Question 1

The IRS will issue a ruling

Accepted Answer

A) on prospective transactions only. 
B) only if regulations have been issued on the subject. 
C) on a completed transaction for which a return has been filed. 
D) to clarify the tax treatment of a transaction. 
A) on prospective transactions only. 
B) only if regulations have been issued on the subject. 
C) on a completed transaction for which a return has been filed. 
D) to clarify the tax treatment of a transaction.

Question 2

The court in which the taxpayer does not have to pay the tax and then litigate for a refund is the

Accepted Answer

A) U)S.Court of Federal Claims. 
B) Federal district court. 
C) Tax Court. 
D) all of the above 
A) U)S.Court of Federal Claims. 
B) Federal district court. 
C) Tax Court. 
D) all of the above

Question 3

Jeff's tax liability for last year was $30,000.Jeff projects that his tax for this year will be only $25,000.Jeff is self-employed and,thus,will have no withholding.His AGI for last year did not exceed $150,000.How much estimated tax,at a minimum,should Jeff pay for this year to avoid the penalty for underpayment of estimated taxes? How would your answer change if his income exceeded last year's due to a large capital gain at the end of the year?

Accepted Answer

Jeff's AGI for last year does not exceed

Question 4

A taxpayer will receive a 30-day letter

Accepted Answer

A) to notify him that the return was selected for audit. 
B) after a response to the 90-day letter with a protest. 
C) only if the taxpayer does not sign Form 870. 
D) only if the taxpayer is more than 30 days late in filing the tax return. 
A) to notify him that the return was selected for audit. 
B) after a response to the 90-day letter with a protest. 
C) only if the taxpayer does not sign Form 870. 
D) only if the taxpayer is more than 30 days late in filing the tax return.

Question 5

A taxpayer's return is audited and additional taxes are assessed.The IRS also asserts that a negligence penalty should be assessed.The taxpayer concurs with the additional $15,000 tax liability;$7,000 of this amount is attributable to negligence.What is the amount of the penalty for negligence?

Accepted Answer

A) $700 
B) $1,400 
C) $5,600 
D) $1,750 
A) $700 
B) $1,400 
C) $5,600 
D) $1,750

Question 6

Explain accountant-client privilege.What are the similarities and differences between it and attorney-client privilege?

Accepted Answer

According to judicial doctrine,certain c

Question 7

Richard recently won a popular television reality show and its one million dollar prize.However,he omitted the prize money from his tax return for the year.What penalties can the IRS assess?

Accepted Answer

•Criminal or civil fraud
•Negligence or

Question 8

In which of the situations below will a taxpayer not be assessed interest on the tax remitted?

Accepted Answer

A) An extension is obtained and the tax is paid within the extension period. 
B) A timely return is filed but the taxpayer must delay payment of the taxes. 
C) The return is audited and additional tax is owed. 
D) None of the above situations. 
A) An extension is obtained and the tax is paid within the extension period. 
B) A timely return is filed but the taxpayer must delay payment of the taxes. 
C) The return is audited and additional tax is owed. 
D) None of the above situations.

Question 9

Identify which of the following statements is true.

Accepted Answer

A) The statute of limitations,which stipulates the time frame within which either the government or the taxpayer may request a redetermination of tax due,usually expires six years after the date on which the return is filed. 
B) The statute of limitations limits the time during which a taxpayer may claim a refund of an overpayment of tax. 
C) If a taxpayer omits from gross income an amount in excess of 25% of the gross income shown on his return,the statute of limitations is five years. 
D) All of the above are true. 
A) The statute of limitations,which stipulates the time frame within which either the government or the taxpayer may request a redetermination of tax due,usually expires six years after the date on which the return is filed. 
B) The statute of limitations limits the time during which a taxpayer may claim a refund of an overpayment of tax. 
C) If a taxpayer omits from gross income an amount in excess of 25% of the gross income shown on his return,the statute of limitations is five years. 
D) All of the above are true.

Question 10

What is the IRS guideline for determining whether a tax return position has substantial authority?

