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5. Louie Lotax has prepared 1040 series tax returns for the past five years as an unenrollerd preparer. He has a Preparer Tax Identification Number

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5. Louie Lotax has prepared 1040 series tax returns for the past five years as an unenrollerd preparer. He has a Preparer Tax Identification Number (PTIN) which allowed him to prepare tax returns during the 2016 tax season. Which of the following is mandatory for Louie if he wishes to prepare 1040 series returns during the 2017 tax season? a) He must complete required continuing education. b) He must renew his PTIN by December 31, 2016. c) He must renew his PTIN by December 31, 2016, unless he wishes to identify himself by using his Social Security number when he signs client returns. d) He is not required to take any action since his current PTIN will automatically apply through the 2017 tax season 6. Jason was surprised this year when he did not get as much refund as he anticipated. His tax preparer, Mary, informed Jason that due to his combination of deductions and his income level he is subject to alternative minimum tax (AMT) this year. Mary informed Jason that he may be able to get some relief next year since he paid AMT this year. Which of the following may Jason be entitled to next year due to paying AMT this year? a) A nonrefundable credit against his regular tax by filing Form 8801 b) A refundable credit against his regular tax by filing Form 8801 c) An adjustment to his income d) He will not be entitled to any tax benefit next year for paying AMT this year 7. Kevin and Felicity were married last June. They decided to see a tax professional to get some advice on filing their joint return this year. Felicity is in default on some student loans from college and the IRS seized her tax refund last year. Felicity still owes more than $6,000 and Kevin is concerned the IRS will take his part of the refund if they file together. They both are employed and have federal income tax withheld on their W-2s. What would be the correct advice for Kevin and Felicity? a) They must file separate returns in order for Kevin to receive a refund b) Kevin should file for innocent spouse relief c) Kevin should send a letter to the IRS asking for special relief d) Kevin can file as an injured spouse on the joint return. 8. Amy made timely estimated tax payments of $800. She received an automatic 6-month extension of time to file her 2012 tax return. When she filed her return on October 29, 2013, she paid an additional S300 tax. She filed an amended return claiming a refund of $600 on October 28, 2016. What is the maximum amount of refund Amy can get? a) $1,100 b) 600 c) 300 d) $0

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