Question

1) If the taxpayer thinks he or she owes the estimated tax penalty, but does not want to figure it when he or she files the tax return, the taxpayer may not have to. Generally, the IRS will figure the penalty for him or her and send a bill. The taxpayer only needs to figure his or her penalty in which of the following situations?

a. The taxpayer is requesting a waiver of part, but not all, of the penalty

b. The taxpayer is using the annualized income installment method to figure the penalty

c. The taxpayer is treating the Federal income tax withheld from his or her income as paid on the dates actually withheld

d. All of the above

2) All of the following are true regarding the 1099 series forms except:

a. If the taxpayer received the types of income reported on some forms in the 1099 series, he or she may not be able to use Form 1040A or Form 1040EZ

b. Most forms in the 1099 series should be furnished to the taxpayer by January 31

c. The requirement to file 1099 series forms is mandated by the Internal Revenue Service

d. Estates and trusts that make reportable transactions during the calendar year are not required to file 1099 series forms

3) All of the following are requirements to claim head of household filing status except:

a. The taxpayer’s parent must live in his or her home at least 6 months

b. The taxpayer is unmarried or considered unmarried on the last day of the year

c. A qualifying person lived with the taxpayer over half the year

d. The taxpayer’s spouse did not live in his or her home during the last 6 months of the tax year

4) If the taxpayer files a separate return in a community property state, he or she and his or her spouse must each report half of their combined community income and deductions in addition to their separate income and deductions. Each of the taxpayers must complete and attach which form to the Form 1040 showing how he or she figured the amount he or she is reporting on the return?

a. Form 8889

b. Form 8917

c. Form 8949

d. Form 8958

Answer 1

1. answer is option D All of the above

The taxpayer only needs to figure his or her penalty in the following three situations:

The taxpayer is requesting a waiver of part, but not all, of the penalty.

The taxpayer is using the annualized income installment method to figure the penalty.

The taxpayer is treating the Federal income tax withheld from his or her income as paid on the dates     actually withheld.

2. answer is option D Estates and trusts that make reportable transactions during the calendar year are not required to file 1099 series forms

Estates and trusts that make reportable transactions during the calendar year must file information returns to report those transactions to the IRS using 1099 series forms

3. answer is otpion D The taxpayer’s spouse did not live in his or her home during the last 6 months of the tax year

to qualify household you not be considered as unmarried during that years but when wife is away from the taxpayer due to a temporary circumstance, such as military service, business trips, a stay in a medical treatment facility, or attendance at college, they are still considered as legally married

4. answer is option D Form 8958

form 8958 is used for Allocation of Tax Amounts Between Certain Individuals in Community Property States