120+ Free EA Part 1 Practice Questions

Explanation: The standard filing deadline for individual federal income tax returns (Form 1040) is April 15. If April 15 falls on a weekend or holiday, the deadline is extended to the next business day. Taxpayers can request an automatic 6-month extension using Form 4868, which extends the filing deadline to October 15 but does not extend the time to pay.

Explanation: Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, provides an automatic 6-month extension (to October 15). However, it is important to remember that this only extends the time to file, not the time to pay. Any tax owed must still be paid by April 15 to avoid interest and penalties.

Explanation: The failure-to-file penalty is 5% of the unpaid tax for each month or partial month the return is late, up to a maximum of 25%. This is significantly higher than the failure-to-pay penalty (0.5% per month), which is why the IRS advises taxpayers to file on time even if they cannot pay the full amount owed.

Explanation: The failure-to-file penalty is 5% of the unpaid tax per month or partial month, up to 25%. Robert was late by 4 months (May, June, July, August). The penalty is 5% x 4 months x $4,000 = $800. If both failure-to-file and failure-to-pay penalties apply for the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty amount for that month.

Explanation: Form 1040-X, Amended U.S. Individual Income Tax Return, is used to correct errors or make changes to a previously filed Form 1040. Taxpayers generally have 3 years from the date they filed the original return (or 2 years from the date they paid the tax, whichever is later) to file an amended return and claim a refund.

Explanation: Under IRC Section 6695(c), a paid tax preparer who fails to furnish their Preparer Tax Identification Number (PTIN) on a return faces a $60 penalty per failure for 2025 (indexed annually for inflation). All paid preparers must obtain and use a PTIN. The penalty applies per return where the PTIN is missing, up to a maximum of $31,500 in a calendar year.

Explanation: For tax year 2025, a single taxpayer under age 65 must file if their gross income is at least $15,000, which equals the standard deduction amount for that filing status. The filing threshold is generally equal to the standard deduction amount. Taxpayers age 65 or older get a higher standard deduction and thus a higher filing threshold.

Explanation: The failure-to-pay penalty is 0.5% of the unpaid tax for each month or partial month it remains unpaid, up to a maximum of 25%. This rate increases to 1% per month if the IRS issues a notice of intent to levy and the taxpayer does not pay within 10 days. If an approved extension is filed, the rate drops to 0.25% per month during the extension period.

Explanation: Head of Household provides the most favorable tax rates and a higher standard deduction ($22,500 for 2025) compared to Single ($15,000 for 2025). To qualify, the taxpayer must be unmarried (or considered unmarried) on the last day of the year, have paid more than half the cost of keeping up a home, and have a qualifying person living with them for more than half the year.

Explanation: Jennifer can file as Qualifying Surviving Spouse for 2025 because her spouse died in 2024 (within the prior 2 tax years), she has a dependent child, and she has not remarried. This status allows her to use the same standard deduction and tax rates as Married Filing Jointly for up to 2 years after the year of the spouse's death (2025 and 2026).