Apply Filing And Reporting Procedures
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CPA Tax Compliance & Planning (TCP) › Apply Filing And Reporting Procedures
A calendar-year individual taxpayer's Form 1040 is originally due on:
April 15 of the following year, or the next business day if April 15 falls on a weekend or holiday.
June 15 of the following year.
March 15 of the following year.
March 1 of the following year.
Explanation
Individual Form 1040 is due April 15 of the year following the tax year (or the next business day if April 15 is a weekend or holiday). Answer D is correct. March 15 (A) is the due date for S corporations and partnerships. June 15 (B) is the extended due date for certain overseas filers. March 1 (C) is not a standard due date.
A partnership (Form 1065) is due on:
The same date as the individual returns of the partners.
The 15th day of the third month after the tax year-end (March 15 for calendar-year partnerships), with a 6-month extension available.
The 15th day of the fourth month after the tax year-end.
April 15 of the year following the tax year.
Explanation
Form 1065 is due on the 15th day of the third month after year-end (March 15 for calendar-year partnerships), with a 6-month extension to September 15. Answer C is correct. April 15 (A) is for individual and corporate calendar-year returns. Fourth month (B) is for C corporations. Partner return dates (D) follow but are not the partnership due date.
Which of the following correctly describes the filing requirements for Form W-2?
Employers must furnish W-2s to employees by January 31 and file copies with the SSA by January 31.
Employers must furnish W-2s to employees by March 31 and file copies with the SSA by April 15.
Employers must furnish W-2s by January 31 but have until April 15 to file with the SSA.
Employers must furnish W-2s to employees by February 28 and file paper copies with the SSA by March 31.
Explanation
W-2s must be furnished to employees by January 31 and filed with the SSA by January 31 (both electronic and paper). Answer B is correct. The old February 28/March 31 deadlines (A, C) were updated to January 31 for employer W-2 filing. April 15 (D) is not the SSA filing deadline.
A taxpayer who is required to file a federal income tax return but fails to file and fails to pay is subject to:
Both the failure-to-file penalty (5% per month, max 25%) and the failure-to-pay penalty (0.5% per month, max 25%), but when both apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty.
Only the failure-to-pay penalty of 0.5% per month.
Only the failure-to-file penalty of 5% per month.
Both penalties, which together may reach a maximum combined rate of 10% per month.
Explanation
Both penalties apply, but in months where both penalties run, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty (effectively 4.5% + 0.5% = 5% combined). Answer D is correct. Both penalties apply simultaneously (A, B). The maximum combined rate isn't simply 10% (C).
An S corporation (Form 1120-S) must file its return by:
April 15, the same as individual returns.
The 15th day of the third month after the tax year-end (March 15 for calendar-year S corporations), with a 6-month automatic extension available.
The same due date as the C corporation return (Form 1120).
The 15th day of the fourth month after the tax year-end.
Explanation
S corporations file on the same schedule as partnerships - 15th day of the third month (March 15 for calendar year), with a 6-month extension. Answer A is correct. April 15 (B) is for individuals. Fourth month (C) is for C corporations. S corps have an earlier due date than C corps (D).
A taxpayer living abroad on April 15 is entitled to an automatic extension to:
October 15, the same as domestic taxpayers who file Form 4868.
April 30, with an additional 6 months available upon request.
No extension - taxpayers living abroad must file by April 15.
June 15, with an additional discretionary extension to December 15 available upon request.
Explanation
U.S. citizens and residents abroad receive an automatic 2-month extension to June 15 (no form required), with an additional extension to December 15 available by request. Answer C is correct. The October 15 extension (A) requires Form 4868. April 30 (B) is not a standard date. Taxpayers abroad do get extensions (D).
Form 1099-NEC must be filed with the IRS and furnished to the recipient by:
January 31 for both IRS filing and recipient copies, regardless of whether filing is paper or electronic.
April 15 of the following year.
March 15 for IRS filing and January 31 for recipient copies.
February 28 for paper filing and March 31 for electronic filing.
Explanation
Form 1099-NEC (for nonemployee compensation) must be filed with the IRS and furnished to recipients by January 31, both paper and electronic. Answer B is correct. The old February 28/March 31 split (A) applied to Form 1099-MISC before 1099-NEC was reinstated. April 15 (C) is not the 1099-NEC deadline. Recipient copies and IRS copies have the same January 31 deadline (D).
A corporation must deposit its payroll taxes. Which of the following correctly describes the deposit schedule for a 'semiweekly depositor'?
Payroll taxes must be deposited on the 15th and the last day of each month.
Payroll taxes must be deposited within 1 business day of each payroll.
Payroll taxes on wages paid on Wednesday, Thursday, or Friday must be deposited by the following Wednesday; taxes on wages paid Saturday through Tuesday must be deposited by the following Friday.
Payroll taxes must be deposited every two weeks, regardless of payroll date.
Explanation
Semiweekly depositors follow the Wednesday/Friday deposit schedule: payroll on Wed-Fri deposits by next Wednesday; payroll on Sat-Tue deposits by following Friday. Answer A is correct. Bi-weekly deposits (B) describe a different schedule. 15th/last day (C) is the monthly depositor schedule. Next-day deposit (D) is for very large depositors.
A taxpayer who cannot pay their full tax liability by the filing deadline should:
File the return on time to avoid the larger failure-to-file penalty, pay as much as possible, and consider requesting an installment agreement or currently-not-collectible status.
Not file the return until they can pay in full to avoid the failure-to-pay penalty.
File the return late and request penalty abatement based on inability to pay.
File an extension, which also extends the payment deadline.
Explanation
Filing on time minimizes the larger failure-to-file penalty (5%/month vs. 0.5%/month for failure to pay). The taxpayer should pay what they can and explore installment agreements. Answer C is correct. Not filing increases penalties (A). Extensions don't extend payment deadlines (B). Late filing to request abatement is a poor strategy (D).
FBAR (FinCEN Form 114) is required when:
A U.S. person has a financial interest in, or signature authority over, foreign financial accounts with an aggregate value exceeding $10,000 at any point during the calendar year.
A U.S. person owns foreign real estate worth more than $10,000.
A U.S. person has any foreign financial account, regardless of balance.
A U.S. person earns more than $10,000 of income from foreign sources.
Explanation
FBAR filing is required when aggregate foreign financial account balances exceed $10,000 at any point during the year. Answer B is correct. Any account regardless of balance (A) is too broad. Foreign income (C) is not the FBAR trigger. Real estate (D) is generally not a foreign financial account for FBAR.