Tax Preparer Final Exam Review (Latest
Update ) Questions & Answers
{Grade A} 100% Correct
What is a thorough interview? - correct answer A thorough interview consists of
asking general information questions, then asking additional questions whenever
information is incomplete or seems inaccurate or inconsistent. (26.2)
What is a conflict of interest? - correct answer A conflict of interest is when one's
situation might benefit at the expense of another's situation. (26.3)
What actions can resolve a conflict of interest? - correct answer A conflict of interest
is resolved when it is acknowledged, disclosed to all parties, and the parties have
consented to waiving the conflict. (26.3)
,What client information is confidential? - correct answer Any information that could
potentially identify the client is confidential.
Information includes (but is not limited to):
• Name
• Address and phone number
• Social security numbers
• Place of employment
• Any information from a tax return (26.4)
Is it acceptable for a Tax Professional to leave a detailed phone message for a client,
letting them know their tax return is complete? - correct answer • Tax Professionals
must have prior consent from the client to leave phone messages related to their tax
return.
• The fact that a taxpayer is the client of a Tax Professional or tax preparation business
is confidential information that must not be disclosed. (26.5)
,What is a Tax Professional's responsibility upon finding out that a client has not
complied with any tax law? - correct answer A Tax Professional must advise the client
of the noncompliance and the consequences for not correcting the situation. (26.7)
What action should a Tax Professional take if a client insists on reporting information
that is inaccurate? - correct answer A Tax Professional should never prepare a return
that contains inaccurate information. (26.7)
If the employee thinks his Form W-2 is not correct, what should he do? - correct
answer • If the name or social security number is incorrect, the taxpayer may change it
himself and need not obtain a corrected W-2 before filing his tax return.
• The employer should be notified of the error and asked to update his records.
, • Furthermore, the employee's social security number and earnings records should be
verified with the Social Security Administration to ensure that the earnings were
properly credited. (2.17)
Where can the regular standard deduction amounts be found? - correct answer • In the
left-hand margin at the top of page 2 of Forms 1040 and 1040A.
• They are: S, MFS $5,700; MFJ, QW $11,400; HH $8,400.
• The amounts differ for taxpayers age 65 or older or blind and those who may be
claimed as dependents by other taxpayers.
[2010]
What is the exemption amount for 2009? - correct answer $3,650 with a reduction for
higher-income taxpayers of 2% for each $2,500 ($1,250 MFS) the AGI exceeds amounts:
$166,800 S
$250,200 MFJ QW
Update ) Questions & Answers
{Grade A} 100% Correct
What is a thorough interview? - correct answer A thorough interview consists of
asking general information questions, then asking additional questions whenever
information is incomplete or seems inaccurate or inconsistent. (26.2)
What is a conflict of interest? - correct answer A conflict of interest is when one's
situation might benefit at the expense of another's situation. (26.3)
What actions can resolve a conflict of interest? - correct answer A conflict of interest
is resolved when it is acknowledged, disclosed to all parties, and the parties have
consented to waiving the conflict. (26.3)
,What client information is confidential? - correct answer Any information that could
potentially identify the client is confidential.
Information includes (but is not limited to):
• Name
• Address and phone number
• Social security numbers
• Place of employment
• Any information from a tax return (26.4)
Is it acceptable for a Tax Professional to leave a detailed phone message for a client,
letting them know their tax return is complete? - correct answer • Tax Professionals
must have prior consent from the client to leave phone messages related to their tax
return.
• The fact that a taxpayer is the client of a Tax Professional or tax preparation business
is confidential information that must not be disclosed. (26.5)
,What is a Tax Professional's responsibility upon finding out that a client has not
complied with any tax law? - correct answer A Tax Professional must advise the client
of the noncompliance and the consequences for not correcting the situation. (26.7)
What action should a Tax Professional take if a client insists on reporting information
that is inaccurate? - correct answer A Tax Professional should never prepare a return
that contains inaccurate information. (26.7)
If the employee thinks his Form W-2 is not correct, what should he do? - correct
answer • If the name or social security number is incorrect, the taxpayer may change it
himself and need not obtain a corrected W-2 before filing his tax return.
• The employer should be notified of the error and asked to update his records.
, • Furthermore, the employee's social security number and earnings records should be
verified with the Social Security Administration to ensure that the earnings were
properly credited. (2.17)
Where can the regular standard deduction amounts be found? - correct answer • In the
left-hand margin at the top of page 2 of Forms 1040 and 1040A.
• They are: S, MFS $5,700; MFJ, QW $11,400; HH $8,400.
• The amounts differ for taxpayers age 65 or older or blind and those who may be
claimed as dependents by other taxpayers.
[2010]
What is the exemption amount for 2009? - correct answer $3,650 with a reduction for
higher-income taxpayers of 2% for each $2,500 ($1,250 MFS) the AGI exceeds amounts:
$166,800 S
$250,200 MFJ QW
