Question 1

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 2

Mr. and Mrs. Lester failed to report a $40,540 capital gain on their 2011 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2012. What is the last date on which the IRS can assess additional tax for 2011?

Accepted Answer

The unreported income does not exceed 25

Question 3

Which of the following statements about the U.S. Tax Court is false?

Accepted Answer

A)  Tax Court judges are experts who specialize in the tax law. 
B)  Individuals can request a jury trial in the Tax Court. 
C)  The Tax Court is one of three courts of original jurisdiction for tax cases. 
D)  Both individual and corporate taxpayers can take their case to the Tax Court. 
A)  Tax Court judges are experts who specialize in the tax law. 
B)  Individuals can request a jury trial in the Tax Court. 
C)  The Tax Court is one of three courts of original jurisdiction for tax cases. 
D)  Both individual and corporate taxpayers can take their case to the Tax Court.

Question 4

Gretchen's 2011 tax return, due April 15, 2012, was filed on July 15, 2012. Her tax due with the return was $1,200. Gretchen owes a late filing penalty of $180.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about the tax litigation process is false?

Accepted Answer

A)  Taxpayers can begin the litigation process in the U.S. Tax Court, a U.S. District Court, or the U.S. Court of Federal Claims. 
B)  A taxpayer can receive a jury trial only in a U.S. District Court. 
C)  If the government loses a tax case at the trial level, it can appeal the case to the U.S. Supreme Court. 
D)  A decision in a tax case by the Supreme Court is final. 
A)  Taxpayers can begin the litigation process in the U.S. Tax Court, a U.S. District Court, or the U.S. Court of Federal Claims. 
B)  A taxpayer can receive a jury trial only in a U.S. District Court. 
C)  If the government loses a tax case at the trial level, it can appeal the case to the U.S. Supreme Court. 
D)  A decision in a tax case by the Supreme Court is final.

Question 6

This year, the IRS audited Mr. and Mr. Simon's 2009 income tax return and determined that they underpaid their tax by $13,780. Which of the following statements is true?

Accepted Answer

A)  If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will not pay anything as a result of the audit. 
B)  If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will pay a total of $13,780 as a result of the audit. 
C)  If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will pay $13,780 plus interest on the underpayment as a result of the audit. 
D)  If the revenue agent concludes that the Simons were negligent in preparing their return, the agent may assess a $10,335 penalty. 
A)  If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will not pay anything as a result of the audit. 
B)  If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will pay a total of $13,780 as a result of the audit. 
C)  If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will pay $13,780 plus interest on the underpayment as a result of the audit. 
D)  If the revenue agent concludes that the Simons were negligent in preparing their return, the agent may assess a $10,335 penalty.

Which of the following statements about taxpayer negligence is false?

Mr. and Mrs. Lester failed to report a $40,540 capital gain on their 2011 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2012. What is the last date on which the IRS can assess additional tax for 2011?

Which of the following statements about the U.S. Tax Court is false?

Gretchen's 2011 tax return, due April 15, 2012, was filed on July 15, 2012. Her tax due with the return was $1,200. Gretchen owes a late filing penalty of $180.

Which of the following statements about the tax litigation process is false?

This year, the IRS audited Mr. and Mr. Simon's 2009 income tax return and determined that they underpaid their tax by $13,780. Which of the following statements is true?

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, Partnerships, Llcs, and S Corporations

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

Which of the following statements about taxpayer negligence is false?

Mr. and Mrs. Lester failed to report a $40,540 capital gain on their 2011 Form 1040. The gross income reported on the return was $169,404, and the return was filed on January 20, 2012. What is the last date on which the IRS can assess additional tax for 2011?

Which of the following statements about the U.S. Tax Court is false?

Gretchen's 2011 tax return, due April 15, 2012, was filed on July 15, 2012. Her tax due with the return was $1,200. Gretchen owes a late filing penalty of $180.

Which of the following statements about the tax litigation process is false?

This year, the IRS audited Mr. and Mr. Simon's 2009 income tax return and determined that they underpaid their tax by $13,780. Which of the following statements is true?

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, Partnerships, Llcs, and S Corporations

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