FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

Some states use their state income tax return as a means of collecting unpaid sales and use taxes.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

Essay

Review LaterAdd Note

Review Later

Tom,a calendar year taxpayer,filed his 2006 Federal income tax return on April 3,2007.In 2011,the IRS audits this return and assesses an income tax deficiency against Tom.On the grounds that the statute of limitations has run,Tom disputes the assessment.Is Tom correct? Why?

Correct Answer

verified

Tom is correct as to the usual three-yea...

View Answer

Show Answer

Question 43

True/False

Review LaterAdd Note

Before the Sixteenth Amendment to the Constitution was ratified,there was no valid Federal income tax on individuals.

In connection with facilitating the function of the IRS in the administration of the tax laws,comment on the utility of the following:

The civil fraud penalty can entail large fines and possible incarceration.

The IRS agent auditing the return will issue an RAR even if the taxpayer owes no additional taxes.

The states that impose a general sales tax also have a use tax.

When a state decouples from a Federal tax provision,it means that this provision will not apply for state income tax purposes.

For the tax year 2011,Sam reported gross income of $400,000 on his timely filed Federal income tax return.

Federal excise tax is no longer imposed on cosmetics.

During any month in which both the failure to file penalty and the failure to pay penalty apply,the failure to file penalty is reduced by the amount of the failure to pay penalty.

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

A lack of compliance in the payment of use taxes can be eased by several means.In this regard,comment on the following:

Virtually all state income tax returns contain checkoff boxes for donations to various causes.On what grounds has this procedure been criticized?

With regard to state income taxes,explain what is meant by the "jock tax"?

Both economic and social considerations can be used to justify:

Provisions in the tax law that promote energy conservation and more use of alternative (non-fossil) fuels can be justified by:

For omissions from gross income in excess of 25% of that reported,there is no statute of limitations on additional income tax assessments by the IRS.

A landlord leases property upon which the tenant makes improvements.The improvements are significant and are not made in lieu of rent.At the end of the lease,the value of the improvements are not income to the landlord.This rule is an example of:

A CPA firm in California sends many of its less complex tax returns to be prepared by a group of accountants in India.If certain procedures are followed,this outsourcing of tax return preparation is proper.