Exam 17: An Introduction to Taxation

List the steps in the legislative process for major tax reform.

The Internal Revenue Service is the branch of the Treasury Department responsible for administering the federal tax law.

An individual will be subject to gift tax on gifts made to a charity greater than $14,000.

Charlie makes the following gifts in the current year: $40,000 to his spouse,$30,000 to his church,$18,000 to his nephew,and $25,000 to a friend.Assuming Charlie does not elect gift splitting with his wife,his taxable gifts in the current year will be

The primary liability for payment of the gift tax is imposed upon the donee.

Kate files her tax return 36 days after the due date.When she files the return,she sends a check for $2,000 which is the balance of the tax owed by her.Kate's penalty for failure to file a return will be

Gifts between spouses are generally exempt from transfer taxes.

While federal and state income taxes,as well as the federal gift and estate taxes,are generally progressive in nature,property taxes are proportional.

The largest source of federal revenues is the corporate income tax.