AI for Tax Preparers Quiz

Answers and explanations appear as you take the quiz.

1. Which documents does the guide say AI extraction handles least reliably during intake?
   • Standard W-2 forms
   • Form 1098 mortgage interest statements
   • Standard 1099-INT forms
   • Partnership K-1s with long footnotes and scanned brokerage statements
2. A preparer claims the earned income credit for a client. What can an AI chatbot not do on the preparer's behalf?
   • Draft a reminder email
   • Make and record the reasonable inquiries required by Form 8867
   • Pull the amounts from a W-2
   • Track missing documents
3. Which provision restricts how preparers use and disclose tax return information?
   • IRC §7216
   • IRC §179
   • IRC §1031
   • IRC §401(k)
4. Under the §7216 rules as the guide describes them, which disclosure can require client consent?
   • Sending the client a copy of their own return
   • Filing the return with the IRS
   • Certain disclosures of return information outside the United States
   • Discussing the return with the client
5. What does the FTC Safeguards Rule require of tax preparers?
   • Filing all returns electronically
   • Keeping a written information security plan
   • Using only IRS-approved AI tools
   • Encrypting paper files
6. What is the recommended scope for a client-portal assistant during busy season?
   • Answering any tax question without review
   • Filing extensions automatically
   • Choosing tax positions for simple returns
   • Workflow status and document requests, with tax questions sent to a preparer
7. Which cross-check can catch an extraction error on a W-2?
   • Social Security wages times 6.2% should roughly match Social Security tax withheld, up to the wage base
   • Box 1 wages must equal the prior year's wages
   • State tax must equal federal tax
   • The employer's EIN must match the client's SSN
8. Who is subject to penalties under IRC §6694 for an unreasonable position on an AI-assisted return?
   • The AI software vendor
   • The client's employer
   • The tax return preparer
   • The IRS examiner