Question 1

Match the statements that relate to each other. Note: Some choices may be used more than once.
-Negligence penalty

Accepted Answer

A)  3 years from date return is filed
B)  3 years from due date of return
C)  20% of underpayment
D)  5% per month (25% limit) 
E)  0.5% per month (25% limit) F) Conducted at IRS officeG) Conducted at taxpayer's officeH) 6 yearsI) 45-day grace period allowed to IRSJ) No statute of limitations (period remains open) K) 75% of underpaymentL) No correct match providedM) H) and K)
N) B) and F)

Question 2

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-DIF

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryback and carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) A) and G)
N) E) and L)

Question 3

A major advantage of a flat tax type of income tax is its simplicity.

Accepted Answer

A) True 
 B)False

Question 4

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Accepted Answer

A) True 
 B)False

Question 5

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

Accepted Answer

A) True 
 B)False

Question 6

Social considerations can be used to justify:

Accepted Answer

A)   Allowance of a credit for child care expenses.
B)   Allowing excess capital losses to be carried over to other years.
C)   Allowing accelerated amortization for the cost of installing pollution control facilities.
D)   Allowing a Federal income tax deduction for state and local sales taxes.
E)   None of the above.F) C) and E)
G) C) and D)

Question 7

A state income tax can be imposed on nonresident taxpayers who earn income within the state on an itinerant basis.

Accepted Answer

A) True 
 B)False

Question 8

What is a severance tax? How productive can it be in terms of generating revenue?

Accepted Answer

A severance tax is one imposed when natu...

Question 9

Using the choices provided below, show the justification for each provision of the tax law listed.
-Tax credits for home improvements that conserve energy.

Accepted Answer

A)  Economic considerations
B)  Social considerations
C)  Equity considerationsD) B) and C)
E) None of the above

Question 10

Match the statements that relate to each other. Note: Some choices may be used more than once.
-Failure to file penalty

Accepted Answer

A)  3 years from date return is filed
B)  3 years from due date of return
C)  20% of underpayment
D)  5% per month (25% limit) 
E)  0.5% per month (25% limit) F) Conducted at IRS officeG) Conducted at taxpayer's officeH) 6 yearsI) 45-day grace period allowed to IRSJ) No statute of limitations (period remains open) K) 75% of underpaymentL) No correct match providedM) E) and H)
N) H) and J)

Question 11

Match the statements that relate to each other. Note: Some choices may be used more than once.
-Early filing and statute of limitations (deficiency situations)

Accepted Answer

A)  3 years from date return is filed
B)  3 years from due date of return
C)  20% of underpayment
D)  5% per month (25% limit) 
E)  0.5% per month (25% limit) F) Conducted at IRS officeG) Conducted at taxpayer's officeH) 6 yearsI) 45-day grace period allowed to IRSJ) No statute of limitations (period remains open) K) 75% of underpaymentL) No correct match providedM) F) and I)
N) A) and G)

Question 12

Taylor, a widow, makes cash gifts to her five married children (including their spouses) and to her seven grandchildren. What is the maximum amount Taylor can give for calendar year 2014 without using her unified transfer tax credit?

Accepted Answer

$238,000. $14,000 (a...

Question 13

In connection with facilitating the function of the IRS in the administration of the tax laws, comment on the utility of the following:
a. An increase in the amount of the standard deduction.
b. Dollar and percentage limitations on the deduction of personal casualty losses.
c. Availability of interest and penalties for taxpayer noncompliance.

Accepted Answer

a. An increase in the amount of the stan...

Question 14

Using the choices provided below, show the justification for each provision of the tax law listed.
-A deduction for certain income from manufacturing activities.

Accepted Answer

A)  Economic considerations
B)  Social considerations
C)  Equity considerationsD) None of the above
E) A) and B)

Question 15

Using the choices provided below, show the justification for each provision of the tax law listed.
-Tax brackets are increased for inflation.

Accepted Answer

A)  Economic considerations
B)  Social considerations
C)  Equity considerationsD) B) and C)
E) None of the above

Question 16

Briana lives in one state and works in the adjoining state. Both states tax the income she earns from her job. Does Briana have any relief from this apparent double taxation of the same income?

