Understanding the IRS Quiz

Money that is collected by the government from taxes and tariffs

• internal taxes

• income taxes

• revenue

• personal income taxes

The name of the federal agency that collects income taxes in the United States

• IRS

• AARP

• Geico

• FBI

Who has the power to levy taxes?

• President

• Congress

• Supreme Court

• IRS

"No taxation without representation," was a slogan of the

• American Civil War

• Second World War

• American Revolution

• Vietnam War

Congress passed the first income tax during the Civil War.

• true

• false

Items to keep for tax purposes, including paycheck stubs, Form W-4 worksheets, statements of interest or dividends earned, and records of gifts, tips, and bonuses are part of a person's what?

• tax withholding

• financial records

• exempt

• earned income

Being this means being free from withholding of federal income tax.

• tax withholding

• financial records

• exempt

• earned income

For most people, federal income tax is collected

• yearly

• once every 3 months

• on a pay-as-you-go basis

• by the Social Security Administration

On a Form W-4 taxpayers may claim

• unearned income

• withholding allowances

• sick days

• their right to join a union

An employer withholds taxes from an employee's

• holiday and fruit basket

• lottery winnings

• salaries and wages

• interest and dividends