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A colorful and engaging illustration showing various tax forms like 1099, W-2, and IRS documents scattered around with a calculator and a notepad, conveying a sense of tax preparation and knowledge.

Tax Knowledge Challenge

Test your understanding of tax forms, treatments, and implications with our engaging quiz designed for both professionals and learners in the field.

Explore key topics such as:

1099 Form Types
Tax Treaties
Partnership Loss Deductions
LLC Tax Treatments

10 Questions2 MinutesCreated by TaxWizard42

I worked as painter for a real estate company and got paid $2,000. What type of 1099 should I receive?

1099-INT

1099-NEC

1099-MISC

1099-R

When are form 1099 NEC and 1099-MISC due for e-file with the IRS?

1099-NEC January 31 1099-MISC January 31

1099-NEC January 31 1099-MISC March 31

1099-NEC March 31 1099-MISC March 31

1099-NEC March 31 1099-MISC January 31

3. What is the difference between the Form 1042 and 1042-S?

1042-S tells the IRS the taxable revenue. 1042-S tells the IRS the tax deducted

1042 tells the IRS the taxable revenue. 1042-S tells the IRS the tax deducted

The 1042 is the summary for the entity as a whole and the 1042-s is the breakdown by payee

The IRS tries to tax foreigners as much as possible

I am Doron an Israeli citizen (only) and invest in the U.S. I don't want the U.S. To withhold 30% on my 1042. Which income does the treaty allow a witholding under 30%?

Interest

DIvidends

Royalties

All of the Above

What is the most consumed manufactured drink in the world?

Coca Cola

Coffee

Tea

Petel

What type of tax treatment is given to a multi-member LLC

It must be a partnership

It must be treated like a corporation

It can elect can be a partnership or S-corp but not an C-corp

It can elect to be a partneship,C-corp or S-corp.

� In a standard limited partnership the LPs are likely to receive guaranteed payments.

True

False

Steve Howe invested $8,000 in a partnership. During the year he withdrew $5,000. His share of the partnership operating loss for the year is $4,000. Assuming the partnership has no liabilities, what amount of that loss is he eligible to deduct on his personal tax return?

4,000

3,000

3,500

1,000

What is the difference for tax purposes between a single member LLC and a multi-member LLC?

Single member LLC has better tax rates

Single member LLC does not file form 1065 at all. Income goes on schedule C of his 1040

Multi-member LLC has more flexibility to choose the type of entity it wants to be for tax purposes

They are the same

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