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Quiz: Do you Know how to Avoid Common Mistakes on your Income Tax Return?
by Staff
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?

  • 2036-11-20 23:00:00
  • 2091-08-24 23:00:00
  • 100000

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
  • getting audited

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?

  • 35 cents
  • 65 cents
  • 95 cents

What is a common mistake that filers make that often ends up costing them money?

  • missed deductions
  • 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?

  • four years
  • five years
  • six years

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
  • phishing
  • underreporting income

How much do Americans overpay in taxes each year because of missed deductions or credits?

  • $500 million
  • $1 billion
  • $2 billion

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?

  • yes
  • no
  • yes, if you are filing jointly with your spouse