Exam 1: An Introduction to Taxation

Mia is self-employed as a consultant.During 2017,Mia earned $180,000 in self-employment income.What is Mia's self-employment tax?

Latashia reports $100,000 of gross income on her 2017 tax return,filed on the April 17,2018 due date.She omits $30,000 of income,but the error was not fraudulent.When does the statute of limitations for examining her tax return expire?

The terms "progressive tax" and "flat tax" are synonymous.

The largest source of revenues for the federal government comes from

Vertical equity means that

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

Brad and Angie had the following income and deductions during 2017: Calculate Brad and Angie's tax liability due or refund,assuming that they have 2 personal exemptions.They file a joint tax return.

Peyton has adjusted gross income of $2,000,000 on his 2017 tax return,filed April 17,2018,the due date.He accidentally failed to include $200,000 that he received for a television advertisement.How long does the IRS have to audit Peyton's federal tax return?

A taxpayer's average tax rate is the tax rate applied to an incremental amount of taxable income that is added to the tax base.

The tax law encompasses administrative and judicial interpretations,such as Treasury regulations,revenue rulings,revenue procedures,and court decisions,as well as statutes.

What is an important aspect of a limited liability partnership?

When property is transferred,the gift tax is based on

Frederick failed to file his 2017 tax return on a timely basis.In fact,he filed his 2017 income tax return on October 31,2018,(the due date was April 17,2018) and paid the amount due at that time.He failed to make timely extensions.Below are amounts from his 2017 return: Frederick sent a check for $1,582 in payment of his liability.He thinks that he has met all of his financial obligations to the government for 2017.For what additional amounts may Frederick be liable assuming any applicable interest rate is 6%?

Limited liability companies may elect to be taxed as corporations.

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

Property is generally included on an estate tax return at its historical cost basis.

The Sixteenth Amendment to the U.S.Constitution permits the passage of a federal income tax law.

Martha is self-employed in 2017.Her self employment income is $140,000.What is her self-employment tax?

For gift tax purposes,a $14,000 annual exclusion per donee is permitted.

Which of the following steps,related to a tax bill,occurs first?