Question 1

The chief executive of the IRS is the _________________________.

Accepted Answer

Commissioner

Question 2

The tax__________ workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena.

Accepted Answer

accrual

Question 3

Which of the following statements does not reflect the rules governing the accuracy-related penalty for negligence?

Accepted Answer

A)  The penalty rate is 20%. 
B)  The penalty applies whenever the taxpayer takes a return position that is contrary to a court decision. 
C)  The penalty applies when the taxpayer does not keep records adequate to compute the tax correctly. 
D)  The penalty is waived if the taxpayer uses Form 8275 to disclose a return position that is reasonable but contrary to the IRS position. 
A)  The penalty rate is 20%. 
B)  The penalty applies whenever the taxpayer takes a return position that is contrary to a court decision. 
C)  The penalty applies when the taxpayer does not keep records adequate to compute the tax correctly. 
D)  The penalty is waived if the taxpayer uses Form 8275 to disclose a return position that is reasonable but contrary to the IRS position. B

Question 4

The IRS is one of the largest Federal agencies, employing almost ______people throughout the year.

Accepted Answer

The answer of The IRS is one of the largest...

Question 5

According to the IRS, the annual tax gap totals over $______ billion.

Accepted Answer

The answer of According to the IRS, the annual tax...

Question 6

This official does not report directly to the IRS Commissioner.

Accepted Answer

A)  Treasury Secretary. 
B)  National Taxpayer Advocate. 
C)  Director of the Whistleblower Office. 
D)  Chief Appeals Officer. 
A)  Treasury Secretary. 
B)  National Taxpayer Advocate. 
C)  Director of the Whistleblower Office. 
D)  Chief Appeals Officer.

Question 7

An individual's amended tax return that computes a refund or amount due generally uses Form
____________________.

Accepted Answer

The answer of An individual's amended tax return that computes...

Question 8

Yin-Li is the preparer of the Form 1120 for Cloves Corporation. On the return, Cloves claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.

Accepted Answer

The potential § 6694 penalty does not de

Question 9

The IRS can pay an informant's fee of up to _______% of the recovered tax, interest, and penalty amounts. The reward can be as high as_________ % for information provided by a whistleblower.

Accepted Answer

The answer of The IRS can pay an informant's fee...

Question 10

With respect to the Small Cases Division of the Tax Court,

Accepted Answer

A)  The taxpayer but not the IRS) can appeal a contrary judgment. 
B)  The IRS but not the taxpayer) can appeal a contrary judgment. 
C)  Either the IRS or the taxpayer can appeal a contrary judgment. 
D)  Neither the IRS nor the taxpayer can appeal a contrary judgment. 
A)  The taxpayer but not the IRS) can appeal a contrary judgment. 
B)  The IRS but not the taxpayer) can appeal a contrary judgment. 
C)  Either the IRS or the taxpayer can appeal a contrary judgment. 
D)  Neither the IRS nor the taxpayer can appeal a contrary judgment.

Question 11

Concerning the penalty for civil tax fraud:

Accepted Answer

A)  The burden of proof is on the taxpayer to establish that no fraud was committed. 
B)  Fraudulent behavior is more than mere negligence on the part of the taxpayer. 
C)  The penalty is 100% of the underpayment. 
D)  Fraud is defined in Code §§ 6663b) and f). 
A)  The burden of proof is on the taxpayer to establish that no fraud was committed. 
B)  Fraudulent behavior is more than mere negligence on the part of the taxpayer. 
C)  The penalty is 100% of the underpayment. 
D)  Fraud is defined in Code §§ 6663b) and f).

Question 12

Compute the undervaluation penalty for each of the following independent cases involving the executor's reporting of the value of a closely held business in the decedent's gross estate. In each case, assume a marginal Federal estate tax rate of 40%. $\begin{array}{lrr} 
& \text { Reported Value } & \text { Corrected IRS Value } \
\text { a. } & \$ 10,000 & \$ 20,000 \
\text { b. } & 60,000 & 100,000 \
\text { c. } & 80,000 & 150,000 \
\text { d. } & 50,000 & 300,000
\end{array}$

Accepted Answer

a. $0. Additional tax $4,000) is less th

Question 13

CPA Liam discovers that last year's Form 1120 for his client PollCo claimed a $100,000 advertising deduction for a gift to candidates of the Green Party. AICPA tax ethics rules require that an amended return immediately be filed because political expenditures are not deductible.

Accepted Answer

A) True 
 B)False

Question 14

Under Circular 230, tax preparer Winston cannot disclose to a mortgage banker the income level of her client Pickett or other information acquired by preparing the return without Pickett's permission.

Accepted Answer

A) True 
 B)False

Question 15

Kevin uses two sets of books. He reports only one-half of his cash sales on the records that he uses to complete her
Federal income tax return. The statute of limitations for Kevin's return is six years.

Accepted Answer

A) True 
 B)False

Question 16

Mickey, a calendar year taxpayer, was not required to file a Federal income tax return last year because his AGI was very low. For this tax year, his AGI is $120,000 and his tax liability is $10,000. To avoid a penalty for tax underpayments for the current year, Mickey must make aggregate estimated tax payments of at least:

Accepted Answer

A)  $10,000. 
B)  $9,000. 
C)  $1,000 minimum amount). 
D)  $0. 
A)  $10,000. 
B)  $9,000. 
C)  $1,000 minimum amount). 
D)  $0.

