Exam 13: Tax Practice and Administration

Jennie received a 6-month extension (toOctober 15, 2021)tofile her 2020 tax return. Jennie actually filed the return on November 20, 2021, paying the $20,000 amount due at that time. She has noreasonable cause for failing tofile the return by October 15 or for failing topay the tax that was due on April 15, 2021. How much is the failure-to-pay penalty?

One example of reasonable cause that the Internal Revenue Manual describes would include a timely mailed return sent tothe wrong IRS address.

The Employee Withholding Allowance Certificate is required tobe given by the employee tothe employer.

Criminal and civil penalties are mutually exclusive.

Kenny underpaid his taxes by $15,000. Of this amount, $7,500 was the result of negligence on his part. What is the amount of the negligence penalty?

Assessable penalties typically are expressed as a flat dollar amount and are usually imposed on third parties, such as tax return preparers.

A failure-to-pay penalty is imposed when the taxpayer fails topay either a tax shown on his or her return or an assessed deficiency within 10 days of an IRS notice or demand.

Generally, an overpayment can be refunded or credited tothe person whowas subject tothe original tax.

The burden of proof in a fraud case is on the:

The number of days the IRS is allowed in which it may refund an overpayment without incurring interest is:

Samuels, a calendar-year taxpayer, filed his 2017 federal income tax return on October 1, 2020. His return showed an overpayment of $1,200, for which Samuels requested a full refund. The IRS refunds the amount without any interest. Which of the following could be the date of refund by the IRS?

Underpayment is defined in § 6664 as the correct amount of tax, less the sum of the amount of tax reported by the taxpayer on the return, plus any amount previously assessed or collected, less the amount of rebates made.

Assessable penalties are subject toreview by the Tax Court.

Interest imposed by the IRS is compounded:

List some of the possible defenses that a taxpayer may use against a charge of criminal tax offense.

Cite twoinstances that would lead toimposition of criminal penalties on tax return preparers.

How dothe courts define reasonable cause?   List the examples of reasonable cause.

Give an example of what it means for failure tomake deposits of taxes.   Describe the penalties involved.

An individual whois convicted of willfully aiding or assisting in the preparation of a false return is subject towhich of the following penalties?

A tax return preparer may disclose information obtained from the taxpayer without being subject tocivil and criminal penalty if such disclosure is: