Question 1

The government can appeal a decision of the Tax Court Small Cases Division, but the taxpayer cannot.

Accepted Answer

A) True 
 B)False

Question 2

Young-Eagle files her 2018 Form 1040 on March 1, 2019. The Federal tax statute of limitations for this return expires on:

Accepted Answer

A)  March 1, 2022. 
B)  April 15, 2022. 
C)  April 15, 2025. 
D)  April 15, 2026. 
A)  March 1, 2022. 
B)  April 15, 2022. 
C)  April 15, 2025. 
D)  April 15, 2026.

Question 3

A CPA can take a tax return position for a client that is contrary to current IRS interpretations of the law.

Accepted Answer

A) True 
 B)False

Question 4

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

Accepted Answer

A) True 
 B)False

Question 5

About ______% of all Forms 1040 are audited each year. The rate is about
____________________% for large corporations.

Accepted Answer

The answer of About ______% of all Forms 1040 are...

Question 6

An) __________must obtain a Preparer Tax Identification Number PTIN).

Accepted Answer

The answer of An) __________must obtain a Preparer Tax Identification...

Question 7

Jaime's negligence penalty will be waived under the reasonable cause exception. He told the court, "My taxes were wrong because I couldn't understand the tax law."

Accepted Answer

A) True 
 B)False

Question 8

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Failure to pay a tax.

Accepted Answer

A) Taxpayer penalty 
B) Tax preparer penalty 
C) Appraiser's penalty 
A) Taxpayer penalty 
B) Tax preparer penalty 
C) Appraiser's penalty

Question 9

A negligence penalty is assessed when the taxpayer is found not to have made a reasonable attempt to comply with the tax law.

Accepted Answer

A) True 
 B)False

Question 10

A penalty can be assessed on an appraiser who knew that her or his improper appraisal would be used as part of a tax computation in the amount of the lesser of_______ % of the tax understatement or
____________________ % of the appraisal fee collected.

Accepted Answer

The answer of A penalty can be assessed on an...

Question 11

The tax professional can reduce the chances that staff personnel will incur IRS preparer penalties by adopting a
"tone at the top" that stresses integrity, diligence, and other elements of an ethical tax practice.

Accepted Answer

A) True 
 B)False

Question 12

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Substantial understatement of a tax.

Accepted Answer

A) Taxpayer penalty 
B) Tax preparer penalty 
C) Appraiser's penalty 
A) Taxpayer penalty 
B) Tax preparer penalty 
C) Appraiser's penalty

Question 13

In taking a dispute to the Appeals Division, a written protest is required of the taxpayer when the proposed deficiency exceeds $____________________.

Accepted Answer

The answer of In taking a dispute to the Appeals...

Question 14

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Negligence in filing a return.

Accepted Answer

A) Ignorance of the tax law 
B) Reasonable basis 
C) Reasonable cause 
D) Complexity of the tax law 
E) Substantial authority
F)Disclosure on return 
A) Ignorance of the tax law 
B) Reasonable basis 
C) Reasonable cause 
D) Complexity of the tax law 
E) Substantial authority
F)Disclosure on return

Question 15

A negligence penalty can be waived if the taxpayer discloses a tax return position that is contrary to a judicial precedent and there is a__________ for the taxpayer's position.

Accepted Answer

The answer of A negligence penalty can be waived if...

Question 16

Taxpayer's must pay a significant fee to have a letter ruling issued by the IRS.

Accepted Answer

A) True 
 B)False

Question 17

The taxpayer can avoid a valuation penalty for overstating the value of the charitable contribution of an artwork by showing that the deduction claimed was based on a qualified____________ .

Accepted Answer

The answer of The taxpayer can avoid a valuation penalty...

Question 18

For purposes of tax penalties, a VITA volunteer is not classified as a tax return ____________________.

Accepted Answer

The answer of For purposes of tax penalties, a VITA...

Question 19

Circular 230 compliance implies that a tax preparer provide training for the tax staff as to the latest changes in the tax law.

Accepted Answer

A) True 
 B)False

Question 20

When a tax dispute is resolved, interest is paid by or to the government. How are IRS interest amounts determined?
To which tax amounts do they apply?