Question 17

The usual three-year statute of limitations on additional tax assessments applies in the following situations).

Accepted Answer

A)  No return at all is filed. 
B)  An investment in a marketable security is worthless. 
C)  A taxpayer discovers an inadvertent overstatement of deductions equal to 30% of gross income. 
D)  A taxpayer inadvertently omits an amount of gross income equal to 30% of the gross income stated on the return. 
A)  No return at all is filed. 
B)  An investment in a marketable security is worthless. 
C)  A taxpayer discovers an inadvertent overstatement of deductions equal to 30% of gross income. 
D)  A taxpayer inadvertently omits an amount of gross income equal to 30% of the gross income stated on the return.

Question 18

Yang, a calendar year taxpayer, did not file a tax return for 2010 because she honestly believed that no additional tax was due. In 2018, Yang is audited by the IRS and the agent assesses a deficiency of $17,000 for 2010. Yang need not pay this deficiency, since the three-year statute of limitations expired on April 15, 2014, meaning that the IRS no longer can adjust Yang's tax for the 2010 tax year.

Accepted Answer

A) True 
 B)False

Question 19

A tax professional needs to know how the IRS is structured and how it works to carry out its mission. Evaluate this statement.

Accepted Answer

The tax practitioner needs to study the

Question 20

A letter ruling should be requested when the taxpayer wants to know how the IRS's interpretation of the tax law will be applied to a_________ proposed, completed) transaction.

Accepted Answer

The answer of A letter ruling should be requested when...

The chief executive of the IRS is the _________________________.

The tax__________ workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena.

Which of the following statements does not reflect the rules governing the accuracy-related penalty for negligence?

The IRS is one of the largest Federal agencies, employing almost ______people throughout the year.

According to the IRS, the annual tax gap totals over $______ billion.

This official does not report directly to the IRS Commissioner.

An individual's amended tax return that computes a refund or amount due generally uses Form ____________________.

Yin-Li is the preparer of the Form 1120 for Cloves Corporation. On the return, Cloves claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.

The IRS can pay an informant's fee of up to _% of the recovered tax, interest, and penalty amounts. The reward can be as high as___ % for information provided by a whistleblower.

With respect to the Small Cases Division of the Tax Court,

Concerning the penalty for civil tax fraud:

CPA Liam discovers that last year's Form 1120 for his client PollCo claimed a $100,000 advertising deduction for a gift to candidates of the Green Party. AICPA tax ethics rules require that an amended return immediately be filed because political expenditures are not deductible.

Under Circular 230, tax preparer Winston cannot disclose to a mortgage banker the income level of her client Pickett or other information acquired by preparing the return without Pickett's permission.

Kevin uses two sets of books. He reports only one-half of his cash sales on the records that he uses to complete her Federal income tax return. The statute of limitations for Kevin's return is six years.

The usual three-year statute of limitations on additional tax assessments applies in the following situations).

A tax professional needs to know how the IRS is structured and how it works to carry out its mission. Evaluate this statement.

A letter ruling should be requested when the taxpayer wants to know how the IRS's interpretation of the tax law will be applied to a_________ proposed, completed) transaction.

Understanding and Working With the Federal Tax Law

The Deduction for Qualified Business Income for Pass-Through Entities

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operations, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 17: Tax Practice and Ethics

The chief executive of the IRS is the _________________________.

The tax__________ workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena.

Which of the following statements does not reflect the rules governing the accuracy-related penalty for negligence?

The IRS is one of the largest Federal agencies, employing almost ______people throughout the year.

According to the IRS, the annual tax gap totals over $______ billion.

This official does not report directly to the IRS Commissioner.

An individual's amended tax return that computes a refund or amount due generally uses Form ____________________.

Yin-Li is the preparer of the Form 1120 for Cloves Corporation. On the return, Cloves claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.

The IRS can pay an informant's fee of up to _______% of the recovered tax, interest, and penalty amounts. The reward can be as high as_________ % for information provided by a whistleblower.

With respect to the Small Cases Division of the Tax Court,

Concerning the penalty for civil tax fraud:

CPA Liam discovers that last year's Form 1120 for his client PollCo claimed a $100,000 advertising deduction for a gift to candidates of the Green Party. AICPA tax ethics rules require that an amended return immediately be filed because political expenditures are not deductible.

Under Circular 230, tax preparer Winston cannot disclose to a mortgage banker the income level of her client Pickett or other information acquired by preparing the return without Pickett's permission.

Kevin uses two sets of books. He reports only one-half of his cash sales on the records that he uses to complete her Federal income tax return. The statute of limitations for Kevin's return is six years.

The usual three-year statute of limitations on additional tax assessments applies in the following situations).

A tax professional needs to know how the IRS is structured and how it works to carry out its mission. Evaluate this statement.

A letter ruling should be requested when the taxpayer wants to know how the IRS's interpretation of the tax law will be applied to a_________ proposed, completed) transaction.

Understanding and Working With the Federal Tax Law

The Deduction for Qualified Business Income for Pass-Through Entities

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operations, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

The IRS can pay an informant's fee of up to _% of the recovered tax, interest, and penalty amounts. The reward can be as high as___ % for information provided by a whistleblower.