1.

What are tax attributes on Form 982?

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Tax credits that are available to taxpayers who operate businesses in energy, pharmaceutical, and mining industries.

Deductions or credit carryovers that reduce either taxable income or tax liability.

Tax deductions that are available to recent graduates of medical and dental school who agree to work in rural or blighted urban areas.

Student loan debt cancellation (that is exempt from income) for recent graduates of medical and dental school who agree to work in rural or blighted urban areas.

2.

How is a theft loss of inventory claimed on a sole proprietor's tax return?

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Inventory loss is reported on Schedule D as an investment sale. Sales price is $0, and purchase price is the basis.

Form 4684 is completed and no adjustments are made on the Schedule C.

Inventory loss is reported on Form 4797, Sales of Business Property. Sales price is $0, and purchase price is the basis.

No additional tax form is needed, and no adjustment is made on Schedule C.

3.

When a taxpayer owns a part rental/part personal-use property, how is mortgage interest on that property treated on the tax return?

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Prorated deduction on Schedule E and Schedule C.

Prorated deduction on Schedule E and Schedule A.

The taxpayer can choose to deduct the full amount on either Schedule E or Schedule A.

Fully deducted on Schedule E.

4.

Which of the following actions may the IRS take when a taxpayer on an installment payment agreement fails to file an income tax return in a timely manner?

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Double their monthly payment amount.

Revoke their installment payment agreement.

Levy their wages or funds on deposit.

Seize their property.

5.

Why is it important to know what ministerial services are for a member of the clergy?

*	The wages of clergy who perform ministerial services are not included in gross income.
	Earnings from ministerial services are subject to SE tax, unless the member of the clergy has an exemption.
	Earnings from ministerial services are automatically exempt from SE tax.
	A member of the clergy who performs ministerial services pays social security and medicare taxes under FICA.