Volunteer Income Tax Assistance (VITA) Certification Practice Test

True or False: When reviewing Form 13614-C, you should ask the taxpayer if they had any other interest income if the "Interest" question is marked "Yes".

1. True

2. False

3. Only if they provide a Form 1099-INT

4. It depends on the amount of interest income

The correct answer is: True

When reviewing Form 13614-C, it is essential to verify the accuracy and completeness of the information provided by the taxpayer. If the "Interest" question is marked "Yes," it indicates that the taxpayer has received interest income from some sources. To accurately prepare their tax return, you should inquire further to identify all possible sources of interest income they may have received. This inquiry includes asking if there are any other instances outside of what is explicitly reported on documents like Form 1099-INT, since taxpayers might overlook smaller interest earnings or accounts that do not generate a form. It’s crucial for compliance and correctness in tax preparation to have a comprehensive understanding of the taxpayer’s financial situation. Thus, confirming any additional interest income ensures that all taxable income is reported and helps avoid potential auditing issues later. By confirming this would also allow you to provide the most accurate tax filing for the taxpayer and potentially ensure they meet their obligations without underreporting income.