PBMF Test Review

An ________ ______ is a tax assessed on cash or the value of property which is passed from a person's ________, once this person has died, to one of his __________.

estate tax, estate, beneficiaries

A self-employed person pays ________ than another employee in taxes, because basically, they are paying ____ parts.

more, two

Which number of dependents claimed on a W-4 will have the most income tax withholding taken out of your paycheck?

0

On the local levels, _____ and ______ governments and public ______________ _____________ all have the ability to collect taxes.

County, City, School Districts

What entities writes state's tax laws?

Each State

___________ taxes are paid by you if you work for someone using your own equipment and wither at your own work area or _________ from this person or company's actual building.

Estimated, offsite

What is the most common tax on the federal level?`

Income Tax

Which of the following is the federal bureau which collects taxes and turns the money over to the Treasury Department?

Internal Revenue Service

On the federal level, the _______ ___________ _______, which is part of the U.S ___________ department, is responsible for enforcing the tax laws written by Congress and approved by the __________ for processing tax returns, and for issuing tax refunds.

Internal Revenue Service, Treasury, President

Which entity does NOT have the ability to collect taxes on the local level?

Politicians

THE IRS is NOT responsible for what?

Promoting economic prosperity

When you go to work as an employee for an employer, you will be given a ______ ________ to complete before you will ever get your first paycheck.

W4 Form

An excise tax is a tax on the manufacturing, sale and _______ of products such as __________ or __________.

consumption, tobacco, alcohol

The most common tax on the federal level is the federal ______ tax.

income

The federal income tax system is really a ___ - ___- ___- ___ kind of tax system.

pay-as-you-go

On the local level, local governments also collect ______ taxes.

property

Most people in this type of situation usually make their payments to the IRS on a ______________ basis. That is every ________ month of the year.

quarterly, third

The government collects those taxes for various reasons. The main reason would be __________

revenue

With that __________, that is what allows the government to be able to provide the ________ the government provides.`

revenue, services

Common taxes collected by local governments are the __________ _______ and ________ ________.

sales taxes, property taxes

States can also collect a ______ tax, which is usually a flat ________ of an item you, as a consumer, purchase

sales, percentage

On the state level, each state writes its own ______ ______ and each state has its own agency which collects the taxes and then distributes it to the appropriate state agencies so they can pay the state's __________

tax laws, expenses

Any US citizen who earns an income is subject to filing a federal income _______ ______ and depending on how much _________ they earn in one year, paying a portion of that income to the _______.

tax return, income, IRS