Question 1

Which of the following committees typically initiates tax legislation?

Accepted Answer

A)  House Ways and Means Committee. 
B)  Joint Conference Committee. 
C)  Senate Finance Committee. 
D)  Senate Tax Committee. 
E)  None of the choices are correct. 
A)  House Ways and Means Committee. 
B)  Joint Conference Committee. 
C)  Senate Finance Committee. 
D)  Senate Tax Committee. 
E)  None of the choices are correct.

Question 2

Which of the following is not a common method that the IRS uses to select returns for audit?

Accepted Answer

A)  DIF system. 
B)  Tax Select system. 
C)  Information matching. 
D)  Document perfection. 
E)  None of the choices are correct. 
A)  DIF system. 
B)  Tax Select system. 
C)  Information matching. 
D)  Document perfection. 
E)  None of the choices are correct.

Question 3

Which of the following is not a factor that determines whether a taxpayer is required to file a tax return?

Accepted Answer

A)  Filing status. 
B)  Taxpayer's gross income. 
C)  Taxpayer's employment. 
D)  Taxpayer's age. 
E)  None of the choices are correct. 
A)  Filing status. 
B)  Taxpayer's gross income. 
C)  Taxpayer's employment. 
D)  Taxpayer's age. 
E)  None of the choices are correct.

Question 4

Martin has never filed a 2018 tax return despite earning approximately $30,000 providing landscaping work in the community. In what tax year, will the statute of limitations expire for Martin's 2018 tax return?

Accepted Answer

A)  2021. 
B)  2022. 
C)  2025. 
D)  2026. 
E)  None of the choices are correct. 
A)  2021. 
B)  2022. 
C)  2025. 
D)  2026. 
E)  None of the choices are correct.

Question 5

If the IRS assesses additional tax on a tax return upon audit, a taxpayer may be subject to interest and penalties on the underpayment.

Accepted Answer

A) True 
 B)False

Question 6

For the following taxpayers, please recommend the most advantageous trial level court(s) to litigate a tax issue with the IRS.
a. Joe is litigating a tax issue with the IRS that is considered a question of fact (i.e., the answers depends on the facts of the case). There is not a lot of authority on point for this case but Joe has a very appealing story to justify his position that is likely to be viewed sympathetically by his peers.
b. The Circuit Court of Appeals for the Federal Circuit recently issued an opinion that is very favorable to the issue that Jesse plans to litigate with the IRS.
c. The Circuit Court of Appeals for the Federal Circuit recently issued an opinion that is not favorable to the issue that Hank plans to litigate with the IRS.
d. The 7th Circuit (where Elizabeth resides) recently issued an opinion that is very favorable to the issue that Elizabeth plans to litigate with the IRS.

Accepted Answer

(a) U.S. District Court because it is th

Question 7

If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th.

Accepted Answer

A) True 
 B)False

Question 8

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S. District Court to contest the adjustment and hear the case.

Accepted Answer

A) True 
 B)False

Question 9

Dan received a letter from the IRS that gave him the choice of (1) requesting a conference with an Appeals Officer or (2) agreeing to a proposed tax adjustment. Dan received the:

Accepted Answer

A)  30-day letter. 
B)  90-day letter. 
C)  Appeals letter. 
D)  Tax adjustment letter. 
E)  None of the choices are correct. 
A)  30-day letter. 
B)  90-day letter. 
C)  Appeals letter. 
D)  Tax adjustment letter. 
E)  None of the choices are correct.

Question 10

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 11

Rebecca is at a loss. A new tax law was recently passed, and she needs to get a better understanding of why the tax law was passed and the intent of the law from an official authority. Describe what authorities may be especially helpful to Rebecca and why she can't find many authorities that discuss the new law.

Accepted Answer

The House Ways and Means Committee, Sena

Question 12

In a planning context,

Accepted Answer

A)  closed facts are preferred to open facts. 
B)  new facts are preferred to old facts. 
C)  old facts are preferred to new facts. 
D)  open facts are preferred to closed facts. 
E)  None of the choices are correct. 
A)  closed facts are preferred to open facts. 
B)  new facts are preferred to old facts. 
C)  old facts are preferred to new facts. 
D)  open facts are preferred to closed facts. 
E)  None of the choices are correct.

Which of the following committees typically initiates tax legislation?

Which of the following is not a common method that the IRS uses to select returns for audit?

Which of the following is not a factor that determines whether a taxpayer is required to file a tax return?

Martin has never filed a 2018 tax return despite earning approximately $30,000 providing landscaping work in the community. In what tax year, will the statute of limitations expire for Martin's 2018 tax return?

If the IRS assesses additional tax on a tax return upon audit, a taxpayer may be subject to interest and penalties on the underpayment.

If April 15^th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17^th.

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S. District Court to contest the adjustment and hear the case.

Dan received a letter from the IRS that gave him the choice of (1) requesting a conference with an Appeals Officer or (2) agreeing to a proposed tax adjustment. Dan received the:

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.

In a planning context,

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, 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

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

Which of the following committees typically initiates tax legislation?

Which of the following is not a common method that the IRS uses to select returns for audit?

Which of the following is not a factor that determines whether a taxpayer is required to file a tax return?

Martin has never filed a 2018 tax return despite earning approximately $30,000 providing landscaping work in the community. In what tax year, will the statute of limitations expire for Martin's 2018 tax return?

If the IRS assesses additional tax on a tax return upon audit, a taxpayer may be subject to interest and penalties on the underpayment.

If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th.

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S. District Court to contest the adjustment and hear the case.

Dan received a letter from the IRS that gave him the choice of (1) requesting a conference with an Appeals Officer or (2) agreeing to a proposed tax adjustment. Dan received the:

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.

In a planning context,

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, 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

If April 15^th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17^th.