CPA Tcp Quiz: Apply Filing And Reporting Procedures

What this quiz covers

This quiz focuses on Apply Filing And Reporting Procedures, giving you a quick way to practice the rules, question types, and explanations that matter most for CPA Tcp.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. March 15 of the following year.
2. June 15 of the following year.
3. March 1 of the following year.
4. April 15 of the following year, or the next business day if April 15 falls on a weekend or holiday. (correct answer)

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.

Question 2

1. April 15 of the year following the tax year.
2. The 15th day of the fourth month after the tax year-end.
3. The 15th day of the third month after the tax year-end (March 15 for calendar-year partnerships), with a 6-month extension available. (correct answer)
4. The same date as the individual returns of the partners.

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.

Question 3

1. Employers must furnish W-2s to employees by March 31 and file copies with the SSA by April 15.
2. Employers must furnish W-2s to employees by January 31 and file copies with the SSA by January 31. (correct answer)
3. Employers must furnish W-2s to employees by February 28 and file paper copies with the SSA by March 31.
4. Employers must furnish W-2s by January 31 but have until April 15 to file with the SSA.

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.

Question 4

1. Only the failure-to-pay penalty of 0.5% per month.
2. Only the failure-to-file penalty of 5% per month.
3. Both penalties, which together may reach a maximum combined rate of 10% per month.
4. 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. (correct answer)

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).

Question 5

1. 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. (correct answer)
2. April 15, the same as individual returns.
3. The 15th day of the fourth month after the tax year-end.
4. The same due date as the C corporation return (Form 1120).

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).

Question 6

1. October 15, the same as domestic taxpayers who file Form 4868.
2. April 30, with an additional 6 months available upon request.
3. June 15, with an additional discretionary extension to December 15 available upon request. (correct answer)
4. No extension - taxpayers living abroad must file by April 15.

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).

Question 7

1. February 28 for paper filing and March 31 for electronic filing.
2. January 31 for both IRS filing and recipient copies, regardless of whether filing is paper or electronic. (correct answer)
3. April 15 of the following year.
4. March 15 for IRS filing and January 31 for recipient copies.

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).

Question 8

1. 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. (correct answer)
2. Payroll taxes must be deposited every two weeks, regardless of payroll date.
3. Payroll taxes must be deposited on the 15th and the last day of each month.
4. Payroll taxes must be deposited within 1 business day of each payroll.

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.

Question 9

1. Not file the return until they can pay in full to avoid the failure-to-pay penalty.
2. File an extension, which also extends the payment deadline.
3. 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. (correct answer)
4. File the return late and request penalty abatement based on inability to pay.

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).

Question 10

1. A U.S. person has any foreign financial account, regardless of balance.
2. 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. (correct answer)
3. A U.S. person earns more than $10,000 of income from foreign sources.
4. A U.S. person owns foreign real estate worth more than $10,000.

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.

Question 11

1. April 15 of the following year, the same as individual returns.
2. March 15, the same as S corporations and partnerships.
3. The 15th day of the fourth month after the trust's tax year-end.
4. The 15th day of the fourth month after the trust's tax year-end (April 15 for calendar-year trusts), with a 5-month extension available. (correct answer)

Explanation: Form 1041 is due the 15th day of the fourth month after year-end (April 15 for calendar-year trusts), with a 5-month (not 6-month) automatic extension available. Answer D is correct. While the due date in C is correct, Answer D is more complete because it specifies the 5-month extension period. March 15 (B) applies to partnerships and S corps.

Question 12

1. The greater of $5,000 or 10% of the correct tax shown on the return. (correct answer)
2. $1,000 or 5% of the tax shown on the return.
3. Any amount - the penalty applies to all understatements.
4. $10,000 or 25% of the correct tax.

Explanation: The substantial understatement penalty applies when the understatement exceeds the greater of $5,000 or 10$1,000/5% (B) and $10,000/25% (D) are not the standard. Not all understatements trigger this specific penalty (C).

Question 13

1. Annually, by January 31 of the following year.
2. Monthly, by the 15th of the following month.
3. Quarterly, by the last day of the month following the end of each calendar quarter (April 30, July 31, October 31, January 31). (correct answer)
4. Semiannually, by July 31 and January 31.

Explanation: Form 941 is filed quarterly with due dates of April 30, July 31, October 31, and January 31. Answer C is correct. Annual filing (A) describes Form 944 for small employers. Monthly filing (B) is for deposits, not returns. Semiannual filing (D) is not the Form 941 schedule.

