R2 INDV TAX - Adj, Ded, Credits 4 (M)

Question 1

AMT Adjustments included in deductions for regular tax purposes (TIMME)

Answer 1

Tax "Deductions"
Interest Deductions on Some Home Equity Loans
Medical Deductions
Miscellaneous Deductions Not Allowed
Exemptions and Standard Deduction

Question 2

Tax Preference Items (PPP)

Answer 2

Are always add-backs
Private Activity Bond Interest Income (on certain bonds)
Percentage Depletion the excess over adjusted basis of property
Pre-1987 accelerated depreciation

Question 3

Credit for Prior Year Minimum Tax

Answer 3

It may only reduce regular tax, not future AMT and carry forward is forever

Question 4

AMT Credits (FACCE)

Answer 4

Foreign Tax Credit
Adoption Credit
Child Tax Credit
Contributions to Retirement Plans Credit
Earned Income Credit

Question 5

Estimated Taxes - Required Minmum

Answer 5

A taxpayer is required to make estimated tax payments if both the following conditions are met
$1,000 or More Tax Liability
Inadequate Tax Estimates

Question 6

Inadequate Tax Payments

Answer 6

If the taxpayer’s withholding is less than the lesser of
90% of current year’s tax, or;
100% of last year’s tax
If a taxpayer had AGI in excess of $150,000 in the prior year, 110%of the prior year’s tax liability is used

Question 7

Statute of Limitations on Assessments

Answer 7

The statutory period in which a government can assess an additional tax
Three years from the later of
the due date of the return
the date the return in filed

Question 8

25% Understatement of Gross Income

Answer 8

Six years from the later of
the due date of the return
the date the return is filed

Question 9

Fraud and False Returns

Answer 9

There is no statute of limitations for fraud or filing false returns

Question 10

Refunds for Individuals - Bad debts, worthless securities

Answer 10

Seven years from the later of
the due date of the return
the date the return is filed

Question 11

Form 1139

Answer 11

Used to claim a refund on corporate income taxes

Question 12

Form 1045

Answer 12

Used to request a quick refund of individual income taxes due to the carryback of a net operating loss

Question 13

Form 843

Answer 13

Used to request a refund of taxes other than income tax

Question 14

The Annualization Method

Answer 14

In computing the estimated payments due, an individual taxpayer may pay 90% of current year’s tax

Question 15

Form 1040x

Answer 15

An individual amended tax return which is filed within three years of the date of the original return was filed or within two years of the date the tax was paid, whichever is later