Question 1

Taxpayers who can't complete their tax return by the filing date can request an automatic extension of time to file the return and pay any balance of tax due.

Accepted Answer

A) True 
 B)False

Question 2

The IRS can't impose a negligence penalty on an individual who relied on the advice of a CPA in preparing his tax return.

Accepted Answer

A) True 
 B)False

Question 3

Mrs Claire underpaid her current-year federal income tax by $11,017. If the entire underpayment was attributable to Mrs Claire's failure to make a good faith effort to comply with the tax law, the IRS may impose a $2,754 negligence penalty.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about taxpayer negligence is false?

Accepted Answer

A)  A taxpayer who makes a good faith effort to comply with the tax law is not negligent. 
B)  A taxpayer who keeps complete and careful tax records is less likely to incur a negligence penalty than a taxpayer with no records. 
C)  A taxpayer who cooperates with the revenue agent is less likely to incur a negligence penalty than an uncooperative taxpayer. 
D)  A taxpayer who relies on the advice of a tax professional has a guaranteed defense against the negligence penalty. 
A)  A taxpayer who makes a good faith effort to comply with the tax law is not negligent. 
B)  A taxpayer who keeps complete and careful tax records is less likely to incur a negligence penalty than a taxpayer with no records. 
C)  A taxpayer who cooperates with the revenue agent is less likely to incur a negligence penalty than an uncooperative taxpayer. 
D)  A taxpayer who relies on the advice of a tax professional has a guaranteed defense against the negligence penalty.

Question 5

Mrs Lui decided to contest a negligence penalty in federal court. Which of the following statements is true?

Accepted Answer

A)  Mrs Lui must present a preponderance of evidence establishing that she was not negligent. 
B)  The government must present a preponderance of evidence establishing that Mrs Lui was negligent. 
C)  The government must present clear and convincing evidence that Mrs Lui was negligent. 
D)  The government must establish Mrs Lui's negligence beyond any reasonable doubt. 
A)  Mrs Lui must present a preponderance of evidence establishing that she was not negligent. 
B)  The government must present a preponderance of evidence establishing that Mrs Lui was negligent. 
C)  The government must present clear and convincing evidence that Mrs Lui was negligent. 
D)  The government must establish Mrs Lui's negligence beyond any reasonable doubt.

Question 6

Mr and Mrs Lester failed to report a $40,540 capital gain on their 2017 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2018. What is the last date on which the IRS can assess additional tax for 2017?

Accepted Answer

The unreported income does not exceed 25

Taxpayers who can't complete their tax return by the filing date can request an automatic extension of time to file the return and pay any balance of tax due.

The IRS can't impose a negligence penalty on an individual who relied on the advice of a CPA in preparing his tax return.

Mrs Claire underpaid her current-year federal income tax by $11,017. If the entire underpayment was attributable to Mrs Claire's failure to make a good faith effort to comply with the tax law, the IRS may impose a $2,754 negligence penalty.

Which of the following statements about taxpayer negligence is false?

Mrs Lui decided to contest a negligence penalty in federal court. Which of the following statements is true?

Mr and Mrs Lester failed to report a $40,540 capital gain on their 2017 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2018. What is the last date on which the IRS can assess additional tax for 2017?

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes as Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income from Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

Filters

Exam 18: The Tax Compliance Process

Taxpayers who can't complete their tax return by the filing date can request an automatic extension of time to file the return and pay any balance of tax due.

The IRS can't impose a negligence penalty on an individual who relied on the advice of a CPA in preparing his tax return.

Mrs Claire underpaid her current-year federal income tax by $11,017. If the entire underpayment was attributable to Mrs Claire's failure to make a good faith effort to comply with the tax law, the IRS may impose a $2,754 negligence penalty.

Which of the following statements about taxpayer negligence is false?

Mrs Lui decided to contest a negligence penalty in federal court. Which of the following statements is true?

Mr and Mrs Lester failed to report a $40,540 capital gain on their 2017 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2018. What is the last date on which the IRS can assess additional tax for 2017?

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes as Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income from Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

Filters