To Curb the Practice of Employees Filing False Forms W-4

question 59

Multiple Choice

To curb the practice of employees filing false Forms W-4, the IRS requires that an employer submit to the agency a copy of each Form W-4:

• A) the IRS has requested in writing.
• B) on which an employee, usually earning $180 each week at the time Form W-4 was filed, now claims to be exempt from withholding.
• C) on which an employee claims to be single but has 9 withholding allowances.
• D) on which a married employee claims no withholding allowances.
• E) on which a recently divorced employee claims 5 withholding allowances and authorizes an additional $10 to be withheld each week.

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Definitions:

Deductions

Amounts that can be subtracted from total income for tax purposes, effectively reducing the taxable income.

Exemptions

Provisions that allow individuals or entities to be relieved from an obligation, such as taxes, previously imposed on them.

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations by the government.

Property Taxes

Government-imposed charges on property, calculated from the real estate's worth, intended to finance community facilities and public infrastructure.