P-1 Preparing Returns (Taxpayer supporting documentation and Efile process)

Question 1

How long must a taxpayer with employees keel all employment tax records?

Answer 1

A taxpayer with employee must keel all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later.

Question 2

What is the period of limitation if a taxpayer do not report income and it is more than 25% of the gross income shown on a return?

Answer 2

if a taxpayer do not report income and it is more than 25% of the gross income shown on a return then the period is 6 years

Question 3

What is the period of limitation if a taxpayer file a fraudulent return?

Answer 3

if a taxpayer file a fraudulent return then there is no limit to the period.

Question 4

What is the period of limitation if a taxpayer do not file a return?

Answer 4

if a taxpayer do not file a return then there is no limit to the period

Question 5

What is the period of limitation if a taxpayer file a claim for credit or refund after filing a return?

Answer 5

if a taxpayer file a claim for credit or refund after filing a return then the period is the later of 3 years or 2 years after tax was paid.

Question 6

What is the period of limitation if a taxpayer File a claim for a loss from a bad debt or worthless securities?

Answer 6

if a taxpayer File a claim for a loss from a bad debt or worthless securities then the period is 7 years.

Question 7

If a taxpayer owes additional tax a no other rules apply what is the period of limitation?

Answer 7

If the taxpayer owes additional tax and no other rules apply then the period of limitation is 7 years.

Question 8

Must a tax preparer review and verify each document that supports the items a taxpayer claims on his tax return?

Answer 8

No, but the tax preparer should advise the taxpayer that the IRS can review and examine each document.

Question 9

A taxpayer who timely filed a return wants to claim a loss for worthless securities. Until when can he do so?

Answer 9

The taxpayer can file seven years from the due date of the return.

Question 10

When can a fraudulent return be examined by the IRS?

Answer 10

A fraudulent return can be examined at any time.

Question 11

If claim a loss for worthless securities, how long should you keep your tax records?

Answer 11

If you claim a loss for worthless securities, you should keep your tax records for 7 years.

Question 12

If you owe additional tax, how long should you keep your tax records?

Answer 12

If you owe additional tax, you should keep your tax records for 3 years.

Question 13

What is considered evidence for income?

Answer 13

Bank statements are considered evidence of income.

Question 14

Amended tax returns from 2019 and forward can be?

Answer 14

Amended tax returns from 2019 forward can be e-filed

Question 15

The ERO must maintain forms W-2, W-2g, 1099-R for how long?

Answer 15

The ERO must maintain forms W-2, W-2g, 1099-R until the end of the calendar year.

Question 16

The ERO must maintain a copy of signed IRS e-file consent to disclosure forms for how long?

Answer 16

The ERO must maintain a copy of signed IRS e-file consent to disclosure forms until the end of the year.

Question 17

The ERO must maintain a complete copy of the electronic portion of the return that can be readily and accurately converted into an electronic transmission that the IRS can process for how long?

Answer 17

The ERO must maintain a complete copy of the electronic portion of the return that can be readily and accurately converted into an electronic transmission that the IRS can process

Question 18

The ERO must maintain the acknowledgement file for IRS accepted returns for how long?

Answer 18

The ERO must maintain the acknowledgement file for IRS accepted returns until end of the year.