Tax Consulting Registered Tax Return Preparer 5

Question 1

What is the deadline for an individual calendar-year taxpayer to file Form 1040 without an extension?

Accepted Answer

April 15 (or next business day)

Answer

Individual returns are due April 15, or the next business day if it falls on a weekend or holiday.

Question 2

Which form requests an automatic extension of time to file an individual return?

Accepted Answer

Form 4868

Answer

Form 4868 grants an automatic six-month extension to file an individual return.

Question 3

A taxpayer wants to correct a return already filed. Which form is used?

Accepted Answer

Form 1040-X

Answer

Form 1040-X is used to amend a previously filed individual income tax return.

Question 4

What does the term 'Adjusted Gross Income' (AGI) represent?

Accepted Answer

Gross income minus specific above-the-line adjustments

Answer

AGI is gross income reduced by above-the-line adjustments, before deductions and credits.

Question 5

A preparer must retain copies of returns or a client list for how long under federal rules?

Accepted Answer

At least 3 years

Answer

Preparers must keep a copy of each return or a list of clients for at least three years.

Tax Consulting Practice Test