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Ficep cuna final review exam QUESTIONS AND ANSWERS (2024/2025) (VERIFIED ANSWERS)
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Ficep cuna final review exam QUESTIONS AND ANSWERS (2024/2025) (VERIFIED ANSWERS)
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Ficep cuna final review exam1. Select the statement that correctly describes a progressive tax.: A
progres- sive tax requires people to pay more as they earn more.
2. Pick the statement that best describes a regressive tax.: A regressive
tax charges the same tax rate regardless of the taxpayer's income.
3. Why are government fees and surcharges sometimes described as a
form of tax?: Because they generate income for the government.
4. Which taxing authorities are worthy of the member's attention?: The
mem- ber must attend to all tax authorities at all levels of government
to maintain their financial well-being.
5. How do taxes impact your personal spending?: Taxes can make
personal spending go up or down.
6. Which is larger: the penalty for failing to pay federal income taxes on time,
or the penalty for failing to file a tax return when taxes are owed?: The
,penalty for failing to file a tax return is significantly higher.
7. What is the right attitude to take toward taxes to protect your
financial well-being?: Taxes are an essential financial responsibility.
8. When is the IRS most likely to impose the maximum penalty on
taxpayers?-
: When they are forced to track down the taxpayer.
9. What is a good rule to follow when dealing with a tax auditor or
another issue involving the IRS?: Never assume the IRS is always
correct.
10.What is the financial counselor's role in aiding members with complex
tax issues?: The counselor provides basic information and refers
members to tax programs or tax experts.
11.What happens when taxpayers who file a late return for any or all of the 4
most recent tax years are owed a refund?: No penalty is charged and the
taxpayer gets the full refund amount.
,12.What tax services are provided by the Volunteer Income Tax Assistance
(VITA) program?: Free tax return assistance to low- or moderate-income
taxpayers.
13.What benefit is offered when VITA services are combined with credit
union programs that encourage taxpayers to open accounts for direct
deposit of tax refunds?: Direct deposit reduces the time required to get a
refund, which counters the appeal of refund anticipation loans.
14.What is the name of the organization that offers free tax assistance to
taxpayers age 60 or older, those with disabilities or special needs, or who
qualify for earned income or homestead tax credits?: Tax Counseling for
the Elderly (TCE)
15.What percent of tax payers are eligible to use the "Free File Online"
service offered as a partnership between the IRS and tax software
companies?: 70% are eligible
, 16.When members use tax refunds to pay down debts, which debts
should be paid first?: Always pay the debts with high interest rates or
that could prompt garnishments.
17.How have education, information, and direct deposit programs impacted
taxpayers' use of refund anticipation loans?: The use of refund anticipation
loans is decreasing.
18.What rule of thumb should be used when defining taxable income?: If
you benefit financially, you are likely to be taxed for it.
19.Which type of qualified IRA withdrawal is exempt from income tax?:
Roth IRA withdrawals are exempt.
20.How do different tax authorities treat items excluded from federal
taxable income?: Exclusions vary from state to state.
21.What is the first step for effectively managing income taxes?:
Determining your filing status.
22.What should be the goal of managing a taxpayer's income tax
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