Quiz: Do you Know how to Avoid Common Mistakes on your Income Tax Return?
No one wants to make a mistake on his or her income tax return. This is especially true if you are owed a refund or end up paying more taxes than you should. A simple mistake can cost you a significant amount of money or delay your refund by weeks. Take this quiz to ensure you know how to minimize errors on your tax returns.
How many pages of information are currently contained in the official U.S. Tax Code?
If there are mistakes on your tax return or in how you file it, what are some of the more common outcomes you might experience?
audits and investigations
criminal charges, trials and fines
delayed refunds, penalties and interest
What is one of the most important things that you can do with your tax return to avoid problems and save money?
file on time
include all forms with the return
double-check the return before filing
According to the Internal Revenue Service (IRS), how many Americans wait until the week before the deadline to file their return?
around 30 percent
around 20 percent
around 15 percent
What is the rate and terms of interest charged by the Internal Revenue Service on unpaid taxes beginning from the due date?
federal short-term rate plus 3 percent compounded daily
prime rate plus 5 percent compounded weekly
15 percent compounded quarterly
What is the late filing penalty rate assessed by the IRS on the taxes you owe?
4 percent per month or part of month to a 30 percent maximum
5 percent per month or part of month to a 25 percent maximum
6 percent per month or part of month to a 20 percent maximum
What's the most common mistake that people who wait until the last minute to file make?
not signing the return
not putting postage on the mailing envelope
not including payment or refund information on the return
What can be most the most expensive thing about making a simple mistake on your tax return?
delay in refund
being charged penalties and interest
What is the best way to avoid many possible mistakes when filing a tax return?
Have someone double-check the return for you.
Hire a tax professional to do your return.
E-file your return.
What does it cost the IRS to process an e-file tax return?
What is a common mistake that filers make that often ends up costing them money?
wrong amounts entered
missed tax credits
What should you do if you receive a letter from the IRS pointing out that you made math errors?
Check the math on your copy of the return.
Write them an angry letter.
Be thankful they told you about the mistake rather than letting fees rack up with your knowledge.
Before you even start filling out your return, what is a good way to insure that you pay the least tax possible?
Purchase current tax software.
Read the most up-to-date information on tax changes.
Consult a tax attorney.
What is an easy way for some people to have their tax return completed by a professional?
Give it to your CPA brother-in-law.
Take it to a mall kiosk.
Take part in a Super Saturday if you qualify.
How long should you maintain copies of your tax returns before you destroy them?
What kind of activity can get you in to hot water and possible prosecution when dealing with tax returns?
failing to report income
abusing charitable donations
both of the above
What recent scam does the IRS find particularly alarming?
forging of documents
How much do Americans overpay in taxes each year because of missed deductions or credits?
What does the IRS advise when choosing which form to use for your income tax return?
Always use the form that gives the most complete documentation.
Always use the 1040 form.
Use the simplest form that covers your situation.
Can you have more than one status on your income tax return?