Department of Revenue Rhode Island 2 credits

1. Question

Rhode Island Division of Taxation Compliance notices are issued based on the receipt of information from:

A. Taxpayer filed data.
B. Information supplied by the Internal Revenue Service matching program.
C. Information received from other state agencies.
D. Information from Google Searches.

2. Question

A Single-member Limited Liability Company (SMLLC) and a Sole Proprietor are different in which of the following characteristics:

A. A SMLLC is a separate entity from its owner while a sole proprietor is the owner.
B. A SMLLC is subject to an annual fee of $400 per year and a separate filing requirement while a sole proprietor does not have a separate annual fee or filing requirement.
C. A SMLLC has a registration date and dissolution date.
D. All of the above

3. Question

As of Tax Year 2025, what is the number of years the Net Operating Loss Carryforward is allowed for Rhode Island tax purposes?

A. 1 year
B. 5 years
C. 20 years
D. 25 years

4. Question

For Tax Year 2024, the income threshold for social security income which is taxable on a taxpayer’s federal income tax return to be exempt in Rhode Island is:

A. $104,200 for single filing status
B. $132,350 for joint filing status
C. $98,750 for single filing status
D. $104,200 for joint filing status

5. Question

When does Non-resident Real Estate Withholding apply?

A. All real estate transactions in Rhode Island.
B. Real estate transactions for Rhode Island residents.
C. Real estate transactions for Rhode Island non-residents.
D. None of the above

6. Question

Starting 1/1/25, what will the rate for the ENDS tax in Rhode Island be?

A. 80% of the wholesale cost.
B. $4.50 per stamp.
C. 10% of the wholesale cost for open systems and $0.50/ML for closed systems.
D. A graduated rate based on the number of milliliters.

7. Question

What is a reason an estate below the taxable threshold may be required to file an RI-706?

A. Every estate of a descendant must file a tax return.
B. To obtain a discharge of the automatic statutory lien that attaches to all real estate that a decedent owns at death.
C. To provide a release to social security for last payment.
D. For creditors to show the closure of the estate.

8. Question

Rhode Island has an electronic filing and payment mandate. What is the threshold for a business to be subject to the mandate?

A. Combined annual tax liability of $5,000 across all taxes.
B. Over $100,000 in annual gross income for the entity.
C. Neither a. nor b.
D. Either a. or b.

9. Question

When is a business be required to obtain a sales permit?

A. When a business is selling taxable goods.
B. Every business making sales at retail or renting living quarters.
C. Only businesses selling goods at wholesale and need to provide a resale certificate.
D. A local youth league selling items under $20 in value.

10. Question

Common errors on Personal and Corporate Income Tax returns do not usually include:

A. Incorrect document codes.
B. Taxpayer’s name is not consistent year to year.
C. Excluded Non-Resident Real Estate Withholding on Schedule W.
D. Federal Identification Number is incorrect.