Jim has been divorced from Ann for six months and they have not lived together for two years.

Prior to the final decree, they filed joint returns. During the separation, Ann won $25,000 in the

lottery, which she failed to report. Jim was unaware of Ann's lottery winnings. They have

received an IRS notice that their joint return has been changed to reflect the increased income

and tax liability due to the winnings. They have also been assessed with interest and penalties.

Since both Jim and Ann are liable for any tax, interest, and penalty due, what should Jim do?

a) File Form 8379, Injured Spouse Allocation.

b) File Form 8379, Injured Spouse Allocation, along with an amended return.

c) File Form 8857, Request for Innocent Spouse Relief, since he had no knowledge of the

lottery winnings.

d) File Form 8857, Request for Innocent Spouse Relief, along with an amended return.

Tony is a new paid tax preparer and needs to prepare an amended return for a client. He is

unsure how the return should be filed with the IRS. Which of the following is the correct method

to be used when filing an amended return?

a) A paper return must be filed with the appropriate Internal Revenue Service Center.

b) An amended return can be faxed to the appropriate Internal Revenue Service Center.

c) An amended return can be filed electronically.

d) Tony can scan the amended return and email a copy to the appropriate Internal Revenue

Service Center

Braydon rented a house to a tenant who had 2 large dogs and required the tenant to pay $1,500

for a rental security deposit and $2,000 for a pet security deposit. The tenant signed a 12-

month lease. After 5 months, the tenant stopped paying his rent and suddenly moved out of

the house without notifying Braydon. Braydon visited the house and found the tenant's dogs

had caused damage to the house in the amount of $3,050. Due to the tenant's violation of the

lease, Braydon did not return the rental deposit or the pet security deposit. How much of the

security deposit must Braydon report as income?

a) $ 450

b) $3,050

c) $3,500

d) $ 0