NEWEST FICEP EXAM ACTUAL EXAM LATEST ALL 100 REAL QUESTIONS AND CORRECT ANSWERS (100% CORRECT VERIFIED SOLUTIONS) A NEW UPDATED VERSION

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FICEP CUNA FINAL EXAM REVIEW|| ACTUAL EXA b b b b b b



M ALL QUESTIONS AND CORRECT ANSWERS 100%|
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| LATEST AND FULLY COVERED VERSION WITH VE
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ED PASS!!! b




Select the statement that correctly describes a progressive tax. -
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ANSWER: A progressive tax requires people to pay more as they earn more.
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Pick the statement that best describes a regressive tax. -
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ANSWER: A regressive tax charges the same tax rate regardless of the taxpayer's in
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come.


Why are government fees and surcharges sometimes described as a form of tax? -
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ANSWER: Because they generate income for the government.
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Which taxing authorities are worthy of the member's attention? -
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ANSWER: The member must attend to all tax authorities at all levels of government
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to maintain their financial well-being.
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How do taxes impact your personal spending? -
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ANSWER: Taxes can make personal spending go up or down.
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Which is larger: the penalty for failing to pay federal income taxes on time, or the pen
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alty for failing to file a tax return when taxes are owed? -
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ANSWER: The penalty for failing to file a tax return is significantly higher.
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What is the right attitude to take toward taxes to protect your financial well-being? -
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ANSWER: Taxes are an essential financial responsibility.
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When is the IRS most likely to impose the maximum penalty on taxpayers? -
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ANSWER: When they are forced to track down the taxpayer.
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What is a good rule to follow when dealing with a tax auditor or another issue involvi
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ng the IRS? - ANSWER: Never assume the IRS is always correct.
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What is the financial counselor's role in aiding members with complex tax issues? -
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ANSWER: The counselor provides basic information and refers members to tax pro
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grams or tax experts. b b b




What happens when taxpayers who file a late return for any or all of the 4 most recent
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tax years are owed a refund? -
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bANSWER: No penalty is charged and the taxpayer gets the full refund amount.
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What tax services are provided by the Volunteer Income Tax Assistance (VITA) pro
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gram? - ANSWER: Free tax return assistance to low- or moderate-
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income taxpayers. b




What benefit is offered when VITA services are combined with credit union program
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s that encourage taxpayers to open accounts for direct deposit of tax refunds? -
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bANSWER: Direct deposit reduces the time required to get a refund, which counters
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the appeal of refund anticipation loans.
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What is the name of the organization that offers free tax assistance to taxpayers age 6
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0 or older, those with disabilities or special needs, or who qualify for earned income o
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r homestead tax credits? - ANSWER: Tax Counseling for the Elderly (TCE)
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What percent of tax payers are eligible to use the "Free File Online" service offered as
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a partnership between the IRS and tax software companies? -
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ANSWER: 70% are eligible
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When members use tax refunds to pay down debts, which debts should be paid first? -
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ANSWER: Always pay the debts with high interest rates or that could prompt garnis
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hments.


How have education, information, and direct deposit programs impacted taxpayers' u
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se of refund anticipation loans? -
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bANSWER: The use of refund anticipation loans is decreasing.
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What rule of thumb should be used when defining taxable income? -
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ANSWER: If you benefit financially, you are likely to be taxed for it.
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Which type of qualified IRA withdrawal is exempt from income tax? -
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ANSWER: Roth IRA withdrawals are exempt.
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How do different tax authorities treat items excluded from federal taxable income? -
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ANSWER: Exclusions vary from state to state.
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What is the first step for effectively managing income taxes? -
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ANSWER: Determining your filing status.
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What should be the goal of managing a taxpayer's income tax withholding? -
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ANSWER: To maintain cash flow while avoiding a tax bill at filing time.
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What happens to year-
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end balances "left over" in Section 125 plans or health savings accounts (HSAs)? -
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ANSWER: Section 125 balances are forfeited, while HSA balances are rolled over
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