23. Gary e-fied his return early in the season and was anxiously anticipating a nice refund. However, when he received his refund check, it wasn't for the full amount. Which of the following is incorrectly listed as a reason Gary's refund may have been reduced? a) Past-due child support b) Debts to another federal agency or state tax c) Delinquent student loans d) Delinquent personal debts 24. Gina is a single parent whose only child got married and moved out in October. When she filed her return, she discovered she could no longer claim her child as a dependent nor could she file as Head of Household. Because she didn't change her federal withholding, she now has a szable balance due on her return. Which of the following statements is true if Gina elects to use the Installment Agreement with the IRS? a) She wil not owe any interest or late payment penalty on the tax not paid by the due date. b) She wil stil owe interest and late payment penalty on the tax not paid by the due date c) She wil only owe interest on the tax not paid by the due date d) She wil only owe late payment penalty on the tax not paid by the due date 25. Gina is a single parent whose only child got married and moved out in October. When she filed her return, she discovered she could no longer claim her child as a dependent nor could she file as Head of Household. Because she didn't change her federal withholding, she now has a sizable balance due on her return. The IRS wll establish an installment agreement with Gina for a fee. She is not below poverty guidelines and does not want payments deducted directly from her bank account, or through a payroll deduction. What is the amount of this fee for tax year 2016? a) b) c) d) 25% of the tax for which the instalment agreement was established $225 5% of the unpaid tax $3 service charge per month 26. Gina is a single parent whose only child got married and moved out in October. When she filed her return, she discovered she could no longer claim her child as a dependent nor could she file as Head of Household. Because she didn't change her federal withholding, she now has a sizable balance due on her return. The IRS has approved an installment agreement for Gina to pay her balance due. Which of the following is incorrectly listed as a reason a taxpayer would be considered to be in default of his installment agreement? a) Does not meet his future tax liablities b) Does not have adequate withholdings c) Does not make required estimated tax payments d) The taxpayer filed for an extension of his current year tax return 27. The Browns employ household workers each year. Which of the following would not be an example of a household worker for which the "nanny tax might apply? a) Babysitter/Child care provider b) Caretakers c) Private nurses d) Interior decorator
