Question 1

Generally,code sections are arranged (grouped together):

Accepted Answer

A) chronologically. 
B) by topic. 
C) randomly. 
D) by length. 
E) None of the choices are correct. 
A) chronologically. 
B) by topic. 
C) randomly. 
D) by length. 
E) None of the choices are correct.

Question 2

Which of the following courts is the only court that provides for a jury trial?

Accepted Answer

A) Tax Court. 
B) U)S.Court of Federal Claims. 
C) U)S.District Court. 
D) U)S.Circuit Court of Appeals. 
E) None of the choices are correct. 
A) Tax Court. 
B) U)S.Court of Federal Claims. 
C) U)S.District Court. 
D) U)S.Circuit Court of Appeals. 
E) None of the choices are correct.

Question 3

Lakeisha,a 1ˢᵗ year staff accountant,was researching a tax issue and found what appears to be the answer to her question in her introductory tax textbook that she bought three years ago.She is thrilled because she thought it would take much longer to find her answer.What type of authority is the textbook? What are other examples of this type of authorities? Can Lakeisha base her research conclusion on the textbook or similar authorities? Any suggestions for Lakeisha?

Accepted Answer

There are two broad categories of tax au

Question 4

If April 15ᵗʰ falls on a Saturday,the due date for individual tax returns will be on Monday,April 17ᵗʰ.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not considered a secondary authority?

Accepted Answer

A) Text book. 
B) Private Letter Ruling. 
C) Tax article. 
D) Tax service. 
E) None of the choices are correct. 
A) Text book. 
B) Private Letter Ruling. 
C) Tax article. 
D) Tax service. 
E) None of the choices are correct.

Question 6

Josephine is considering taking a 6-month rotation in Paris for her job.Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Accepted Answer

A) Determination letter. 
B) Private letter ruling. 
C) Tax treaty. 
D) Regulation. 
E) Revenue procedure. 
A) Determination letter. 
B) Private letter ruling. 
C) Tax treaty. 
D) Regulation. 
E) Revenue procedure.

Question 7

A tax practitioner can avoid IRS penalty relating to a tax return position:

Accepted Answer

A) if the position is frivolous and disclosed on the tax return. 
B) if the position has a realistic possibility of being sustained by the IRS or courts. 
C) if there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of the choices are correct. 
A) if the position is frivolous and disclosed on the tax return. 
B) if the position has a realistic possibility of being sustained by the IRS or courts. 
C) if there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of the choices are correct.

Question 8

If a taxpayer is due a refund,she does not have to file a tax return.

Accepted Answer

A) True 
 B)False

Question 9

Under the tax law,taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g.,due to fraud).

Accepted Answer

A) True 
 B)False

Question 10

An acquiescence indicates that the IRS lost a court case and that it has decided to follow the court's ruling in the future.

Accepted Answer

A) True 
 B)False

Question 11

Dan received a letter from the IRS that gave him the choice of (1)requesting a conference with an Appeals Officer or (2)agreeing to a proposed tax adjustment.Dan received the:

Accepted Answer

A) 30-day letter. 
B) 90-day letter. 
C) Appeals letter. 
D) Tax adjustment letter. 
E) None of the choices are correct. 
A) 30-day letter. 
B) 90-day letter. 
C) Appeals letter. 
D) Tax adjustment letter. 
E) None of the choices are correct.

Question 12

Bill filed his 2018 tax return on March 15ᵗʰ,2019.The statute of limitations for IRS assessment on Bill's 2018 tax return should end:

Accepted Answer

A) March 15ᵗʰ,2021. 
B) April 15ᵗʰ,2021. 
C) March 15ᵗʰ,2022. 
D) April 15ᵗʰ,2022. 
E) None of the choices are correct. 
A) March 15ᵗʰ,2021. 
B) April 15ᵗʰ,2021. 
C) March 15ᵗʰ,2022. 
D) April 15ᵗʰ,2022. 
E) None of the choices are correct.

Question 13

An extension to file a tax return does not extend the due date for tax payments.

Accepted Answer

A) True 
 B)False

Question 14

Mel recently received a 30-day letter from the IRS.Although his tax return being audited has several potential large issues (potential tax consequences of $70,000 − $80,000),the IRS agent auditing his return only identified one item that will require a modest adjustment of $10,000.Mel feels strongly that the $10,000 adjustment would not hold up in court and was surprised that the IRS agent did not identify some of the other potential larger issues.What are Mel's choices with respect to the 30-day letter and what factors should influence his decisions?

