Ficep Final: CUNA Review Questions And Answers |
Complete Solution Graded A+
,Ficep Final: CUNA Review Questions And Answers |
Complete Solution Graded A+
Select the statement that correctly describes a progressive tax. - answer A progressive tax
requires people to pay more as they earn more.
Pick the statement that best describes a regressive tax. - answer A regressive tax charges
the same tax rate regardless of the taxpayer's income.
Why are government fees and surcharges sometimes described as a form of tax? - answer
Because they generate income for the government.
Which taxing authorities are worthy of the member's attention? - answer The member
must attend to all tax authorities at all levels of government to maintain their financial
well-being.
How do taxes impact your personal spending? - answer Taxes can make personal spending
go up or down.
Which is larger: the penalty for failing to pay federal income taxes on time, or the penalty
for failing to file a tax return when taxes are owed? - answer The penalty for failing to file a
tax return is significantly higher.
What is the right attitude to take toward taxes to protect your financial well-being? -
answer Taxes are an essential financial responsibility.
When is the IRS most likely to impose the maximum penalty on taxpayers? - answer When
they are forced to track down the taxpayer.
What is a good rule to follow when dealing with a tax auditor or another issue involving
the IRS? - answer Never assume the IRS is always correct.
, Ficep Final: CUNA Review Questions And Answers |
Complete Solution Graded A+
What is the financial counselor's role in aiding members with complex tax issues? - answer
The counselor provides basic information and refers members to tax programs or tax
experts.
What happens when taxpayers who file a late return for any or all of the 4 most recent tax
years are owed a refund? - answer No penalty is charged and the taxpayer gets the full
refund amount.
What tax services are provided by the Volunteer Income Tax Assistance (VITA) program?
- answer Free tax return assistance to low- or moderate-income taxpayers.
What benefit is offered when VITA services are combined with credit union programs that
encourage taxpayers to open accounts for direct deposit of tax refunds? - answer Direct
deposit reduces the time required to get a refund, which counters the appeal of refund
anticipation loans.
What is the name of the organization that offers free tax assistance to taxpayers age 60 or
older, those with disabilities or special needs, or who qualify for earned income or
homestead tax credits? - answer Tax Counseling for the Elderly (TCE)
What percent of tax payers are eligible to use the "Free File Online" service offered as a
partnership between the IRS and tax software companies? - answer 70% are eligible
When members use tax refunds to pay down debts, which debts should be paid first? -
answer Always pay the debts with high interest rates or that could prompt garnishments.
How have education, information, and direct deposit programs impacted taxpayers' use of
refund anticipation loans? - answer The use of refund anticipation loans is decreasing.
What rule of thumb should be used when defining taxable income? - answer If you benefit
financially, you are likely to be taxed for it.
Complete Solution Graded A+
,Ficep Final: CUNA Review Questions And Answers |
Complete Solution Graded A+
Select the statement that correctly describes a progressive tax. - answer A progressive tax
requires people to pay more as they earn more.
Pick the statement that best describes a regressive tax. - answer A regressive tax charges
the same tax rate regardless of the taxpayer's income.
Why are government fees and surcharges sometimes described as a form of tax? - answer
Because they generate income for the government.
Which taxing authorities are worthy of the member's attention? - answer The member
must attend to all tax authorities at all levels of government to maintain their financial
well-being.
How do taxes impact your personal spending? - answer Taxes can make personal spending
go up or down.
Which is larger: the penalty for failing to pay federal income taxes on time, or the penalty
for failing to file a tax return when taxes are owed? - answer The penalty for failing to file a
tax return is significantly higher.
What is the right attitude to take toward taxes to protect your financial well-being? -
answer Taxes are an essential financial responsibility.
When is the IRS most likely to impose the maximum penalty on taxpayers? - answer When
they are forced to track down the taxpayer.
What is a good rule to follow when dealing with a tax auditor or another issue involving
the IRS? - answer Never assume the IRS is always correct.
, Ficep Final: CUNA Review Questions And Answers |
Complete Solution Graded A+
What is the financial counselor's role in aiding members with complex tax issues? - answer
The counselor provides basic information and refers members to tax programs or tax
experts.
What happens when taxpayers who file a late return for any or all of the 4 most recent tax
years are owed a refund? - answer No penalty is charged and the taxpayer gets the full
refund amount.
What tax services are provided by the Volunteer Income Tax Assistance (VITA) program?
- answer Free tax return assistance to low- or moderate-income taxpayers.
What benefit is offered when VITA services are combined with credit union programs that
encourage taxpayers to open accounts for direct deposit of tax refunds? - answer Direct
deposit reduces the time required to get a refund, which counters the appeal of refund
anticipation loans.
What is the name of the organization that offers free tax assistance to taxpayers age 60 or
older, those with disabilities or special needs, or who qualify for earned income or
homestead tax credits? - answer Tax Counseling for the Elderly (TCE)
What percent of tax payers are eligible to use the "Free File Online" service offered as a
partnership between the IRS and tax software companies? - answer 70% are eligible
When members use tax refunds to pay down debts, which debts should be paid first? -
answer Always pay the debts with high interest rates or that could prompt garnishments.
How have education, information, and direct deposit programs impacted taxpayers' use of
refund anticipation loans? - answer The use of refund anticipation loans is decreasing.
What rule of thumb should be used when defining taxable income? - answer If you benefit
financially, you are likely to be taxed for it.
