Tax Forms and Procedures Flashcards

An employer must deposit federal payroll taxes by what general deadline for monthly depositors?

Answer: The 15th of the following month

Monthly depositors must deposit payroll taxes by the 15th day of the month following the payroll month.

Form 941 is filed by employers to report:

Answer: Quarterly payroll taxes including income tax withheld and FICA

Form 941, Employer's Quarterly Federal Tax Return, reports wages paid, federal income tax withheld, and employer/employee FICA taxes each quarter.

What is the penalty for failing to file Form 1040 on time (without an extension)?

Answer: 5% per month on unpaid tax (up to 25%)

The failure-to-file penalty is 5% of unpaid tax per month (up to 25%), significantly larger than the failure-to-pay penalty of 0.5% per month.

Which form is used by nonresident aliens to file a US income tax return?

Answer: Form 1040-NR

Form 1040-NR is the US Nonresident Alien Income Tax Return for foreign nationals with US-source income.

A taxpayer receives a CP2000 notice from the IRS. What does this indicate?

Answer: There is a discrepancy between reported income and third-party information

A CP2000 is an IRS automated underreporter notice proposing changes when income or deductions on the return don't match third-party documents.

The IRS statute of limitations to assess additional tax is generally how long from the due date of the return?

Answer: 3 years

The IRS has 3 years from the later of the return due date or filing date to assess additional taxes, with exceptions for substantial understatements and fraud.