Tax Preparation Tax Forms and Procedures

Question 1

What is the standard due date for individual tax returns (Form 1040) for calendar-year taxpayers?

Accepted Answer

April 15

Answer

Form 1040 is due on April 15 for calendar-year individual taxpayers; if April 15 falls on a weekend or holiday, it shifts to the next business day.

Question 2

Form 4868 grants an automatic extension to file Form 1040 for how many months?

Accepted Answer

6 months

Answer

Form 4868 grants an automatic 6-month extension to file (not to pay), extending the filing deadline to October 15.

Question 3

Which form is used to report the additional 10% early withdrawal penalty on retirement account distributions?

Accepted Answer

Form 5329

Answer

Form 5329 is used to calculate and report the 10% additional tax on early distributions from qualified retirement plans.

Question 4

A taxpayer needs to correct an error on a previously filed Form 1040. Which form do they use?

Accepted Answer

Form 1040-X

Answer

Form 1040-X, Amended U.S. Individual Income Tax Return, is used to correct errors or make changes to a previously filed return.

Question 5

Which schedule reports capital gains and losses from the sale of investments?

Accepted Answer

Schedule D

Answer

Schedule D is used to report capital gains and losses from the sale or exchange of capital assets such as stocks and real estate.

Tax Preparation Practice Test