Question 1

Toavoid the penalty, the ___________ must meet the burden of proof that the failure tofile was the result of reasonable cause.

Accepted Answer

A) IRS 
B) TRP 
C) taxpayer 
D) none of these are correct 
A) IRS 
B) TRP 
C) taxpayer 
D) none of these are correct C

Question 2

The penalty for failure tomake payment of quarterly estimated income taxes is computed without any daily compounding and is not deductible.

Accepted Answer

A) True 
 B)False  True

Question 3

A tax return preparer (TRP)is:

Accepted Answer

A) a CPA as required by the IRS 
B) not subject toany kind of penalty as he/she prepares returns on behalf of taxpayers 
C) any person whoprepares tax returns gratuitously 
D) any person whoprepares tax returns for compensation 
A) a CPA as required by the IRS 
B) not subject toany kind of penalty as he/she prepares returns on behalf of taxpayers 
C) any person whoprepares tax returns gratuitously 
D) any person whoprepares tax returns for compensation D

Question 4

What are the requirements tobe satisfied for the issue of an injunction by the IRS against a TRP whois guilty of misconduct toprohibit him or her from engaging in such misconduct or from practicing as a return preparer?

Accepted Answer

The IRS may seek an injunction against a

Question 5

Could a taxpayer make such a small amount of income that a tax return not be filed and still have an unlimited statute of limitations on assessment?

Accepted Answer

Yes, a taxpayer whoinnocently

Question 6

The standard for conviction in a criminal case is establishment of:

Accepted Answer

A) guilt with some reasonable doubt 
B) guilt beyond reasonable doubt 
C) any guilt even though highly doubtful 
D) criminal intent even though not implemented 
A) guilt with some reasonable doubt 
B) guilt beyond reasonable doubt 
C) any guilt even though highly doubtful 
D) criminal intent even though not implemented

Question 7

Unless a gross valuation misstatement is made, the accuracy-related penalty amounts to20 percent of the portion of the tax underpayment.

Accepted Answer

A) True 
 B)False

Question 8

What is the procedure for claiming a refund or credit for overpayment of tax?

Accepted Answer

A taxpayer must file a timely and valid

Question 9

Joanne filed her unextended 2020 tax return on September 14, 2021, paying the $5,000 amount due at that time. Joanne has noreasonable cause for failing tofile the return by April 15 or for failing topay the tax that was due on April 15, 2021. Compute the failure-to-pay penalty.

Accepted Answer

A) $25 
B) $125 
C) $150 
D) None of the above. 
A) $25 
B) $125 
C) $150 
D) None of the above.

Question 10

Failure tofile as a result of a taxpayer not having the sufficient funds topay the tax liability is an example of reasonable cause.

Accepted Answer

A) True 
 B)False

Question 11

Penalties that are based on a percentage of the delinquent tax are referred toas:

Accepted Answer

A) assessable penalties 
B) ad valorem penalties 
C) criminal penalties 
D) nominal penalties 
A) assessable penalties 
B) ad valorem penalties 
C) criminal penalties 
D) nominal penalties

Question 12

If a taxpayer is convicted of criminal fraud, he or she can contest a civil fraud determination.

Accepted Answer

A) True 
 B)False

Question 13

An individual should make a claim for refund or credit in the Form 1040X.

Accepted Answer

A) True 
 B)False

Question 14

In which of the following cases does a taxpayer hold the right torefuse toanswer inquiries that are made by the IRS in a criminal setting?

Accepted Answer

A) The taxpayer would suffer a monetary loss by answering a criminal inquiry. 
B) The nature of the crime is not severe. 
C) The taxpayer is confident that a conviction will be obtained. 
D) The taxpayer would suffer a loss of some constitutional right by answering a criminal inquiry. 
A) The taxpayer would suffer a monetary loss by answering a criminal inquiry. 
B) The nature of the crime is not severe. 
C) The taxpayer is confident that a conviction will be obtained. 
D) The taxpayer would suffer a loss of some constitutional right by answering a criminal inquiry.

Question 15

William, a taxpayer, timely mailed his tax return. However, it was returned for insufficient postage. IRS imposed a penalty. Can William claim waiver of penalty?

Accepted Answer

A) Yes, William can claim waiver of penalty since it is his first tax return. 
B) Yes, William can claim waiver since the failure tofile tax return is due toa reasonable cause. 
C) No, William cannot claim waiver since it is a case of willful neglect. 
D) No, William cannot claim waiver of penalty as he is a delinquent taxpayer. 
A) Yes, William can claim waiver of penalty since it is his first tax return. 
B) Yes, William can claim waiver since the failure tofile tax return is due toa reasonable cause. 
C) No, William cannot claim waiver since it is a case of willful neglect. 
D) No, William cannot claim waiver of penalty as he is a delinquent taxpayer.

Question 16

A fraudulent failure-to-file tax return is subject toa 25 percent monthly penalty.

Accepted Answer

A) True 
 B)False

Question 17

For purposes of calculating the interest rate on overpayments and underpayments, the federal short-term interest rate is rounded tothe nearest:

Accepted Answer

A) one-tenth percent 
B) one percent 
C) tenth percent 
D) none of these are correct 
A) one-tenth percent 
B) one percent 
C) tenth percent 
D) none of these are correct

Question 18

Bennie files his 2021 income tax return on April 15, 2022, showing a tax liability of $10,000 and a balance due of $1,000. Bennie does not pay the $1,000 until June 30, 2022. The failure-to-pay penalty is $15.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would lead toimposition of civil penalties?