Accepted Answer

A) A person knowledgeable in the tax law concludes that the position has a something less than 50% likelihood of being supported. 
B) A person knowledgeable in the tax law concludes that the position has at least a 50% likelihood of being supported. 
C) A person knowledgeable in the tax law concludes that the position has at least a two-thirds likelihood of being supported. 
D) A person knowledgeable in the tax law concludes that the position has at least a 75% likelihood of being supported. 
A) A person knowledgeable in the tax law concludes that the position has a something less than 50% likelihood of being supported. 
B) A person knowledgeable in the tax law concludes that the position has at least a 50% likelihood of being supported. 
C) A person knowledgeable in the tax law concludes that the position has at least a two-thirds likelihood of being supported. 
D) A person knowledgeable in the tax law concludes that the position has at least a 75% likelihood of being supported.

Question 11

Explain the four conditions that must be met in civil cases for the burden of proving any factual issue relevant to the determination of taxpayer liability to rest with the IRS.

Accepted Answer

The taxpayer must introduce "credible ev

Question 12

If Brad files his last year's individual tax return on July 5 of the current year after having requested an extension,what is the amount of his failure-to-pay penalty if his total tax is $10,000 and he paid $9,500 through timely withholding and $500 with the return?

Accepted Answer

A) $0 
B) $6 
C) $60 
D) none of the above 
A) $0 
B) $6 
C) $60 
D) none of the above

Question 13

What is the difference between the burden of proof for civil and criminal fraud?

Accepted Answer

The burden of proof is:
Clear

Question 14

What is the penalty for a tax return preparer who lacks substantial authority to take a return position?

Accepted Answer

A) $50 
B) $250 
C) $1,000 
D) 20% of the understatement 
A) $50 
B) $250 
C) $1,000 
D) 20% of the understatement

Question 15

Tax return preparers can be penalized for the following activities except

Accepted Answer

A) failure to sign a return. 
B) failure to give a copy of the return to the taxpayer. 
C) failure to maintain IRS continuing education requirements. 
D) failure to provide the preparer's identification number on the return. 
A) failure to sign a return. 
B) failure to give a copy of the return to the taxpayer. 
C) failure to maintain IRS continuing education requirements. 
D) failure to provide the preparer's identification number on the return.

Question 16

On April 15,2010,a married couple filed their joint 2009 tax return showing gross income of $120,000.Their return was prepared by a professional tax preparer who mistakenly omitted $45,000 of income,which the preparer in good faith considered to be nontaxable.No information with regard to this omitted income was disclosed on the return or attached statements.By what date must the IRS assert a notice of deficiency before the statute of limitations expires?

Accepted Answer

A) April 15,2015 
B) December 31,2011 
C) April 15,2009 
D) December 31,2009 
A) April 15,2015 
B) December 31,2011 
C) April 15,2009 
D) December 31,2009

Question 17

Terry files his return on March 31.The return shows taxes of $6,000,and Terry pays this entire amount when he files his return.By what time must he file a claim of refund?

Accepted Answer

A) the later of two years from the return filing or three years from the date the tax is paid 
B) the later of three years from the return due date or two years from the date the tax is paid 
C) two years from the payment of tax date,if the IRS mails a notice of deficiency in the third year following the due date of the return 
D) four years from the payment of tax date,if the IRS mails a notice of deficiency 
A) the later of two years from the return filing or three years from the date the tax is paid 
B) the later of three years from the return due date or two years from the date the tax is paid 
C) two years from the payment of tax date,if the IRS mails a notice of deficiency in the third year following the due date of the return 
D) four years from the payment of tax date,if the IRS mails a notice of deficiency

Question 18

How long does a taxpayer have to file a petition with the U.S.Tax Court following the date of the Statutory Notice of Deficiency?

Accepted Answer

A) 90 days 
B) three months 
C) 180 days 
D) 30 days 
A) 90 days 
B) three months 
C) 180 days 
D) 30 days

Question 19

Identify which of the following statements is false.

Accepted Answer

A) In addition to interest,taxpayers may be subject to penalties for failure to file on time and failure to pay taxes by the due date for the return. 
B) The failure-to-file penalty is levied against taxpayers who do not file a return by its due date at a rate of 5% per month (or fraction of a month)with a maximum additional penalty of 25%. 
C) The failure-to-pay penalty is imposed at a rate of 5% per month (or fraction of a month)with a maximum penalty of 25%. 
D) A different interest rate is charged to corporate and noncorporate taxpayers. 
A) In addition to interest,taxpayers may be subject to penalties for failure to file on time and failure to pay taxes by the due date for the return. 
B) The failure-to-file penalty is levied against taxpayers who do not file a return by its due date at a rate of 5% per month (or fraction of a month)with a maximum additional penalty of 25%. 
C) The failure-to-pay penalty is imposed at a rate of 5% per month (or fraction of a month)with a maximum penalty of 25%. 
D) A different interest rate is charged to corporate and noncorporate taxpayers.

