Exam 2: Tax Compliance, the Irs, and Tax Authorities

Leslie made a mathematical mistake in computing her tax liability.Which audit program will likely catch Leslie's mistake?

The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree to a proposed IRS adjustment on the taxpayer's income tax return.

Andy filed a fraudulent 2019 tax return on May 1, 2020.The statute of limitations for IRS assessment on Andy's 2019 tax return should end:

Circular 230 was issued by:

Bill filed his 2019 tax return on March 15^th, 2020.The statute of limitations for IRS assessment on Bill's 2019 tax return should end:

For fraudulent tax returns, the statute of limitations for IRS assessment is 10 years.

As required by the Constitution, all tax bills are supposed to originate in the House of Representatives.

Campbell was researching a tax issue and found a favorable tax court opinion and an IRC Code

Which of the following has the highest authoritative weight?

Which of the following committees typically initiates tax legislation?

Martin has never filed a 2019 tax return despite earning approximately $30,000 providing landscaping work in the community.In what tax year, will the statute of limitations expire for Martin's 2019 tax return?

Mel recently received a 30-day letter from the IRS.Although his tax return being audited has several potential large issues (potential tax consequences of $70,000 − $80,000), the IRS agent auditing his return only identified one item that will require a modest adjustment of $10,000.Mel feels strongly that the $10,000 adjustment would not hold up in court and was surprised that the IRS agent did not identify some of the other potential larger issues.What are Mel's choices with respect to the 30-day letter and what factors should influence his decisions?

In researching a tax issue, Eric finds that the U.S.Circuit Court of Appeals for the Federal Circuit previously has ruled in favor of his tax position, whereas the 11^th Circuit (Eric's circuit)previously has ruled against his tax position.If Eric is contemplating litigating his tax position with the IRS, he should prefer to have his case first tried by the U.S.Tax Court.

Greg earned $25,500 this year and had $1,500 of federal income taxes withheld from his salary.Assuming that Greg is single, 25 years old, and will have a total tax liability of $1,402 (and thus will receive a $98 refund), he:

If a taxpayer loses a case at the circuit court level, he is granted an automatic appeal hearing with the Supreme Court.

A taxpayer can avoid an underpayment penalty if there is substantial authority that supports her tax return position.

Carey was researching a tax issue and located what appears to be a favorable IRS regulation.He knows that regulations serve different purposes and are issued in different forms.Which purpose and which form of regulation would provide Carey the most confidence that he has found an authority that carries a lot of weight for the long term? How could Carey check the status of this regulation?

Revenue rulings and revenue procedures are examples of primary authorities.

For which of the following tax violations is a civil penalty not imposed on taxpayers?

Roddy was researching an issue and found a favorable tax court decision that addresses his issue.He also determined that there was a nonacquiescence for the case.Who issued the nonacquiescence? What is it? What does it mean and how would it affect Roddy's reliance on the court case?