrect iAnswers i-taxed ias ipartnership
corporation iprotection iand iavoids idouble itaxation
Personal iService iCorporations i(PSC) i- iCorrect iAnswers i-taxed iat iflat irate iof i35%
CLOSELY iHELD iCORP
,-can ioffset ipassive ilosses iwith iany iactive iincome
PERSONAL iSERVICE iCORP ican't ioffset ipassive ilosses iwith iany iactive iincome
when iat ileast i95% iof istock iheld iby iowners iperforming ipersonal iservices.
Farmers iand iFishermen i- iCorrect iAnswers i-may ibe ipartnership ior icorporation
Tax-Exempt iOrgs i(non iprofit ientities) i- iCorrect iAnswers i-Form i1023 iapplication ifor
iregognition iof iexemption
by idefault inon iprofit: ichurches, isynagogues, imosques, itemples
Form i990 ifile iannually
Entity iClassification iElection iRules i- iCorrect iAnswers i-can ichoose ito ibe iclassified ifor
itax ipurposes
not ibefore i75 idays ior iafter i12 imonths.
election icannot ibe ichanged ifor i5yrs i(60 imonths)
Employer iIdentification iNumber i(EIN) i- iCorrect iAnswers i-Request ifor iEIN iFrom iSS-4
must ihave iif:
have iemployees
excise itax
alcohol, itobacco, ifirearms
If isolo ino iemployees, inot irequired iEIN
Business iRecordkeeping i- iCorrect iAnswers i-Later iof i3 iyears iwhen idue ior ifiled i
payroll iemployment iinfo i4 iyears
Income iStatement
Balance iSheet
Business iReporting iRequirements i- iCorrect iAnswers i-Form i8300 i- icash itransaction
i$10,000 ior imore i(report i15th iday iafter iday iof itransaction)
W-4 iemployee's iwithholding iallowance icertificate
W-2 iwages iand itax istatement i(if ifile iover i250 imust ifile ielectronically)
Form i1099 icontractors, iself iemployed iif ipaid i$600 ior imore i(no ineed ifor ione iif
ipersonal ipayments, ipaint imy ihouse)
Employment iTaxes iand iSelf-Employment iTax i- iCorrect iAnswers i-Form i944
SS i6.2% iMedicare i1.45%
Additional iMedicare iTax i0.9%
if inot ifile i944, imust ifile i941 ieach iquarter iregardless iif ipaid iwages ior inot
Only iOptions: iby iMail ior iE-file
, Trust iFund iRecovery iPenalty i(TFRP) i- iCorrect iAnswers i-penalty i100% ican iapply ito
ieveryone iwho iis iresponsible. i
responsible iand iwillfully ifails
Federal iUnemployment i(FUTA) iTax i- iCorrect iAnswers i-6% ion ifirst i$7,000 iof ieach
iemployee
can ilater iget icredit iof i5.4% ion iForm i940 iso itrue itax iis i0.6%
Employee iand iWorker iClassification i- iCorrect iAnswers i-Test: ibehavior icontrol,
ifinancial icontrol, itype iof irelationship
employee
statutory iemployee i- ilife iinsurance isalespeople, itraveling isalespeople, idirector iof
icorps, icommissioned itruck idrivers,
statutory inon iemployee i- idirect isales iand ilicensed ireal iestate iagents
independent icontractor
Employing iFamily iMembers i- iCorrect iAnswers i-corp, iestate, ipartnership iwith ione
iparent ia ipartner
-child ipayment isubject ito iall itaxes
Solo ior ieach iis ipartner iin ipartnership
under i18 ionly iincome itax iwithheld
under i21 ino iFUTA itax iwithheld
(UNIT i2) iAccounting iPeriods iand iMethods i- iCorrect iAnswers i-...
Tax iYear i- iCorrect iAnswers i-short itax iyear iless ithan i12 imonths. itaxpayers ideath
imarks iend iof ifinal itax iyear
Required iTax iYear i- iCorrect iAnswers i-used iby ipartnerships, iS icorps iand iPSC. i50%
ior imore iof ipartners imust iuse ithat irequired itax iyear
Section i444 iElection i- iCorrect iAnswers i-request ito iuse iother ithan irequired itax iyear
Filing iDue iDates ifor iEntities i- iCorrect iAnswers i-CORP imarch i15, i15th iday iof ithird
imonth
INDIV iand iPartnerships iapril i15
Non iProfit imay i15
Accounting iMethods i- iCorrect iAnswers i-Cash, iAccrual, iSpecial, iHybrid
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