Question 1

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

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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?

Accepted Answer

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

Question 13

What is considered evidence for income?

Accepted Answer

Bank statements are considered evidence of income.

Question 14

Amended tax returns from 2019 and forward can be?

Accepted Answer

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?

Accepted Answer

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

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