Accepted Answer

Most states allow their residents some f...

Question 17

In an office audit, the audit by the IRS takes place at the office of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 18

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Jock tax

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryback and carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) A) and B)
N) C) and F)

Question 19

The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.

Accepted Answer

A) True 
 B)False

Question 20

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Tax fraud suspected

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryback and carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) A) and I)
N) F) and G)

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once. -Failure to file penalty

Correct Answer
verified

Correct Answer
verified
a. An increase in the amount of the stan...
View Answer

Using the choices provided below, show the justification for each provision of the tax law listed. -A deduction for certain income from manufacturing activities.

Correct Answer
verified

A state income tax can be imposed on nonresident taxpayers who earn income within the state on an itinerant basis.

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -DIF

Correct Answer
verified

Taylor, a widow, makes cash gifts to her five married children (including their spouses) and to her seven grandchildren. What is the maximum amount Taylor can give for calendar year 2014 without using her unified transfer tax credit?

Correct Answer
verified
$238,000. $14,000 (a...
View Answer

Briana lives in one state and works in the adjoining state. Both states tax the income she earns from her job. Does Briana have any relief from this apparent double taxation of the same income?

Correct Answer
verified
Most states allow their residents some f...
View Answer

Social considerations can be used to justify:

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once. -Early filing and statute of limitations (deficiency situations)

Correct Answer
verified

What is a severance tax? How productive can it be in terms of generating revenue?

Correct Answer
verified
A severance tax is one imposed when natu...
View Answer

In an office audit, the audit by the IRS takes place at the office of the taxpayer.

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once. -Negligence penalty

Correct Answer
verified

Using the choices provided below, show the justification for each provision of the tax law listed. -Tax brackets are increased for inflation.

Correct Answer
verified

A major advantage of a flat tax type of income tax is its simplicity.

Correct Answer
verified

Using the choices provided below, show the justification for each provision of the tax law listed. -Tax credits for home improvements that conserve energy.

Correct Answer
verified

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Tax fraud suspected

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Jock tax

Correct Answer
verified

The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.

Correct Answer
verified

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once. -Failure to file penalty

Correct AnswerverifiedShow Answer

Correct Answerverifieda. An increase in the amount of the stan...View AnswerShow Answer

Using the choices provided below, show the justification for each provision of the tax law listed. -A deduction for certain income from manufacturing activities.

Correct AnswerverifiedShow Answer

A state income tax can be imposed on nonresident taxpayers who earn income within the state on an itinerant basis.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -DIF

Correct AnswerverifiedShow Answer

Taylor, a widow, makes cash gifts to her five married children (including their spouses) and to her seven grandchildren. What is the maximum amount Taylor can give for calendar year 2014 without using her unified transfer tax credit?

Correct Answerverified$238,000. $14,000 (a...View AnswerShow Answer

Briana lives in one state and works in the adjoining state. Both states tax the income she earns from her job. Does Briana have any relief from this apparent double taxation of the same income?

Correct AnswerverifiedMost states allow their residents some f...View AnswerShow Answer

Social considerations can be used to justify:

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once. -Early filing and statute of limitations (deficiency situations)

Correct AnswerverifiedShow Answer

What is a severance tax? How productive can it be in terms of generating revenue?

Correct AnswerverifiedA severance tax is one imposed when natu...View AnswerShow Answer

In an office audit, the audit by the IRS takes place at the office of the taxpayer.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once. -Negligence penalty

Correct AnswerverifiedShow Answer

Using the choices provided below, show the justification for each provision of the tax law listed. -Tax brackets are increased for inflation.

Correct AnswerverifiedShow Answer

A major advantage of a flat tax type of income tax is its simplicity.

Correct AnswerverifiedShow Answer

Using the choices provided below, show the justification for each provision of the tax law listed. -Tax credits for home improvements that conserve energy.

Correct AnswerverifiedShow Answer

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Tax fraud suspected

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Jock tax

Correct AnswerverifiedShow Answer

The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. An increase in the amount of the stan...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$238,000. $14,000 (a...
View Answer

Correct Answer
verified
Most states allow their residents some f...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A severance tax is one imposed when natu...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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