Question 1

Which of the following courts is the only court that provides for a jury trial?

Accepted Answer

A) Tax Court. 
B) U)S.Court of Federal Claims. 
C) U)S.District Court. 
D) U)S.Circuit Court of Appeals. 
E) None of the choices are correct. 
A) Tax Court. 
B) U)S.Court of Federal Claims. 
C) U)S.District Court. 
D) U)S.Circuit Court of Appeals. 
E) None of the choices are correct.

Question 2

Ramon's tax return was randomly selected for audit.Which IRS program likely selected Ramon's return for audit?

Accepted Answer

A) DIF system. 
B) National Research Program. 
C) Document perfection. 
D) Information matching. 
E) None of the choices are correct. 
A) DIF system. 
B) National Research Program. 
C) Document perfection. 
D) Information matching. 
E) None of the choices are correct.

Question 3

A taxpayer can avoid a substantial understatement of tax penalty:

Accepted Answer

A) if the position is frivolous and disclosed on the tax return. 
B) if the position has a realistic possibility of being sustained by the IRS or courts. 
C) if there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of the choices are correct. 
A) if the position is frivolous and disclosed on the tax return. 
B) if the position has a realistic possibility of being sustained by the IRS or courts. 
C) if there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of the choices are correct.

Question 4

Kodak is a beginning tax researcher.He knows that the first step of the research process is to get an understanding of the facts surrounding the transaction being researched.Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Accepted Answer

To answer a tax question, you must under

Question 5

Which of the following audits is the most common and typically less comprehensive?

Accepted Answer

A) Correspondence. 
B) Random. 
C) Office. 
D) Field. 
E) None of the choices are correct. 
A) Correspondence. 
B) Random. 
C) Office. 
D) Field. 
E) None of the choices are correct.

Question 6

Mary Ann is working on a pretty big research project.Her manager has alerted her to the possibility that some of her research questions are likely to be questions of fact, whereas others are likely to be questions of law.Explain the difference between the two types of questions and how this would influence her research.

Accepted Answer

Two basic types of issues that researche

Question 7

Lavonda discovered that the 5th Circuit (where Lavonda resides)has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

Accepted Answer

A) Tax Court only. 
B) U)S.Court of Federal Claims only. 
C) U)S.District Court only. 
D) Tax Court or the U.S.District Court. 
E) Tax Court or the U.S.Court of Federal Claims. 
A) Tax Court only. 
B) U)S.Court of Federal Claims only. 
C) U)S.District Court only. 
D) Tax Court or the U.S.District Court. 
E) Tax Court or the U.S.Court of Federal Claims.

Question 8

Generally, if April 15th falls on a Saturday, individual tax returns will be due on:

Accepted Answer

A) April 14th. 
B) April 15th. 
C) April 16th. 
D) April 17th. 
E) None of the choices are correct. 
A) April 14th. 
B) April 15th. 
C) April 16th. 
D) April 17th. 
E) None of the choices are correct.

Question 9

Basu received a letter from the IRS that gave him the choice of (1)paying a proposed deficiency or (2)filing a petition with the U.S.Tax Court.Basu received the:

Accepted Answer

A) 30-day letter. 
B) 90-day letter. 
C) Appeals letter. 
D) Tax adjustment letter. 
E) None of the choices are correct. 
A) 30-day letter. 
B) 90-day letter. 
C) Appeals letter. 
D) Tax adjustment letter. 
E) None of the choices are correct.

Question 10

If a taxpayer is due a refund, she does not have to file a tax return.

Accepted Answer

A) True 
 B)False

Question 11

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S.District Court to contest the adjustment and hear the case.

Accepted Answer

A) True 
 B)False

Question 12

Which types of penalties are only imposed after normal due process including a trial?

Accepted Answer

A) criminal penalties. 
B) civil penalties. 
C) criminal and civil penalties. 
D) Failure-to-file penalty. 
E) None of the choices are correct. 
A) criminal penalties. 
B) civil penalties. 
C) criminal and civil penalties. 
D) Failure-to-file penalty. 
E) None of the choices are correct.

Question 13

Which judicial doctrine means that a court will rule consistently with its previous rulings and the rulings of higher courts with appellate jurisdiction?

Accepted Answer

A) Judicial hierarchy. 
B) The Goldman rule. 
C) Judicial consistency. 
D) Stare decisis. 
E) None of the choices are correct. 
A) Judicial hierarchy. 
B) The Goldman rule. 
C) Judicial consistency. 
D) Stare decisis. 
E) None of the choices are correct.

Question 14

Henry filed his 2019 tax return on May 15th, 2020.The statute of limitations for IRS assessment on Henry's 2018 tax return should end:

Accepted Answer

A) May 15th, 2022. 
B) April 15th, 2022. 
C) May 15th, 2023. 
D) April 15th, 2023. 
E) None of the choices are correct. 
A) May 15th, 2022. 
B) April 15th, 2022. 
C) May 15th, 2023. 
D) April 15th, 2023. 
E) None of the choices are correct.

Question 15

If an individual taxpayer is unable to file a tax return by its original due date, the taxpayer can request an automatic nine-month extension to file the return.

Accepted Answer

A) True 
 B)False

Question 16

Tina has a very complex tax return and it looks like she will not be able to file her tax return by its due date.When is her tax return due? What are Tina's options for paying her tax due and filing her tax return this year? What are the consequences if Tina does not file or pay her tax in a timely manner? Be specific.

Accepted Answer

Tina's tax return is due on April 15^th.Tin

Question 17

For the following tax returns, identify which of the three audit types will most likely be utilized.
a.The IRS selected Don's return for audit because of his high itemized deductions.The IRS would like documentation of these deductions.
b.Large Public Corporation is a very large publicly traded corporation.It is involved in many complex transactions that have significant tax ramifications.
c.George and Barbara operate a small business out of their home.The IRS has identified a couple of issues that may relate to their business.
d.The IRS selected Bill and Hillary's tax return for review because of some of their investment sales.They would like a better understanding of the transactions and parties involved.

Accepted Answer

(a)Correspondence examination

Question 18

A client has recently learned of a proposed tax bill that would increase the tax rates on investment gains by 5 percent.The president does not support this increase.Please describe for your client the process by which new tax legislation is created and how the president's disapproval may influence the enactment of the bill.

Accepted Answer

As required by the U.S.Constitution (Art

Question 19

Proposed and temporary regulations have the same authoritative weight.

Accepted Answer

A) True 
 B)False

Question 20

The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed.

Accepted Answer

A) True 
 B)False

Which of the following courts is the only court that provides for a jury trial?

Ramon's tax return was randomly selected for audit.Which IRS program likely selected Ramon's return for audit?

A taxpayer can avoid a substantial understatement of tax penalty:

Kodak is a beginning tax researcher.He knows that the first step of the research process is to get an understanding of the facts surrounding the transaction being researched.Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Which of the following audits is the most common and typically less comprehensive?

Lavonda discovered that the 5^th Circuit (where Lavonda resides)has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

Generally, if April 15^th falls on a Saturday, individual tax returns will be due on:

Basu received a letter from the IRS that gave him the choice of (1)paying a proposed deficiency or (2)filing a petition with the U.S.Tax Court.Basu received the:

If a taxpayer is due a refund, she does not have to file a tax return.

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S.District Court to contest the adjustment and hear the case.

Which types of penalties are only imposed after normal due process including a trial?

Which judicial doctrine means that a court will rule consistently with its previous rulings and the rulings of higher courts with appellate jurisdiction?

Henry filed his 2019 tax return on May 15^th, 2020.The statute of limitations for IRS assessment on Henry's 2018 tax return should end:

If an individual taxpayer is unable to file a tax return by its original due date, the taxpayer can request an automatic nine-month extension to file the return.

Proposed and temporary regulations have the same authoritative weight.

The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed.

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Filters

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

Which of the following courts is the only court that provides for a jury trial?

Ramon's tax return was randomly selected for audit.Which IRS program likely selected Ramon's return for audit?

A taxpayer can avoid a substantial understatement of tax penalty:

Kodak is a beginning tax researcher.He knows that the first step of the research process is to get an understanding of the facts surrounding the transaction being researched.Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Which of the following audits is the most common and typically less comprehensive?

Lavonda discovered that the 5th Circuit (where Lavonda resides)has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

Generally, if April 15th falls on a Saturday, individual tax returns will be due on:

Basu received a letter from the IRS that gave him the choice of (1)paying a proposed deficiency or (2)filing a petition with the U.S.Tax Court.Basu received the:

If a taxpayer is due a refund, she does not have to file a tax return.

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S.District Court to contest the adjustment and hear the case.

Which types of penalties are only imposed after normal due process including a trial?

Which judicial doctrine means that a court will rule consistently with its previous rulings and the rulings of higher courts with appellate jurisdiction?

Henry filed his 2019 tax return on May 15th, 2020.The statute of limitations for IRS assessment on Henry's 2018 tax return should end:

If an individual taxpayer is unable to file a tax return by its original due date, the taxpayer can request an automatic nine-month extension to file the return.

Proposed and temporary regulations have the same authoritative weight.

The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed.

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Filters

Lavonda discovered that the 5^th Circuit (where Lavonda resides)has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

Generally, if April 15^th falls on a Saturday, individual tax returns will be due on:

Henry filed his 2019 tax return on May 15^th, 2020.The statute of limitations for IRS assessment on Henry's 2018 tax return should end: