Basics Intermediate: Getting Your Taxes Done

Test your knowledge

Choose wisely. There is only one correct answer to each question.

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Review your answers below to learn more.

Which of the following statements is true?

Enrolled agents are specially trained IRS agents available to assist you with tax planning and return preparation.

Enrolled agents are required to have a professional degree.

All paid tax return preparers must now register with the IRS.

All paid tax return preparers must now register with the IRS. This includes EAs, CPAs, and attorneys.

What is one type of information that a tax preparation software program might import for you?

Your budget

Your W-4 form from your employer

Your Facebook profile

Your W-4 form from your employer. Your W-4 form from your employer is one type of information that a tax preparation software program might import for you.

Tax preparation software makers offer an encrypted connection to the IRS, so that if you file electronically, your information is secure.

True

False

True. Tax preparation software makers offer an encrypted connection to the IRS, so that if you file electronically, your information is secure.

Most tax preparation software offers the ability to prepare _______ taxes as well.

Local

County

State

State. Most tax preparation software offers the ability to prepare state taxes as well as federal taxes.

Everyone must prepare a state income tax return.

True

False

False. If you live in a state that has a personal income tax, you must prepare a state income tax return. But not all states have that tax.