Exam 14: Tax Practice and Administration: Sanctions, Agreements, and Disclosures

Failure to file as a result of a taxpayer not having the sufficient funds to pay the tax liability is an example of reasonable cause.

The accuracy-related penalty amounts to 20 percent of the portion of the tax underpayment.

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

The Code provides for payment of interest on underpayments and overpayments of tax at an adjustable rate compounded annually.

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

Tax return preparers are subject to criminal prosecution for willful misconduct.

To avoid the penalty, the ___________ must meet the burden of proof that the failure to file was the result of reasonable cause.

An individual who is convicted of willfully aiding or assisting in the preparation of a false return is subject to which of the following penalties?

Cite two instances that would lead to imposition of criminal penalties on tax return preparers.

A "large corporation" as defined in the Code is one which had a taxable income of:

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

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

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

Samuels, a calendar-year taxpayer, filed his 2014 federal income tax return on October 1, 2017. 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?

The Employee Withholding Allowance Certificate is required to be given by the employee to the employer.

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

Criminal and civil penalties are mutually exclusive.

Willful attempt to evade or defeat a tax (i.e., tax evasion) is a felony offense that is punishable by a fine not to exceed $300,000 ($500,000 for corporations), reimbursement of the government's cost of prosecution, and/or imprisonment for a period not to exceed 5 years.

After the assessment has been made, the taxes assessed must be collected within:

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