Could someone please help me out with these questions 1 As a

Could someone please help me out with these questions:

1. As a tax preparer you work with a client named Mary on her 2016 tax return and there are no issues. However, during that process you realize Mary was due a refund in 2015 but did not file a return. Which of the following statements applies to Mary with respect to her 2015 refund?

a) Mary cannot apply for a refund for the year 2015 as it is too late

b) Mary has up to three years from the date the tax return was due to file a 2015 return to obtain her refund

c) Mary has up to four years from the date the tax return was due to file a 2015 return to obtain her refund

d) Mary has up to five years from the date the tax return was due to file a 2015 return to obtain her refund

2. In working with a client named Fred, you realize that he did not report income that he should have on a return. Fred reported $10,000 of income on the return but should have reported $13,500. What is Fred’s obligation going forward regarding this incident?

a) Fred must maintain records for 5 years from the year the return was filed

b) Fred must maintain records for 6 years from the year the return was filed

c) Fred must maintain records for 8 years from the year the return was filed

d) Fred must maintain records for 10 years from the year the return was filed

3. Taxpayers can make payments by electronic funds withdrawal (EFW) for all of the following except:

a) Form 4868 - Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

b) Form 2350 - Application for Extension of Time to File U.S. Income Tax Return for Citizens and Resident Aliens Abroad Who Expect to Qualify for Special Tax Treatment

c) Form 1040-ES - Estimated Tax for Individuals (Taxpayers can make up to four estimated tax payments at the time that they electronically file the Form 1040 series return)

d) Form 433-F - Collection Information Statement

4. When a taxpayer is using a debit or credit card for payment all of the following are true except:

a) If the taxpayer made an overpayment, IRS will refund it after the return is processed

b) The taxpayer can make Federal tax deposits with a debit or credit card

c) Making an electronic payment eliminates the need to use a voucher

d) High balance payments of $100,000 or greater may require special coordination with the service provider chosen

Solution

1. B) Mary has up to three years from the date the tax return was due to file a 2015 return to obtain her refund.

2. A) Fred must maintain records for 5 years from the year the return was filed

3. D) Form 433F collection information statement

4. C) Making an electronic payment eliminates the need to use a voucher.