IRS Audits, Notices & Recordkeeping - Tax Quiz

Question 1 of 25

As a general rule, how long should you keep your federal tax records after filing a return when no special exceptions apply?

1 year 3 years 10 years Forever

Question 2 of 25

How long should you keep records if you fail to report income that you should report and it is more than 25% of the gross income shown on your return?

3 years 4 years 6 years 2 years

Question 3 of 25

How long does the IRS advise keeping records if you file a fraudulent return?

6 years 7 years Indefinitely 3 years

Question 4 of 25

How long should you keep records if you do not file a tax return at all?

3 years Indefinitely 6 years 1 year

Question 5 of 25

What is the term the IRS uses for the time period that determines how long to keep most tax records?

The period of limitations The grace period The audit window The filing season

Question 6 of 25

How long should you keep records if you file a claim for a loss from worthless securities or a bad debt deduction?

3 years 5 years 7 years 2 years

Question 7 of 25

How does the IRS generally first contact a taxpayer about an issue with their account?

By email By text message By mail through the U.S. Postal Service Through social media

Question 8 of 25

Which of the following is a clear warning sign that a call claiming to be from the IRS is actually a scam?

A demand to pay immediately with a gift card A request to verify your mailing address A reference to a letter you already received An offer to schedule an appointment

Question 9 of 25

What is the only official website domain for the IRS?

irs.com irs.gov irs.org irs.net

Question 10 of 25

What does a CP2000 notice indicate?

Your return has been randomly selected for a field audit Income reported by third parties does not match what you reported Your refund has been approved and is being sent You failed to sign your tax return

Question 11 of 25

Is a CP2000 notice the same as a bill or a formal audit?

Yes, it is a final bill you must pay immediately No, it is a proposal to adjust your return, not a bill or audit Yes, it is a notice that you are being audited No, it is only a reminder to file your return

Question 12 of 25

What should you generally do if you agree with the proposed changes on a CP2000 notice?

Ignore it since the IRS will fix it automatically File a new original tax return for that year Complete, sign, and return the response form by the due date Wait for a second notice before responding

Question 13 of 25

If you disagree with some or all of a CP2000 notice, what does the IRS advise?

Do nothing and let the deadline pass Respond by the due date with a signed statement explaining why Only call, never send anything in writing Pay the full amount to avoid any dispute

Question 14 of 25

When sending supporting documents in response to an IRS notice or audit, what does the IRS recommend?

Send original documents only Send copies, not original documents Send no documents and explain by phone Send notarized originals

Question 15 of 25

What are the two general ways the IRS conducts an audit?

By mail or by an in-person interview By phone or by email By text message or by social media Only at the taxpayer's home

Question 16 of 25

Regardless of audit type, how will the IRS initially notify you that your return has been selected for audit?

By phone call By email By mail By a visit without notice

Question 17 of 25

Does being selected for an IRS audit always mean you did something wrong?

Yes, audits only target wrongdoing No, selection does not always suggest there is a problem Yes, the IRS only audits suspected fraud No, but it always results in additional tax

Question 18 of 25

Which method does the IRS use to help select some returns for audit?

Random selection and computer screening Public voting Alphabetical order of last names Order in which returns were filed

Question 19 of 25

During an IRS audit, what right do you have regarding professional help?

You may not use any representative You have the right to representation by an attorney, CPA, or enrolled agent You may only use an IRS employee You must represent yourself

Question 20 of 25

How many fundamental rights are grouped together in the Taxpayer Bill of Rights?

5 8 10 12

Question 21 of 25

Which of the following is one of the rights in the Taxpayer Bill of Rights?

The Right to Pay No More than the Correct Amount of Tax The Right to Skip Filing in Hardship Years The Right to a Guaranteed Refund The Right to Avoid All Penalties

Question 22 of 25

Under the Right to Finality, what are taxpayers entitled to know?

The maximum time the IRS has to audit a particular tax year The names of the IRS agents reviewing the return The exact refund amount before filing The audit rate for their income bracket

Question 23 of 25

How long does the IRS generally have to assess additional tax after a return is filed?

1 year 3 years 10 years No time limit

Question 24 of 25

Generally, what is the deadline to file a claim for a credit or refund?

3 years from filing the return or 2 years from paying the tax, whichever is later Exactly 1 year from filing the return 5 years from paying the tax There is no deadline

Question 25 of 25

What does a CP3219A statutory notice of deficiency give you the right to do?

Petition the U.S. Tax Court to challenge the proposed changes Automatically delay all tax payments for one year Cancel the tax debt by ignoring the notice Request a new Social Security number