Accepted Answer

The "30-day letter" instructs the taxpay

Question 15

Which of the following is not considered a primary authority?

Accepted Answer

A) Tax Court case. 
B) Treasury Regulation. 
C) Revenue Ruling. 
D) Tax service. 
E) None of the choices are correct. 
A) Tax Court case. 
B) Treasury Regulation. 
C) Revenue Ruling. 
D) Tax service. 
E) None of the choices are correct.

Question 16

The Internal Revenue Code of 1986 is the name of the current income tax code of the United States of America.

Accepted Answer

A) True 
 B)False

Question 17

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following audits is the most common and typically less comprehensive?

Accepted Answer

A) Correspondence. 
B) Random. 
C) Office. 
D) Field. 
E) None of the choices are correct. 
A) Correspondence. 
B) Random. 
C) Office. 
D) Field. 
E) None of the choices are correct.

Question 19

For the following taxpayers indicate whether the taxpayer should file a tax return and why.
a.Robert earned $50,000 this year as a staff accountant.His estimated tax liability is $4,500,and he expects to receive a $500 tax refund.
b.Amy earned $4,000 this year working part-time.She will have no federal tax liability and has not made any federal tax payments.
c.Ty earned $2,500 this summer and had $200 of federal taxes withheld from his paycheck.He will have no federal tax liability this year.
d.Startup Corporation had a $50,000 loss this year.
e.The Walker Family Trust earned $500 of gross income this year.

Accepted Answer

(a)Because his gross income exceeds the

Question 20

Circular 230 was issued by:

Accepted Answer

A) AICPA. 
B) State Boards of Accountancy. 
C) American Bar Association. 
D) IRS. 
E) None of the choices are correct. 
A) AICPA. 
B) State Boards of Accountancy. 
C) American Bar Association. 
D) IRS. 
E) None of the choices are correct.

Generally,code sections are arranged (grouped together):

Which of the following courts is the only court that provides for a jury trial?

If April 15ᵗʰ falls on a Saturday,the due date for individual tax returns will be on Monday,April 17ᵗʰ.

Which of the following is not considered a secondary authority?

Josephine is considering taking a 6-month rotation in Paris for her job.Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

A tax practitioner can avoid IRS penalty relating to a tax return position:

If a taxpayer is due a refund,she does not have to file a tax return.

Under the tax law,taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g.,due to fraud).

An acquiescence indicates that the IRS lost a court case and that it has decided to follow the court's ruling in the future.

Dan received a letter from the IRS that gave him the choice of (1)requesting a conference with an Appeals Officer or (2)agreeing to a proposed tax adjustment.Dan received the:

Bill filed his 2018 tax return on March 15ᵗʰ,2019.The statute of limitations for IRS assessment on Bill's 2018 tax return should end:

An extension to file a tax return does not extend the due date for tax payments.

Which of the following is not considered a primary authority?

The Internal Revenue Code of 1986 is the name of the current income tax code of the United States of America.

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Which of the following audits is the most common and typically less comprehensive?

Circular 230 was issued by:

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview dependents and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Individual From Agi Deductions

Filters

Exam 2: Tax Compliance, the Irs, and Tax Authorities

Generally,code sections are arranged (grouped together):

Which of the following courts is the only court that provides for a jury trial?

If April 15ᵗʰ falls on a Saturday,the due date for individual tax returns will be on Monday,April 17ᵗʰ.

Which of the following is not considered a secondary authority?

Josephine is considering taking a 6-month rotation in Paris for her job.Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

A tax practitioner can avoid IRS penalty relating to a tax return position:

If a taxpayer is due a refund,she does not have to file a tax return.

Under the tax law,taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g.,due to fraud).

An acquiescence indicates that the IRS lost a court case and that it has decided to follow the court's ruling in the future.

Dan received a letter from the IRS that gave him the choice of (1)requesting a conference with an Appeals Officer or (2)agreeing to a proposed tax adjustment.Dan received the:

Bill filed his 2018 tax return on March 15ᵗʰ,2019.The statute of limitations for IRS assessment on Bill's 2018 tax return should end:

An extension to file a tax return does not extend the due date for tax payments.

Which of the following is not considered a primary authority?

The Internal Revenue Code of 1986 is the name of the current income tax code of the United States of America.

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Which of the following audits is the most common and typically less comprehensive?

Circular 230 was issued by:

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview dependents and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Individual From Agi Deductions

Filters