Exam 15: Administrative Procedures

Terry files his return on March 31.The return shows taxes of $6,000,and Terry pays this entire amount when he files his return.By what time must he file a claim of refund?

Identify which of the following statements is false.

Identify which of the following statements is true.

The IRS will issue a 90-day letter (a Statutory Notice of Deficiency)if the taxpayer does not file a protest letter within 30 days of the date of the 30-day letter.

A calendar-year individual taxpayer files last year's income tax return on July 1 of the current year.No extension was requested,and there is not a reasonable cause for the late filing.The return shows a balance due of $800 of tax.The late filing penalty is

A taxpayer can automatically escape the penalty for underpayment of taxes by

Identify which of the following statements is false.

If Brad files his last year's individual tax return on July 5 of the current year after having requested an extension,what is the amount of his failure-to-pay penalty if his total tax is $10,000 and he paid $9,500 through timely withholding and $500 with the return?

A taxpayer's return is audited and additional taxes are assessed.The IRS also asserts that a negligence penalty should be assessed.The taxpayer concurs with the additional $15,000 tax liability; $7,000 of this amount is attributable to negligence.What is the amount of the penalty for negligence?

Identify which of the following statements is false.

Identify which of the following statements is true.

Identify which of the following statements is false.

Treasury Department Circular 230 regulates the practice of attorneys,CPAs,enrolled agents,and enrolled actuaries before the IRS.

In which of the situations below will a taxpayer not be assessed interest on the tax remitted?

On April 15,2018,a married couple filed their joint 2017 tax return showing gross income of $120,000.Their return was prepared by a professional tax preparer who mistakenly omitted $45,000 of income,which the preparer in good faith considered to be nontaxable.No information with regard to this omitted income was disclosed on the return or attached statements.By what date must the IRS assert a notice of deficiency before the statute of limitations expires?

If the taxpayer has credible evidence,the IRS bears the burden of proof in a tax dispute.

The court in which the taxpayer does not have to pay the tax and then litigate for a refund is the

All of the following requirements must be met in order to establish innocent spouse relief except which of the following?

Identify which of the following statements is true.

What is the penalty for a tax return preparer who willfully attempts to understate taxes,or intentionally disregards the tax rules and regulations?