Financial Accounting  >  QUESTIONS & ANSWERS  >  Income Tax School Comprehensive Module 2: Final Exam [ALL CORRECT SOLUTIONS] (All)

Income Tax School Comprehensive Module 2: Final Exam [ALL CORRECT SOLUTIONS]

Document Content and Description Below

Don is a single parent. His son is 19 (not a student), and his daughter is 17 (still a student). Don claimed EIC on his tax return for both children. He later received a letter from the Internal Reve ... nue Service which disallowed EIC for his son. The letter also stated that Don’s claim was an error due to reckless or intentional disregard of the EIC rules. For how many years will Don be denied EIC? a) 10 years b) 5 years c) 2 years d) 1 year 2. Last year Rick fraudulently claimed his cousin’s children as dependents on his return to receive earned income credit. The IRS discovered this when Rick’s cousin also claimed the children. Rick’s cousin was able to prove he had the right to claim his children, and the EIC was denied on Rick’s return. How long will EIC be prohibited if a taxpayer is denied EIC due to fraud? a) 10 years b) 5 years c) 2 years d) 1 year 3. Walt was a tax preparer who neglected to complete Form 8867 or record information needed for the return Rick fraudulently claimed the children for EIC purposes. After the IRS proved Rick had committed fraud, it was shown that Walt failed to exercise due diligence. What penalty will a tax preparer face if it is determined that he failed to exercise due diligence? a) $540 per return b) $540 per failure to comply c) $540 per year d) $540 per taxpayer and per return 4. In which of the following scenarios does the taxpayer fail to meet the residency test for EIC purposes? a) A taxpayer whose child lived with him for 5 months and 28 days b) A taxpayer whose eligible foster child lived with him all year c) A taxpayer whose child lived with him all year. He and his spouse separated on May 29. d) A taxpayer who is 64 years old and lived in the United States for more than half of the year 5. Trudy lives with her two children (ages 16 and 12), and her filing status is Head of Household. Trudy’s earned income and AGI was $31,000. Is Trudy eligible for EIC? a) Yes b) No, the taxpayer’s earned income is not within the range to receive EIC. c) No, the taxpayer’s children do not meet the age test to be a qualifying child. d) No, the taxpayer is not eligible due to her filing status. [Show More]

Last updated: 2 years ago

Preview 1 out of 16 pages

Buy Now

Instant download

We Accept:

Payment methods accepted on Scholarfriends (We Accept)
Preview image of Income Tax School Comprehensive Module 2: Final Exam [ALL CORRECT SOLUTIONS] document

Buy this document to get the full access instantly

Instant Download Access after purchase

Buy Now

Instant download

We Accept:

Payment methods accepted on Scholarfriends (We Accept)
Report Copyright Violation

Reviews( 0 )

QUESTIONS & ANSWERS

$4.50

Buy Now

We Accept:

Payment methods accepted on Scholarfriends (We Accept)

Instant download

Can't find what you want? Try our AI powered Search

76
0

Document information

Connected school, study & course

About the document

Uploaded On

Apr 20, 2023

Number of pages

16

Written in

All

Type

QUESTIONS & ANSWERS

Seller

Profile illustration for geeks4geeks
geeks4geeks

Member since 4 years

2 Documents Sold

Send Message
Additional information

This document has been written for:

Course

Financial Accounting

Category

QUESTIONS & ANSWERS

Uploaded

Apr 20, 2023

Downloads

 0

Views

 76

Document Keyword Tags

More From geeks4geeks

View all geeks4geeks's documents »

Recommended For You

Get more on QUESTIONS & ANSWERS »
$4.50
Buy Now
What is Scholarfriends

Scholarfriends.com Online Platform by Browsegrades Inc. 651N South Broad St, Middletown DE. United States.

Get to know us
About Us
Privacy Statement
Refund Policy
Terms and Conditions
Contact Us
Blog
We are here to help

We're available through e-mail, Twitter, Facebook, and live chat.
 FAQ
 Questions? Leave a message!

Follow us on
 Twitter
Useful links
  • Join our Subreddit
  • Solutions Manuals for Accounting, Business, Economics and Management Text Books. The Popular and the Latest.
  • Popular NURSING Test Banks
  • Courses
  • Categories
    • We accept

    payment cards

    Copyright © Scholarfriends · High quality services·