Accepted Answer

These observations can be made about the

The government can appeal a decision of the Tax Court Small Cases Division, but the taxpayer cannot.

Young-Eagle files her 2018 Form 1040 on March 1, 2019. The Federal tax statute of limitations for this return expires on:

A CPA can take a tax return position for a client that is contrary to current IRS interpretations of the law.

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

About % of all Forms 1040 are audited each year. The rate is about ______________% for large corporations.

An) __________must obtain a Preparer Tax Identification Number PTIN).

Jaime's negligence penalty will be waived under the reasonable cause exception. He told the court, "My taxes were wrong because I couldn't understand the tax law."

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to pay a tax.

A negligence penalty is assessed when the taxpayer is found not to have made a reasonable attempt to comply with the tax law.

A penalty can be assessed on an appraiser who knew that her or his improper appraisal would be used as part of a tax computation in the amount of the lesser of_ % of the tax understatement or ______________ % of the appraisal fee collected.

The tax professional can reduce the chances that staff personnel will incur IRS preparer penalties by adopting a "tone at the top" that stresses integrity, diligence, and other elements of an ethical tax practice.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Substantial understatement of a tax.

In taking a dispute to the Appeals Division, a written protest is required of the taxpayer when the proposed deficiency exceeds $____________________.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Negligence in filing a return.

A negligence penalty can be waived if the taxpayer discloses a tax return position that is contrary to a judicial precedent and there is a__________ for the taxpayer's position.

Taxpayer's must pay a significant fee to have a letter ruling issued by the IRS.

The taxpayer can avoid a valuation penalty for overstating the value of the charitable contribution of an artwork by showing that the deduction claimed was based on a qualified____________ .

For purposes of tax penalties, a VITA volunteer is not classified as a tax return ____________________.

Circular 230 compliance implies that a tax preparer provide training for the tax staff as to the latest changes in the tax law.

When a tax dispute is resolved, interest is paid by or to the government. How are IRS interest amounts determined? To which tax amounts do they apply?

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 government can appeal a decision of the Tax Court Small Cases Division, but the taxpayer cannot.

Young-Eagle files her 2018 Form 1040 on March 1, 2019. The Federal tax statute of limitations for this return expires on:

A CPA can take a tax return position for a client that is contrary to current IRS interpretations of the law.

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

About ______% of all Forms 1040 are audited each year. The rate is about ____________________% for large corporations.

An) __________must obtain a Preparer Tax Identification Number PTIN).

Jaime's negligence penalty will be waived under the reasonable cause exception. He told the court, "My taxes were wrong because I couldn't understand the tax law."

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to pay a tax.

A negligence penalty is assessed when the taxpayer is found not to have made a reasonable attempt to comply with the tax law.

A penalty can be assessed on an appraiser who knew that her or his improper appraisal would be used as part of a tax computation in the amount of the lesser of_______ % of the tax understatement or ____________________ % of the appraisal fee collected.

The tax professional can reduce the chances that staff personnel will incur IRS preparer penalties by adopting a "tone at the top" that stresses integrity, diligence, and other elements of an ethical tax practice.

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Substantial understatement of a tax.

In taking a dispute to the Appeals Division, a written protest is required of the taxpayer when the proposed deficiency exceeds $____________________.

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used. -Negligence in filing a return.

A negligence penalty can be waived if the taxpayer discloses a tax return position that is contrary to a judicial precedent and there is a__________ for the taxpayer's position.

Taxpayer's must pay a significant fee to have a letter ruling issued by the IRS.

The taxpayer can avoid a valuation penalty for overstating the value of the charitable contribution of an artwork by showing that the deduction claimed was based on a qualified____________ .

For purposes of tax penalties, a VITA volunteer is not classified as a tax return ____________________.

Circular 230 compliance implies that a tax preparer provide training for the tax staff as to the latest changes in the tax law.

When a tax dispute is resolved, interest is paid by or to the government. How are IRS interest amounts determined? To which tax amounts do they apply?

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

About % of all Forms 1040 are audited each year. The rate is about ______________% for large corporations.

A penalty can be assessed on an appraiser who knew that her or his improper appraisal would be used as part of a tax computation in the amount of the lesser of_ % of the tax understatement or ______________ % of the appraisal fee collected.