Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
If a tax preparer promises to get you a big refund without having seen any of your documents, why might that be cause for concern?
Both of the above. The preparer might do both of these, if not either. Take such promises with a lot of caution.
2.
How long after filing your taxes should you keep your supporting documents and records?
Three years. The audit window is three years.
3.
When considering your options for dealing with a tax bill that you cant pay, remember that _______ will be added to your tax bill until it is resolved.
Interest and penalties. Although the IRS may be willing to negotiate a settlement of your tax bill, there will generally be added penalties and interest charged for the unpaid balance.
4.
When it comes to collecting on back taxes, the IRS is more likely to take action to seize your primary residence if you have not cooperated with their efforts to collect back taxes.
True. The IRS will attempt to gain your cooperation in the payment of back taxes and will typically go after your residence only as a last resort if you are uncooperative.
5.
When the IRS completes an audit of a taxpayer, what can the taxpayer do to appeal the IRS findings?
All of the above. These are the steps, usually followed in order, that a taxpayer would follow to appeal the results of an audit. This process is successful in lowering the tax bill for about half of those who contest the audit report.
6.
Why is the home office deduction an audit flag?
Office space often gets used for personal purposes. Personal use invalidates its purpose as home office space.