Accepted Answer

A) violation of civil protocols 
B) violation of tax laws as a result of negligence 
C) violation of tax statutes due toreasonable cause 
D) violation of social rules and norms 
A) violation of civil protocols 
B) violation of tax laws as a result of negligence 
C) violation of tax statutes due toreasonable cause 
D) violation of social rules and norms

Question 20

"In case of both civil and criminal frauds, the burden of proof is on the IRS." Explain.

Accepted Answer

The burden of proof in criminal and civi

Toavoid the penalty, the ___________ must meet the burden of proof that the failure tofile was the result of reasonable cause.

The penalty for failure tomake payment of quarterly estimated income taxes is computed without any daily compounding and is not deductible.

A tax return preparer (TRP)is:

What are the requirements tobe satisfied for the issue of an injunction by the IRS against a TRP whois guilty of misconduct toprohibit him or her from engaging in such misconduct or from practicing as a return preparer?

Could a taxpayer make such a small amount of income that a tax return not be filed and still have an unlimited statute of limitations on assessment?

The standard for conviction in a criminal case is establishment of:

Unless a gross valuation misstatement is made, the accuracy-related penalty amounts to20 percent of the portion of the tax underpayment.

What is the procedure for claiming a refund or credit for overpayment of tax?

Joanne filed her unextended 2020 tax return on September 14, 2021, paying the $5,000 amount due at that time. Joanne has noreasonable cause for failing tofile the return by April 15 or for failing topay the tax that was due on April 15, 2021. Compute the failure-to-pay penalty.

Failure tofile as a result of a taxpayer not having the sufficient funds topay the tax liability is an example of reasonable cause.

Penalties that are based on a percentage of the delinquent tax are referred toas:

If a taxpayer is convicted of criminal fraud, he or she can contest a civil fraud determination.

An individual should make a claim for refund or credit in the Form 1040X.

In which of the following cases does a taxpayer hold the right torefuse toanswer inquiries that are made by the IRS in a criminal setting?

William, a taxpayer, timely mailed his tax return. However, it was returned for insufficient postage. IRS imposed a penalty. Can William claim waiver of penalty?

A fraudulent failure-to-file tax return is subject toa 25 percent monthly penalty.

For purposes of calculating the interest rate on overpayments and underpayments, the federal short-term interest rate is rounded tothe nearest:

Bennie files his 2021 income tax return on April 15, 2022, showing a tax liability of $10,000 and a balance due of $1,000. Bennie does not pay the $1,000 until June 30, 2022. The failure-to-pay penalty is $15.

Which of the following would lead toimposition of civil penalties?

"In case of both civil and criminal frauds, the burden of proof is on the IRS." Explain.

Introduction Totax Practice and Ethics

Tax Research Methodology

Constitutional and Legislative Sources

Administrative Regulations and Rulings

Judicial Interpretations

Thomson Reuters Checkpoint

CCH Intelliconnect

Other Tax Services and Tax Periodicals

Multijurisdictional Taxes

Communicating Research Results

Tax Planning

Working With the IRS

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Exam 13: Tax Practice and Administration

Toavoid the penalty, the ___________ must meet the burden of proof that the failure tofile was the result of reasonable cause.

The penalty for failure tomake payment of quarterly estimated income taxes is computed without any daily compounding and is not deductible.

A tax return preparer (TRP)is:

What are the requirements tobe satisfied for the issue of an injunction by the IRS against a TRP whois guilty of misconduct toprohibit him or her from engaging in such misconduct or from practicing as a return preparer?

Could a taxpayer make such a small amount of income that a tax return not be filed and still have an unlimited statute of limitations on assessment?

The standard for conviction in a criminal case is establishment of:

Unless a gross valuation misstatement is made, the accuracy-related penalty amounts to20 percent of the portion of the tax underpayment.

What is the procedure for claiming a refund or credit for overpayment of tax?

Joanne filed her unextended 2020 tax return on September 14, 2021, paying the $5,000 amount due at that time. Joanne has noreasonable cause for failing tofile the return by April 15 or for failing topay the tax that was due on April 15, 2021. Compute the failure-to-pay penalty.

Failure tofile as a result of a taxpayer not having the sufficient funds topay the tax liability is an example of reasonable cause.

Penalties that are based on a percentage of the delinquent tax are referred toas:

If a taxpayer is convicted of criminal fraud, he or she can contest a civil fraud determination.

An individual should make a claim for refund or credit in the Form 1040X.

In which of the following cases does a taxpayer hold the right torefuse toanswer inquiries that are made by the IRS in a criminal setting?

William, a taxpayer, timely mailed his tax return. However, it was returned for insufficient postage. IRS imposed a penalty. Can William claim waiver of penalty?

A fraudulent failure-to-file tax return is subject toa 25 percent monthly penalty.

For purposes of calculating the interest rate on overpayments and underpayments, the federal short-term interest rate is rounded tothe nearest:

Bennie files his 2021 income tax return on April 15, 2022, showing a tax liability of $10,000 and a balance due of $1,000. Bennie does not pay the $1,000 until June 30, 2022. The failure-to-pay penalty is $15.

Which of the following would lead toimposition of civil penalties?

"In case of both civil and criminal frauds, the burden of proof is on the IRS." Explain.

Introduction Totax Practice and Ethics

Tax Research Methodology

Constitutional and Legislative Sources

Administrative Regulations and Rulings

Judicial Interpretations

Thomson Reuters Checkpoint

CCH Intelliconnect

Other Tax Services and Tax Periodicals

Multijurisdictional Taxes

Communicating Research Results

Tax Planning

Working With the IRS

Filters