Question 1

If Paula requests an extension to file her tax return, the latest she could file her return without penalty is:

Accepted Answer

A)  September 15th. 
B)  October 15th. 
C)  August 15th. 
D)  November 15th. 
E)  None of these. 
A)  September 15th. 
B)  October 15th. 
C)  August 15th. 
D)  November 15th. 
E)  None of these.

Question 2

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 3

For the following tax returns, identify which of the three audit types will most likely be utilized.
a. The IRS selected Don's return for audit because of his high itemized deductions. The IRS would like documentation of these deductions.
b. Large Public Corporation is a very large publicly traded corporation. It is involved in many complex transactions that have significant tax ramifications.
c. George and Barbara operate a small business out of their home. The IRS has identified a couple of issues that may relate to their business.
d. The IRS selected Bill and Hillary's tax return for review because of some of their investment sales. They would like a better understanding of the transactions and parties involved.

Accepted Answer

(a) Correspondence exam 
(b) F

Question 4

Which of the following has the lowest authoritative weight?

Accepted Answer

A)  Legislative regulation. 
B)  Private letter ruling. 
C)  Revenue ruling. 
D)  Interpretative regulation. 
E)  Revenue procedure. 
A)  Legislative regulation. 
B)  Private letter ruling. 
C)  Revenue ruling. 
D)  Interpretative regulation. 
E)  Revenue procedure.

Question 5

For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.

Accepted Answer

A) True 
 B)False

Question 6

Allen filed his 2014 tax return on May 15th, 2015 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Accepted Answer

A)  May 15th, 2017. 
B)  April 15th, 2017. 
C)  May 15th, 2018. 
D)  April 15th, 2018. 
E)  None of these. 
A)  May 15th, 2017. 
B)  April 15th, 2017. 
C)  May 15th, 2018. 
D)  April 15th, 2018. 
E)  None of these.

Question 7

Greg earned $20,500 this year and had $1,500 of federal income taxes withheld from his salary. Assuming that Greg will have a total tax liability of $1,000 (and thus will receive a $500) refund, he:

Accepted Answer

A)  is required to file a tax return. 
B)  is not required to file a tax return but should file a return anyway. 
C)  is required to file a tax return but should not file because he owes no tax. 
D)  is not required to file a tax return and should not file a return. 
E)  None of these. 
A)  is required to file a tax return. 
B)  is not required to file a tax return but should file a return anyway. 
C)  is required to file a tax return but should not file because he owes no tax. 
D)  is not required to file a tax return and should not file a return. 
E)  None of these.

Question 8

For which of the following tax violations is a civil penalty not imposed on taxpayers?

Accepted Answer

A)  failure to file a tax return. 
B)  failure to pay tax owed. 
C)  fraud. 
D)  failure to make estimated tax payments. 
E)  None of these. 
A)  failure to file a tax return. 
B)  failure to pay tax owed. 
C)  fraud. 
D)  failure to make estimated tax payments. 
E)  None of these.

Question 9

The three basic types of IRS examinations are computer exams, office exams, and business exams.

Accepted Answer

A) True 
 B)False

Question 10

Jeremy has a new client. He has identified a research question that relates to a transaction that the client completed several months ago. This type of research question will primarily involve:

Accepted Answer

A)  open facts. 
B)  new facts. 
C)  old facts. 
D)  closed facts. 
E)  None of these. 
A)  open facts. 
B)  new facts. 
C)  old facts. 
D)  closed facts. 
E)  None of these.

Question 11

Corporations are required to file a tax return annually regardless of their taxable income.

Accepted Answer

A) True 
 B)False

If Paula requests an extension to file her tax return, the latest she could file her return without penalty is:

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 has the lowest authoritative weight?

For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.

Allen filed his 2014 tax return on May 15th, 2015 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Greg earned $20,500 this year and had $1,500 of federal income taxes withheld from his salary. Assuming that Greg will have a total tax liability of $1,000 (and thus will receive a $500) refund, he:

For which of the following tax violations is a civil penalty not imposed on taxpayers?

The three basic types of IRS examinations are computer exams, office exams, and business exams.

Jeremy has a new client. He has identified a research question that relates to a transaction that the client completed several months ago. This type of research question will primarily involve:

Corporations are required to file a tax return annually regardless of their taxable income.

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters

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

If Paula requests an extension to file her tax return, the latest she could file her return without penalty is:

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 has the lowest authoritative weight?

For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.

Allen filed his 2014 tax return on May 15th, 2015 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Greg earned $20,500 this year and had $1,500 of federal income taxes withheld from his salary. Assuming that Greg will have a total tax liability of $1,000 (and thus will receive a $500) refund, he:

For which of the following tax violations is a civil penalty not imposed on taxpayers?

The three basic types of IRS examinations are computer exams, office exams, and business exams.

Jeremy has a new client. He has identified a research question that relates to a transaction that the client completed several months ago. This type of research question will primarily involve:

Corporations are required to file a tax return annually regardless of their taxable income.

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters