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1.

Which of the following steps, related to a tax bill, occurs first?

A) signature or veto by the President of the United States

B) consideration by the Senate

C) consideration by the House Ways and Means Committee

D) consideration by the Joint Conference Committee

2.

Which of the following individuals is most likely to be audited?

A) Andrew has AGI of $42,500 from wages and uses the standard deduction.

B) Viviana has a $175,000 net loss from her unincorporated business (a pig farm). She also received $750,000 salary as a CEO of a corporation.

C) Leticia is retired and receives Social Security benefits.

D) Mario is a school teacher with three children earning $70,000 a year. He also receives $350 in interest income on a bank account.

3.

Sabrina files his 2020 tax return on April 1, 2021, shortly before the April 15 due date. Her return contains no misstatements or omissions of income. The statute of limitations for changes to the return expires

A) April 1, 2025.

B) April 15, 2024.

C) April 15, 2025.

D) The statute of limitations never expires.

4.

What are the correct monthly rates for calculating failure to file and failure to pay penalties?

A)

Failure to file	Failure to pay
5.0%	5.0%

B)

Failure to file	Failure to pay
0.5%	0.5%

C)

Failure to file	Failure to pay
5.0%	0.5%

D)

Failure to file	Failure to pay
0.5%	5.0%

6.

A single taxpayer provided the following information for 2021:

Salary	$80,000
Interest on local government bonds (qualifies as a tax exclusion)	4,000
Allowable itemized deductions	13,000

What is taxable income?

A) $71,000

B) $67,450

C) $80,000

D) $67,000

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