Question 1

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 the above. 
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 the above.

Question 2

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income. What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Accepted Answer

There are serious ramifications of commi

Question 3

In general, a CPA will satisfy his professional responsibilities under the Statement on Standards for Tax Services when recommending a tax return position if he complies with the standards imposed by the applicable tax authority.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following types of tax services are arranged by code section?

Accepted Answer

A) legal tax service. 
B) annotated tax service. 
C) professional tax service. 
D) topical tax service. 
E) None of the above. 
A) legal tax service. 
B) annotated tax service. 
C) professional tax service. 
D) topical tax service. 
E) None of the above.

Question 5

Secondary authorities are official sources of the tax law with a lesser "weight" than primary authorities.

Accepted Answer

A) True 
 B)False

Question 6

Lakeisha, a 1st year staff accountant, was researching a tax issue and found what appears to be the answer to her question in her introductory tax textbook that she bought three years ago. She is thrilled because she thought it would take much longer to find her answer. What type of authority is the textbook? What are other examples of this type of authorities? Can Lakeisha base her research conclusion on the textbook or similar authorities? Any suggestions for Lakeisha?

Accepted Answer

There are two broad categories of tax au

Question 7

A tax practitioner can avoid IRS penalty relating to a tax return position:

Accepted Answer

A) only if the position has a more likely than not chance of being sustained by the IRS or courts. 
B) if the position has a realistic possibility of being sustained by the IRS or courts. 
C) if there is not substantial authority to support the position. 
D) if the position has a reasonable basis and is disclosed on the tax return. 
E) None of the above. 
A) only if the position has a more likely than not chance of being sustained by the IRS or courts. 
B) if the position has a realistic possibility of being sustained by the IRS or courts. 
C) if there is not substantial authority to support the position. 
D) if the position has a reasonable basis and is disclosed on the tax return. 
E) None of the above.

Question 8

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 9

Carey was researching a tax issue and located what appears to be a favorable IRS regulation. He knows that regulations serve different purposes and are issued in different forms. Which purpose and which form of regulation would provide Carey the most confidence that he has found an authority that carries a lot of weight for the long term? How could Carey check the status of this regulation?

Accepted Answer

Regulations are the Treasury Department'

Question 10

Bill filed his 2016 tax return on March 15th, 2017. The statute of limitations for IRS assessment on Bill's 2016 tax return should end:

Accepted Answer

A) March 15th, 2019. 
B) April 15th, 2019. 
C) March 15th, 2020. 
D) April 15th, 2020. 
E) None of the abovE.The SOL ends three years from the later of (1) the date the tax return was filed or (2) the tax return's original due date. 
A) March 15th, 2019. 
B) April 15th, 2019. 
C) March 15th, 2020. 
D) April 15th, 2020. 
E) None of the abovE.The SOL ends three years from the later of (1) the date the tax return was filed or (2) the tax return's original due date.

Question 11

Kodak is a beginning tax researcher. He knows that the 1st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Accepted Answer

To answer a tax question, you must under

Question 12

Which of the following is a false statement? A taxpayer filing a fraudulent tax return:

Accepted Answer

A) is potentially subject to criminal penalties. 
B) is potentially subject to civil penalties. 
C) is potentially subject to fines and a prison sentence. 
D) will have an unlimited statute of limitations for the fraudulent tax return. 
E) None of the above. 
A) is potentially subject to criminal penalties. 
B) is potentially subject to civil penalties. 
C) is potentially subject to fines and a prison sentence. 
D) will have an unlimited statute of limitations for the fraudulent tax return. 
E) None of the above.

Question 13

The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree to a proposed IRS adjustment on the taxpayer's income tax return.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following audits is the least common, broadest in scope, and typically most complex?

Accepted Answer

A) Correspondence. 
B) Targeted. 
C) Office. 
D) Field. 
E) None of the above. 
A) Correspondence. 
B) Targeted. 
C) Office. 
D) Field. 
E) None of the above.

Question 15

Josephine is considering taking a 6-month rotation in Paris for her job. Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Accepted Answer

A) Determination letter. 
B) Private letter ruling. 
C) Tax treaty. 
D) Regulation. 
E) Revenue procedure. 
A) Determination letter. 
B) Private letter ruling. 
C) Tax treaty. 
D) Regulation. 
E) Revenue procedure.

Question 16

Princess, who resides in the 2nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

Accepted Answer

A) 2nd Circuit. 
B) Federal Circuit. 
C) 1st Circuit. 
D) 2nd Circuit or the Federal Circuit. 
E) None of the above. 
A) 2nd Circuit. 
B) Federal Circuit. 
C) 1st Circuit. 
D) 2nd Circuit or the Federal Circuit. 
E) None of the above.

Question 17

The Senate Ways and Means Committee is in charge of drafting tax bills in the U.S. Senate.

Accepted Answer

A) True 
 B)False

Question 18

In researching a question of fact, the researcher should focus her efforts on identifying authorities with fact patterns similar to her client's facts.

Accepted Answer

A) True 
 B)False

Question 19

The regulation with the lowest authoritative weight is the:

Accepted Answer

A) Procedural regulation. 
B) Interpretative regulation. 
C) Proposed regulation. 
D) Legislative regulation. 
E) None of the above. 
A) Procedural regulation. 
B) Interpretative regulation. 
C) Proposed regulation. 
D) Legislative regulation. 
E) None of the above.

Question 20

This year April 15th falls on a Saturday. Individual tax returns will be due on:

Accepted Answer

A) April 14th. 
B) April 15th. 
C) April 16th. 
D) April 17th. 
E) None of the above. 
A) April 14th. 
B) April 15th. 
C) April 16th. 
D) April 17th. 
E) None of the above.

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

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

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income. What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

In general, a CPA will satisfy his professional responsibilities under the Statement on Standards for Tax Services when recommending a tax return position if he complies with the standards imposed by the applicable tax authority.

Which of the following types of tax services are arranged by code section?

Secondary authorities are official sources of the tax law with a lesser "weight" than primary authorities.

A tax practitioner can avoid IRS penalty relating to a tax return position:

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.

Bill filed his 2016 tax return on March 15th, 2017. The statute of limitations for IRS assessment on Bill's 2016 tax return should end:

Kodak is a beginning tax researcher. He knows that the 1st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Which of the following is a false statement? A taxpayer filing a fraudulent tax return:

The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree to a proposed IRS adjustment on the taxpayer's income tax return.

Which of the following audits is the least common, broadest in scope, and typically most complex?

Josephine is considering taking a 6-month rotation in Paris for her job. Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Princess, who resides in the 2nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

The Senate Ways and Means Committee is in charge of drafting tax bills in the U.S. Senate.

In researching a question of fact, the researcher should focus her efforts on identifying authorities with fact patterns similar to her client's facts.

The regulation with the lowest authoritative weight is the:

This year April 15th falls on a Saturday. Individual tax returns will be due on:

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Bill filed his 2016 tax return on March 15^th, 2017. The statute of limitations for IRS assessment on Bill's 2016 tax return should end:

Kodak is a beginning tax researcher. He knows that the 1^st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Princess, who resides in the 2^nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

This year April 15^th falls on a Saturday. Individual tax returns will be due on: