AI Extraction of W-2s, 1099s and Tax Documents Quiz

Answers and explanations appear as you take the quiz.

1. In the extraction pipeline, what does layout analysis do?
   • Converts pixels into text characters
   • Determines which text belongs to which box on the form
   • Files the return with the IRS
   • Calculates the final tax owed
2. A W-2 shows Box 4 Social Security tax far from the expected share of Box 3. What does this most likely signal?
   • The employee owes no tax
   • A possible misread or error that needs review
   • The form is a 1099 instead
   • The employer is exempt from Social Security
3. How is a corrected W-2 issued?
   • On a W-2 with a CORRECTED checkbox
   • On a separate form called the W-2c
   • Only by phone from the IRS
   • As a 1099-MISC
4. What goes wrong if both an original 1099 and its corrected version are entered?
   • The IRS rejects the return automatically
   • Income is double-counted
   • Withholding is erased
   • Nothing, because software ignores duplicates
5. Why does direct data import from a payer avoid some errors that photo capture has?
   • It skips optical character recognition entirely
   • It guarantees the payer made no mistakes
   • It removes the need to file
   • It hides the data from the IRS
6. If the payer's form contains an error, what will accurate extraction do?
   • Automatically fix it
   • Copy the error faithfully onto the return
   • Report the payer to the IRS
   • Delete the form
7. Which fields should deduplication logic use to identify the same form?
   • Taxpayer's favorite color and date uploaded
   • Payer EIN, form type and account number
   • Only the dollar amount in Box 1
   • The file name of the photo
8. For consolidated brokerage statements, what does the guide say is usually more reliable than trusting each extracted row?
   • Reconciling extracted transactions against the statement's summary totals
   • Rounding all values
   • Entering only the first page
   • Skipping cost basis entirely