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Test Your Knowledge of the IRS
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| 1. | "If I am in a certain tax bracket, for example, 31 percent, it means that my tax liability is 31 percent of my income." |
| | TRUE |
| | FALSE |
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| 2. | "I've just received a huge refund from the IRS. I sure know how to beat them at their own game. Isn't this great." |
| | TRUE |
| | FALSE |
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| 3. | "When I receive my inheritance from uncle Leo, the IRS will take out a chunk of it." |
| | TRUE |
| | FALSE |
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| 4. | "A parent or grandparent can make tuition payments for children or grandchildren which are not taxable." |
| | TRUE |
| | FALSE |
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| 5. | "It's a great relief to confer with my accountant about my tax troubles because whatever we discuss he will hold in the strictest confidence." |
| | TRUE |
| | FALSE |
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| 6. | "Now that I have been audited by the IRS, and had money due, I will be audited every year." |
| | TRUE |
| | FALSE |
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| 7. | "By filing a timely Form 4868 (Application for Automatic Extension of Time To File U.S. Income Tax Return), I will be excused from all penalties and interest as long as I file my tax return within the extension period and pay the balance of tax that is due." |
| | TRUE |
| | FALSE |
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| 8. | "If my tax return results in a refund, I will not be charged penalties or interest for late filing because late filing penalties and interest are based on the balance of tax due." |
| | TRUE |
| | FALSE |
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| 9. | "Cash contributions of $250 or more require a detailed receipt from the charitable organization attached to your 1040." |
| | TRUE |
| | FALSE |
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| 10. | "I only need a detailed receipt for a single cash contribution of $250 or higher." |
| | TRUE |
| | FALSE |
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| 11. | "If I file my return after April 15th with an extension, it will slip by the IRS without being selected for audit." |
| | TRUE |
| | FALSE |
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| 12. | "If I am involved with IRS personnel in any way, I should behave decently." |
| | TRUE |
| | FALSE |
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| 13. | "If I hand in a neat return I am less likely to be audited." |
| | TRUE |
| | FALSE |
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| 14. | "If I use a car in my business, I will obtain greater deductions if I buy the car instead of leasing." |
| | TRUE |
| | FALSE |
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| NOTE: The information from this quiz is based on the book What the IRS Doesn't Want You to Know by Martin Kaplan, CPA, and Naomi Weiss, Villard Publishers. A qualified tax professional should always be consulted before utilizing any of the information contained in this quiz. |
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