Question 1

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

Accepted Answer

A) True 
 B)False

Question 2

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

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) D) and G)
N) F) and H)

Question 3

For the negligence penalty to apply,the underpayment must be caused by intentional disregard of rules and regulations without intent to defraud.

Accepted Answer

A) True 
 B)False

Question 4

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on corporations.

Accepted Answer

A) True 
 B)False

Question 5

The tax law allows an income tax deduction (or a credit)for foreign income taxes.Explain why.

Accepted Answer

The deduction (or a credit)for...

Question 6

If a taxpayer files early (i.e. ,before the due date of the return),the statute of limitations on assessments begins on the date the return is filed.

Accepted Answer

A) True 
 B)False

Question 7

Which,if any,of the following is a typical characteristic of an ad valorem tax on personalty?

Accepted Answer

A)  Taxpayer compliance is greater for personal use property than for business use property.
B)  The tax on automobiles sometimes considers the age of the vehicle.
C)  Most states impose a tax on intangibles.
D)  The tax on intangibles generates considerable revenue since it is difficult for taxpayers to avoid.
E)  None of these.F) A) and D)
G) A) and E)

Question 8

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 B)
N) F) and K)

Question 11

Even though a client refuses to correct an error on a past return,it may be possible for a practitioner to continue to prepare returns for the client.

Accepted Answer

A) True 
 B)False

Question 12

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

Accepted Answer

A) True 
 B)False

Question 13

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

Accepted Answer

A) True 
 B)False

Question 14

In cases of doubt,courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Accepted Answer

A) True 
 B)False

Question 15

Using the choices provided below,show the justification for each provision of the tax law listed.
-A tax credit for amounts spent to furnish care for children while the parent is at work.

Accepted Answer

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

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

Which,if any,of the following is a typical characteristic of an ad valorem tax on personalty?

Correct Answer
verified

For the negligence penalty to apply,the underpayment must be caused by intentional disregard of rules and regulations without intent to defraud.

Correct Answer
verified

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

Correct Answer
verified

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on corporations.

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

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

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

Correct Answer
verified

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Correct Answer
verified

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

Correct Answer
verified

The tax law allows an income tax deduction (or a credit)for foreign income taxes.Explain why.

Correct Answer
verified
The deduction (or a credit)for...
View Answer

In cases of doubt,courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Correct Answer
verified

Even though a client refuses to correct an error on a past return,it may be possible for a practitioner to continue to prepare returns for the client.

Correct Answer
verified

If a taxpayer files early (i.e. ,before the due date of the return),the statute of limitations on assessments begins on the date the return is filed.

Correct Answer
verified

Using the choices provided below,show the justification for each provision of the tax law listed. -A tax credit for amounts spent to furnish care for children while the parent is at work.

Correct Answer
verified

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

Correct Answer
verified

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

Which,if any,of the following is a typical characteristic of an ad valorem tax on personalty?

Correct AnswerverifiedShow Answer

For the negligence penalty to apply,the underpayment must be caused by intentional disregard of rules and regulations without intent to defraud.

Correct AnswerverifiedShow Answer

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

Correct AnswerverifiedShow Answer

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on corporations.

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

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

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

Correct AnswerverifiedShow Answer

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The tax law allows an income tax deduction (or a credit)for foreign income taxes.Explain why.

Correct AnswerverifiedThe deduction (or a credit)for...View AnswerShow Answer

In cases of doubt,courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Correct AnswerverifiedShow Answer

Even though a client refuses to correct an error on a past return,it may be possible for a practitioner to continue to prepare returns for the client.

Correct AnswerverifiedShow Answer

If a taxpayer files early (i.e. ,before the due date of the return),the statute of limitations on assessments begins on the date the return is filed.

Correct AnswerverifiedShow Answer

Using the choices provided below,show the justification for each provision of the tax law listed. -A tax credit for amounts spent to furnish care for children while the parent is at work.

Correct AnswerverifiedShow Answer

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

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

Correct Answer
verified

Correct Answer
verified
The deduction (or a credit)for...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified