Question 1

A taxpayer can avoid the failure-to-file penalty if an extension of the return's due date is granted by the IRS.

Accepted Answer

A) True 
 B)False

Question 2

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-file penalty?

Accepted Answer

A) $1,800 
B) $1,900 
C) $2,000 
D) $1,000 
A) $1,800 
B) $1,900 
C) $2,000 
D) $1,000

Question 3

Tax return preparers are subject tocriminal prosecution for willful misconduct.

Accepted Answer

A) True 
 B)False

Question 4

If a taxpayer understates gross income by 25 percent, the IRS has a 6-year statute of limitations on assessment.

Accepted Answer

A) True 
 B)False

Question 5

The penalty for a willful failure topay tothe government a tax withheld from an employee's paycheck is one hundred percent of the unpaid tax.

Accepted Answer

A) True 
 B)False

Question 6

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-file penalty.

Accepted Answer

A) $250 
B) $1,250 
C) $1,125 
D) $1,000 
A) $250 
B) $1,250 
C) $1,125 
D) $1,000

Question 7

For § 6502, requests for equitable relief may be filed within:

Accepted Answer

A) 3 years 
B) 10 years 
C) 7 years 
D) none of these are correct 
A) 3 years 
B) 10 years 
C) 7 years 
D) none of these are correct

Question 8

The civil fraud penalty is:

Accepted Answer

A) 5% 
B) 20% 
C) 25% 
D) 75% 
A) 5% 
B) 20% 
C) 25% 
D) 75%

Question 9

When the accuracy-related penalty applies, interest on the penalty accrues from the:

Accepted Answer

A) date on which the assessment is made 
B) date on which the penalty was imposed or December 31, whichever is earlier 
C) date on which the penalty was imposed 
D) due date of the return 
A) date on which the assessment is made 
B) date on which the penalty was imposed or December 31, whichever is earlier 
C) date on which the penalty was imposed 
D) due date of the return

Question 10

Elton filed his 2019 income tax return on July 31, 2020, showing total tax of $5,000 and a refund of $100. All tax had been paid by the due date of April 15, 2020. The failure tofile penalty is $0.

Accepted Answer

A) True 
 B)False

Question 11

Julian filed a valid extension for his 2020 tax return, giving him until October 15, 2021, tofile his return. He filed his return on November 30 and paid $1,000 of tax due.  For what period of time will Julian be subject tothe failure-to-file and failure-to-pay penalties?

Accepted Answer

A) 2 months for both 
B) 2 months for failure tofile and 8 months for failure topay 
C) 8 months for both 
D) None of the above. 
A) 2 months for both 
B) 2 months for failure tofile and 8 months for failure topay 
C) 8 months for both 
D) None of the above.

A taxpayer can avoid the failure-to-file penalty if an extension of the return's due date is granted by the IRS.

Tax return preparers are subject tocriminal prosecution for willful misconduct.

If a taxpayer understates gross income by 25 percent, the IRS has a 6-year statute of limitations on assessment.

The penalty for a willful failure topay tothe government a tax withheld from an employee's paycheck is one hundred percent of the unpaid 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-file penalty.

For § 6502, requests for equitable relief may be filed within:

The civil fraud penalty is:

When the accuracy-related penalty applies, interest on the penalty accrues from the:

Elton filed his 2019 income tax return on July 31, 2020, showing total tax of $5,000 and a refund of $100. All tax had been paid by the due date of April 15, 2020. The failure tofile penalty is $0.

Julian filed a valid extension for his 2020 tax return, giving him until October 15, 2021, tofile his return. He filed his return on November 30 and paid $1,000 of tax due. For what period of time will Julian be subject tothe failure-to-file and failure-to-pay penalties?

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Exam 13: Tax Practice and Administration

A taxpayer can avoid the failure-to-file penalty if an extension of the return's due date is granted by the IRS.

Tax return preparers are subject tocriminal prosecution for willful misconduct.

If a taxpayer understates gross income by 25 percent, the IRS has a 6-year statute of limitations on assessment.

The penalty for a willful failure topay tothe government a tax withheld from an employee's paycheck is one hundred percent of the unpaid 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-file penalty.

For § 6502, requests for equitable relief may be filed within:

The civil fraud penalty is:

When the accuracy-related penalty applies, interest on the penalty accrues from the:

Elton filed his 2019 income tax return on July 31, 2020, showing total tax of $5,000 and a refund of $100. All tax had been paid by the due date of April 15, 2020. The failure tofile penalty is $0.

Julian filed a valid extension for his 2020 tax return, giving him until October 15, 2021, tofile his return. He filed his return on November 30 and paid $1,000 of tax due. For what period of time will Julian be subject tothe failure-to-file and failure-to-pay penalties?

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