43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
Federal law requires paid tax return preparers to electronically file
Federal income tax returns if they file how many combined Forms
1040, 1040-NR, and 1041 returns during the year?
A. 5 or more B. 7 or more C. 9 or more D. 11 or more -
correct answer ✅D. 11 or more
All of the following are true regarding the Preparer Tax
Identification Number (PTIN) except:
A. New regulations require all paid tax return preparers and
enrolled agents to obtain a Preparer Tax Identification Number
(PTIN) before preparing any Federal tax returns B. A tax preparer
must renew his or her PTIN every year during the renewal season C.
Failure to have a current PTIN could result in the imposition of
Internal Revenue Code Section 6695 penalties, injunction, and/or
disciplinary action by the IRS Office of Professional Responsibility D.
The PTIN is not required for CPAs if they prepare for compensation
all or substantially all of a Federal tax return or claim for refund -
correct answer ✅D. The PTIN is not required for CPAs if they
prepare for compensation all or substantially all of a Federal tax
return or claim for refund
,43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
Fiona is a calendar year taxpayer. Her bank credited, and made
available, interest to her bank account in December 2023. She did
not withdraw it or enter it into her books until 2024. Fiona must
include the amount in gross income for which year?
A. 2022B. 2023C. 2024D. 2025 -
correct answer ✅D. 2025
A company that uses the cash method of accounting bills a
customer $10,000 for services rendered on October 15 and receives
payment on November 15. A sale is recorded on the cash receipt
date, which is November 15. Similarly, the company receives a $500
invoice from a supplier on July 10 and pays the bill on August 10.
The expense is recognized on which date?
A. July 10 B. August 10 C. October 15 D. November 15 -
correct answer ✅B. August 10
A consulting company provides a $5,000 service to a client on
October 30, 2023. The client receives the bill for services rendered
and makes a cash payment on November 25, 2023. The consulting
company uses the accrual accounting method and will record the
$5,000 revenue on which date?
,43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
A. October 30, 2023B. November 25, 2023C. January 1, 2024D. April
15, 2024 -
correct answer ✅C. October 15
Agnes Green was a single, calendar year taxpayer. She died on
March 6, 2023. Her final income tax return must be filed by which
date (not including weekends or holidays)?
A. April 15, 2023B. January 1, 2024C. March 6, 2024D. April 15,
2024 -
correct answer ✅D. April 15, 2024
Captain Margaret Jones entered Afghanistan on December 1, 2021.
She remained there through March 31, 2023, when she departed
for the United States. She was not injured and did not return to the
combat zone. What date is her 2023 tax return due if she does not
file Form 4868 - Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return?
A. January 1, 2024B. April 15, 2024C. June 15, 2024D. October 15,
2024 -
correct answer ✅B. April 15, 2024
, 43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
Modernized e-File (MeF) is a web-based system that allows
electronic filing of corporate, individual, partnership, exempt
organization and excise tax returns through the Internet. Which
item listed below is generally NOT eligible to be filed through the
Internal Revenue Service electronic filing program?
A. Form 1041B. Form 1040-SRC. Form 1042D. Tax returns for prior
years -
correct answer ✅B. Form 1040-SR
If a taxpayer files a claim for a loss from worthless securities or bad
debt deduction, he or she must keep records that support items
shown for how many years after the return was filed?
A. 5 yearsB. 7 yearsC. 8 yearsD. No limit -
correct answer ✅B. 7 years
As a tax preparer you work with a client named Mary on her 2023
income tax return and there are no issues. However, during that
process you realize Mary was due a refund in 2022 but did not file a
return. Which of the following statements applies to Mary with
respect to her 2022 refund?
A. Mary cannot apply for a refund for the year 2022 as it is too
lateB. Mary has up to three years from the date the tax return was
Exam Questions & Answers (Grade
A+)
Federal law requires paid tax return preparers to electronically file
Federal income tax returns if they file how many combined Forms
1040, 1040-NR, and 1041 returns during the year?
A. 5 or more B. 7 or more C. 9 or more D. 11 or more -
correct answer ✅D. 11 or more
All of the following are true regarding the Preparer Tax
Identification Number (PTIN) except:
A. New regulations require all paid tax return preparers and
enrolled agents to obtain a Preparer Tax Identification Number
(PTIN) before preparing any Federal tax returns B. A tax preparer
must renew his or her PTIN every year during the renewal season C.
Failure to have a current PTIN could result in the imposition of
Internal Revenue Code Section 6695 penalties, injunction, and/or
disciplinary action by the IRS Office of Professional Responsibility D.
The PTIN is not required for CPAs if they prepare for compensation
all or substantially all of a Federal tax return or claim for refund -
correct answer ✅D. The PTIN is not required for CPAs if they
prepare for compensation all or substantially all of a Federal tax
return or claim for refund
,43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
Fiona is a calendar year taxpayer. Her bank credited, and made
available, interest to her bank account in December 2023. She did
not withdraw it or enter it into her books until 2024. Fiona must
include the amount in gross income for which year?
A. 2022B. 2023C. 2024D. 2025 -
correct answer ✅D. 2025
A company that uses the cash method of accounting bills a
customer $10,000 for services rendered on October 15 and receives
payment on November 15. A sale is recorded on the cash receipt
date, which is November 15. Similarly, the company receives a $500
invoice from a supplier on July 10 and pays the bill on August 10.
The expense is recognized on which date?
A. July 10 B. August 10 C. October 15 D. November 15 -
correct answer ✅B. August 10
A consulting company provides a $5,000 service to a client on
October 30, 2023. The client receives the bill for services rendered
and makes a cash payment on November 25, 2023. The consulting
company uses the accrual accounting method and will record the
$5,000 revenue on which date?
,43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
A. October 30, 2023B. November 25, 2023C. January 1, 2024D. April
15, 2024 -
correct answer ✅C. October 15
Agnes Green was a single, calendar year taxpayer. She died on
March 6, 2023. Her final income tax return must be filed by which
date (not including weekends or holidays)?
A. April 15, 2023B. January 1, 2024C. March 6, 2024D. April 15,
2024 -
correct answer ✅D. April 15, 2024
Captain Margaret Jones entered Afghanistan on December 1, 2021.
She remained there through March 31, 2023, when she departed
for the United States. She was not injured and did not return to the
combat zone. What date is her 2023 tax return due if she does not
file Form 4868 - Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return?
A. January 1, 2024B. April 15, 2024C. June 15, 2024D. October 15,
2024 -
correct answer ✅B. April 15, 2024
, 43 Hour Federal Qualifying Education
Exam Questions & Answers (Grade
A+)
Modernized e-File (MeF) is a web-based system that allows
electronic filing of corporate, individual, partnership, exempt
organization and excise tax returns through the Internet. Which
item listed below is generally NOT eligible to be filed through the
Internal Revenue Service electronic filing program?
A. Form 1041B. Form 1040-SRC. Form 1042D. Tax returns for prior
years -
correct answer ✅B. Form 1040-SR
If a taxpayer files a claim for a loss from worthless securities or bad
debt deduction, he or she must keep records that support items
shown for how many years after the return was filed?
A. 5 yearsB. 7 yearsC. 8 yearsD. No limit -
correct answer ✅B. 7 years
As a tax preparer you work with a client named Mary on her 2023
income tax return and there are no issues. However, during that
process you realize Mary was due a refund in 2022 but did not file a
return. Which of the following statements applies to Mary with
respect to her 2022 refund?
A. Mary cannot apply for a refund for the year 2022 as it is too
lateB. Mary has up to three years from the date the tax return was
