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2018 Federal Tax Law Course II

In this tax subject, we will review some tax rules that relate to the AMT, prior years minimum tax credit, distributions of qualified plans, household employees, the underpayment of tax penalties, filing for claims of refund and penalty abatements. These items dicussed here are not as common and will help bring more clarity for you when they do arise.

Once you complete the 2018 filing a tax return tax law course II, you will have satisfied 8 hours of continuing education which satisfies 8 hours of tax law towards your total continuing education required hours.

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Student Instructions: Follow the following 2 steps:

	Instructions - You should do all of the following (steps 1 - 2)	Links:

Step 1	Read the reading material and answer the questions on this page (scroll down). So before you go to the reading material look at steps 1 and 2 here and at the questions on this page.	Reading Material
Step 2	Take each question below (scroll down) and write a paragraph for each question as part of an essay. Include one paragraph for an introduction and a paragraph for a conclusion. Each paragraph should have at least three complete sentences. Once you have your essay prepared, click on Submit Essay to submit your work one paragraph at a time. You should not go to submit essay until your essay is prepared.	Submit Essay
		Click on Reading Material for the multiple choice exam option

Tax Interview

Question

Introduction - For the introduction part of this essay, you may want to first answer the following eight questions with one paragraph each and then come back to fill in the introduction and mention something from each of the eight paragraphs.

For the AMT, certain items of income, deductions, etc., receive different tax treatment than for the regular tax. How can an tax accountant simply the task of figuring out the alternative minimum tax (assume that the computer will not figure it out for you).

What items in the tax code receive special treatment for the AMT calculation? Do you have to itemize for AMT purposes? If you claim the standard deduction, do you still have to deal with the alternative minimum tax?

What form or forms do you have to prepare to claim the credit for prior year minimum tax? What is the credit about and how can you claim it on your tax return? Which items usually allow for filing for the credit for prior year minimum tax?

Which distributions do you encounter in tax return preparation? What distribution is very common? How do you deal with premature distributions of qualified IRS plans? Can you brieftly explain capital gain distributions? What is considered a capital gain distribution?

What is an ATNOLD? Does an ATNOLD apply for just the current year? What forms are involved in filing the ATNOLD?

Which employees are considered household employee? What are your tax responsibilities if you have a household employee? Who pays the taxes? What other responsibilities may you encounter when you have household employees? What forms do you use to report your household employee for IRS, state and other purposes?

What would make you be subject to estimated tax underpayment penalties? Which situations would get you in trouble with the IRS (or with your state)? Which are ways to satisfy your tax obligations with tax payments to the IRS? Our system is a pay-as-you go system - How do individuals and employers satisfy this part of the tax code?

9

Why would a taxpayer file for a claim of refund? What form do you use or how do you file for a claim of refund? Which items are allowed in a claim of refund and which items you cannot file a claim for? What are substitute ways to file (if any) to get the same results as a claim of refund filing?

Conclusion - For the conclusion part of this essay, you may mention something from the eight previous paragraphs and offer an opinion. What do you think about all this?

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Revised: 03/19/18

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