Question 20

A taxpayer can automatically escape the penalty for underpayment of taxes by

Accepted Answer

A) owing less than $1,000 in taxes over and above the taxes withheld from wages. 
B) owing taxes in the previous year. 
C) having a casualty loss. 
D) none of the above 
A) owing less than $1,000 in taxes over and above the taxes withheld from wages. 
B) owing taxes in the previous year. 
C) having a casualty loss. 
D) none of the above

The IRS will issue a ruling

The court in which the taxpayer does not have to pay the tax and then litigate for a refund is the

A taxpayer will receive a 30-day letter

A taxpayer's return is audited and additional taxes are assessed.The IRS also asserts that a negligence penalty should be assessed.The taxpayer concurs with the additional $15,000 tax liability;$7,000 of this amount is attributable to negligence.What is the amount of the penalty for negligence?

Explain accountant-client privilege.What are the similarities and differences between it and attorney-client privilege?

Richard recently won a popular television reality show and its one million dollar prize.However,he omitted the prize money from his tax return for the year.What penalties can the IRS assess?

In which of the situations below will a taxpayer not be assessed interest on the tax remitted?

Identify which of the following statements is true.

What is the IRS guideline for determining whether a tax return position has substantial authority?

Explain the four conditions that must be met in civil cases for the burden of proving any factual issue relevant to the determination of taxpayer liability to rest with the IRS.

If Brad files his last year's individual tax return on July 5 of the current year after having requested an extension,what is the amount of his failure-to-pay penalty if his total tax is $10,000 and he paid $9,500 through timely withholding and $500 with the return?

What is the difference between the burden of proof for civil and criminal fraud?

What is the penalty for a tax return preparer who lacks substantial authority to take a return position?

Tax return preparers can be penalized for the following activities except

Terry files his return on March 31.The return shows taxes of $6,000,and Terry pays this entire amount when he files his return.By what time must he file a claim of refund?

How long does a taxpayer have to file a petition with the U.S.Tax Court following the date of the Statutory Notice of Deficiency?

Identify which of the following statements is false.

A taxpayer can automatically escape the penalty for underpayment of taxes by

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

US Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Us Taxation of Foreign-Related Transactions

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Exam 15: Administrative Procedures

The IRS will issue a ruling

The court in which the taxpayer does not have to pay the tax and then litigate for a refund is the

A taxpayer will receive a 30-day letter

A taxpayer's return is audited and additional taxes are assessed.The IRS also asserts that a negligence penalty should be assessed.The taxpayer concurs with the additional $15,000 tax liability;$7,000 of this amount is attributable to negligence.What is the amount of the penalty for negligence?

Explain accountant-client privilege.What are the similarities and differences between it and attorney-client privilege?

Richard recently won a popular television reality show and its one million dollar prize.However,he omitted the prize money from his tax return for the year.What penalties can the IRS assess?

In which of the situations below will a taxpayer not be assessed interest on the tax remitted?

Identify which of the following statements is true.

What is the IRS guideline for determining whether a tax return position has substantial authority?

Explain the four conditions that must be met in civil cases for the burden of proving any factual issue relevant to the determination of taxpayer liability to rest with the IRS.

If Brad files his last year's individual tax return on July 5 of the current year after having requested an extension,what is the amount of his failure-to-pay penalty if his total tax is $10,000 and he paid $9,500 through timely withholding and $500 with the return?

What is the difference between the burden of proof for civil and criminal fraud?

What is the penalty for a tax return preparer who lacks substantial authority to take a return position?

Tax return preparers can be penalized for the following activities except

Terry files his return on March 31.The return shows taxes of $6,000,and Terry pays this entire amount when he files his return.By what time must he file a claim of refund?

How long does a taxpayer have to file a petition with the U.S.Tax Court following the date of the Statutory Notice of Deficiency?

Identify which of the following statements is false.

A taxpayer can automatically escape the penalty for underpayment of taxes by

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

US Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Us Taxation of Foreign-Related Transactions

Filters