Question 14

1. Any gift is made during the calendar year.
2. Gifts exceed the annual exclusion amount per recipient.
3. Total gifts during the year exceed the lifetime exemption.
4. A taxable gift is made (gifts exceeding the annual exclusion to any one person), gifts of a present interest to a spouse who is not a U.S. citizen, or certain transfers that must be disclosed regardless of tax. (correct answer)

Explanation: Form 709 is required for taxable gifts (above annual exclusion), gifts to non-citizen spouses, and certain required disclosures. Answer D is correct. Not all gifts require Form 709 (A). The threshold is per-person annual exclusion, but Form 709 may be required even with no tax due (B). Lifetime exemption (C) relates to whether tax is owed, not whether Form 709 is required.

Question 15

1. Submitting paper W-2s to the Social Security Administration, as a cover transmittal - electronic filers do not file Form W-3. (correct answer)
2. Any employee earns more than $100,000 during the year.
3. The employer has more than 50 employees.
4. The employer had any federal income tax withholding during the year.

Explanation: Form W-3 is the paper transmittal that accompanies paper W-2 submissions to the SSA - electronic filers transmit the W-2 data directly and do not file a separate W-3. Answer A is correct. Earnings thresholds (B) and employee counts (C) don't trigger Form W-3 independently. Withholding (D) determines W-2 requirements, not W-3 specifically.

Question 16

1. MFS results in a higher standard deduction than Married Filing Jointly.
2. MFS allows each spouse to independently claim all tax credits.
3. MFS taxpayers lose access to several deductions and credits, including the earned income credit, education credits, and child and dependent care credit, and may be subject to higher tax rates. (correct answer)
4. MFS requires both spouses to use the same accounting method.

Explanation: MFS status results in loss of many beneficial credits and deductions, and tax brackets are less favorable than MFJ. Answer C is correct. MFS standard deduction is half of MFJ (A). Many credits are unavailable for MFS filers (B). Accounting methods are separate (D).

Question 17

1. 30 days to respond before the IRS can assess the additional tax.
2. 90 days to file a petition with the U.S. Tax Court to contest the deficiency without first paying the tax (150 days if the notice is addressed to a person outside the United States). (correct answer)
3. 60 days to pay the deficiency or request an installment agreement.
4. 90 days to pay the deficiency or appeal to the IRS Appeals Office.

Explanation: A statutory notice of deficiency (90-day letter) gives the taxpayer 90 days (150 days if outside the U.S.) to file in Tax Court without prepaying the tax. Answer B is correct. 30 days (A) is for the 30-day letter (appeals letter). 60 days to pay (C) is not a standard period. The 90-day letter doesn't require payment - it is a prerequisite to Tax Court (D).

Question 18

1. Cash payments exceeding $10,000 in a single transaction or a series of related transactions, within a specific time period. (correct answer)
2. Any payment by wire transfer exceeding $5,000.
3. Credit card payments exceeding $20,000 in a single transaction.
4. Foreign currency payments of any amount.

Explanation: Businesses must file Form 8300 when they receive cash (including cashier's checks, money orders) of more than $10,000 in a transaction or related transactions. Answer A is correct. Wire transfers (B) are not covered by Form 8300. Credit cards (C) are not covered. Foreign currency (D) without exceeding$10,000 threshold doesn't require Form 8300.

Question 19

1. The U.S. Supreme Court directly.
2. The IRS Commissioner's office within 30 days.
3. The IRS Independent Office of Appeals within 30 days (for most audits), and subsequently to Tax Court, U.S. District Court, or Court of Federal Claims if unresolved. (correct answer)
4. The state tax authority for resolution.

Explanation: After an audit, taxpayers may appeal to IRS Appeals within 30 days, and if unresolved, proceed to Tax Court, District Court, or Court of Federal Claims. Answer C is correct. Direct Supreme Court access (A) is not available at this stage. Commissioner appeals (B) are not standard procedure. State authorities (D) handle state, not federal, tax matters.

Question 20

1. Form 1040, the same as U.S. citizens and residents.
2. Form 1040-NR (U.S. Nonresident Alien Income Tax Return) to report U.S. source income. (correct answer)
3. No return is required if tax was fully withheld at source.
4. Form 1040-X as an amendment to a previously filed Form 1040.

Explanation: A nonresident alien who is engaged in a U.S. trade or business during the year must file Form 1040-NR to report U.S.-source income effectively connected with that trade or business. Answer B is correct. Form 1040 (A) is for U.S. citizens and resident aliens, not nonresident aliens. Answer C is incorrect because when a nonresident alien is engaged in a U.S. trade or business, a return is required even if withholding fully covered the tax liability on any fixed or determinable income. Form 1040-X (D) is an amended return for a previously filed return, not an original filing.