EA Practice Test 4

7 Questions | Total Attempts: 4305

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Practice Test Quizzes & Trivia

Practice questions for the EA exam.


Questions and Answers
  • 1. 
    Rory filed his 2010 Form 1040 on February 20, 2011. Later, he finds an error that would result in a larger refund. What is the last day that Rory can amend his 2010 tax return and still receive a refund?
    • A. 

      April 15, 2010

    • B. 

      February 20, 2011

    • C. 

      April 15, 2014

    • D. 

      April 15, 2013

  • 2. 
    Which statement pertaining to estimated tax payments is NOT correct?
    • A. 

      An individual whose only income is from self-employment will have to pay estimated payments.

    • B. 

      If insufficient tax is paid through withholding, estimated payments may still be necessary.

    • C. 

      Estimated tax payments are required when the withholding taxes are greater than the overall tax liability.

    • D. 

      Estimated tax is used to pay not only income tax, but self-employment tax and Alternative Minimum Tax as well.

  • 3. 
    Which of the following is NOT an acceptable reason for extending the statute of limitations for a refund (past the normal deadline)?
    • A. 

      A bad debt from a worthless security

    • B. 

      Living outside the country for three years

    • C. 

      Exceptions for military personnel

    • D. 

      An injured spouse claim

  • 4. 
    Dottie is a U.S. resident who paid estimated tax in 2009 totaling $2,500. In 2010, Dottie quit her business as a self-employed contractor and is now unemployed. She expects to have zero tax liability in 2010. Which of the following statements is true?
    • A. 

      Dottie is still required to make estimated tax payments in 2010.

    • B. 

      Dottie is not required to make estimated tax payments in 2010

    • C. 

      Dottie must pay a minimum of $2,500 in estimated tax in 2010, or she will be subject to a penalty.

    • D. 

      Dottie must make a minimum of $2,250 (90% x $2,500) in estimated tax payments in 2010, or she will be subject to a penalty.

  • 5. 
    Charles had a $4,500 tax liability in 2009. In 2010, Charles expects to owe approximately $3,200 in federal taxes. In 2010, he has $1,200 in income tax withheld from his paycheck. Which of the following statements is true?
    • A. 

      Charles does not need to pay estimated taxes in 2010.

    • B. 

      Charles is required to make estimated tax payments in 2010.

    • C. 

      Charles is required to adjust his withholding. He cannot make estimated tax payments because he is an employee.

    • D. 

      None of the above.

  • 6. 
    Audrey is self-employed and expects to owe $2,500 in taxes for 2010. Her tax liability for her prior tax year was zero, because her business had a loss. Which of the following is true?
    • A. 

      Audrey is required to pay estimated tax in 2010.

    • B. 

      Audrey is NOT required to pay estimated tax for 2010.

    • C. 

      Audrey must pay at least $1,500 in estimated tax for 2010.

    • D. 

      None of the above.

  • 7. 
    Which of the following statements is TRUE regarding the filing of Form 4868, Application for an Automatic Extension of Time to File?
    • A. 

      Interest is not assessed on any income tax due if Form 4868 is filed.

    • B. 

      Form 4868 provides the taxpayer with an automatic six-month extension to file and pay.

    • C. 

      Even though a taxpayer files Form 4868, she will owe interest and may be charged a late payment penalty on the amount owed if the tax is not paid by the due date.

    • D. 

      A U.S. citizen, who is out of the country on vacation on April 18, 2011, will be allowed an additional twelve months to file as long as "Out of the Country" is written across the top of Form 1040.

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