Enrolled Agent Exam - Part 2 Business Questions with Correct Answers
0 view 0 purchase
Course
EA - Enrolled Agent
Institution
EA - Enrolled Agent
Solo Proprietorship - Answer-can't be passed to a new owner, must be sold
qualified joint venture - only married couples business
-file separate Schedules C and separate Schedule SE
Statutory employees, disregarded entities also must file Schedule C
Partnerships - Answer--must have at l...
Enrolled Agent Exam - Part 2 Business
Questions with Correct Answers
Solo Proprietorship - Answer-can't be passed to a new owner, must be sold
qualified joint venture - only married couples business
-file separate Schedules C and separate Schedule SE
Statutory employees, disregarded entities also must file Schedule C
Partnerships - Answer--must have at least 1 general partner
joint undertaking to share expenses is not a partnership
From 1065 amd K-1 to each partner (not W 2)
limited partner may not sign return or represent before IRS
Limited Liability Partnership (LLC) partner only at risk for his interest in partnership
assets
C Corporations - Answer-From 1120
board of directors oversight of company and has shareholders
S Corporations - Answer-S corp must
-be domestic
-shareholders (may not be partnerships, corporations, non resident aliens)
-no more than 100 shareholders
-one class of stock (voting and non are same stock)
-not be ineligible type corporation
Limited Liability Companies (LLC) - Answer-taxed as partnership
corporation protection and avoids double taxation
Personal Service Corporations (PSC) - Answer-taxed at flat rate of 35%
CLOSELY HELD CORP
-can offset passive losses with any active income
PERSONAL SERVICE CORP can't offset passive losses with any active income
when at least 95% of stock held by owners performing personal services.
Farmers and Fishermen - Answer-may be partnership or corporation
, Tax-Exempt Orgs (non profit entities) - Answer-Form 1023 application for regognition of
exemption
by default non profit: churches, synagogues, mosques, temples
Form 990 file annually
Entity Classification Election Rules - Answer-can choose to be classified for tax
purposes
not before 75 days or after 12 months.
election cannot be changed for 5yrs (60 months)
Employer Identification Number (EIN) - Answer-Request for EIN From SS-4
must have if:
have employees
excise tax
alcohol, tobacco, firearms
If solo no employees, not required EIN
Business Recordkeeping - Answer-Later of 3 years when due or filed
payroll employment info 4 years
Income Statement
Balance Sheet
Business Reporting Requirements - Answer-Form 8300 - cash transaction $10,000 or
more (report 15th day after day of transaction)
W-4 employee's withholding allowance certificate
W-2 wages and tax statement (if file over 250 must file electronically)
Form 1099 contractors, self employed if paid $600 or more (no need for one if personal
payments, paint my house)
Employment Taxes and Self-Employment Tax - Answer-Form 944
SS 6.2% Medicare 1.45%
Additional Medicare Tax 0.9%
if not file 944, must file 941 each quarter regardless if paid wages or not
Only Options: by Mail or E-file
Trust Fund Recovery Penalty (TFRP) - Answer-penalty 100% can apply to everyone
who is responsible.
responsible and willfully fails
Federal Unemployment (FUTA) Tax - Answer-6% on first $7,000 of each employee
can later get credit of 5.4% on Form 940 so true tax is 0.6%
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
