Tax Consulting Tax Compliance and Reporting

Question 1

What is the penalty for failing to file a tax return on time, absent reasonable cause?

Accepted Answer

5% per month on unpaid tax, up to 25%

Answer

0.5% per month on unpaid tax, up to 25%

Answer

10% flat penalty on total tax owed

Answer

$1,000 fixed fine per return

Question 2

Which IRS form is used to report miscellaneous income paid to non-employees, such as independent contractor payments of $600 or more?

Accepted Answer

Form 1099-NEC

Answer

Form W-2

Answer

Form 1099-MISC

Answer

Form 1096

Question 3

What is the statute of limitations for the IRS to assess additional tax on a timely filed return in most cases?

Accepted Answer

3 years

Answer

1 year

Answer

6 years

Answer

10 years

Question 4

An amended tax return must be filed using which IRS form?

Accepted Answer

Form 1040-X

Answer

Form 4868

Answer

Form 8275

Answer

Form 1040-SR

Question 5

Which penalty applies when a tax preparer fails to meet due diligence requirements for the Earned Income Tax Credit?

Accepted Answer

$600 per credit claimed per return

Answer

$50 per return

Answer

$100 per return

Answer

$5,000 per return

Question 6

What does a Form 8868 extend?

Accepted Answer

Tax-exempt organization return deadline

Answer

Individual income tax return deadline

Answer

Estate tax return deadline

Answer

Partnership return deadline