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

Using the following choices, show the justification for each provision of the tax law listed. a. Economic considerations b. Social considerations c. Equity considerations d. Both a. and b. -Tax on transfers at death (inheritance type)

Match the statements that relate to each other.Note: Some choices may be used more than once. -Late filing and statute limitations (deficiency situations)

Which, if any, of the following transactions will increase a taxing jurisdiction's revenue from the ad valorem tax imposed on real estate?

The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith's canon (principle) of certainty.

Taxes not imposed by the Federal government include:

Using the following choices, show the justification for each provision of the tax law listed. a. Economic considerations b. Social considerations c. Equity considerations d. Both a. and b. -Decoupling

Before proposing that the state's sales tax be expanded to include food, a legislator should ask whether:

Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.

Using the following choices, show the justification for each provision of the tax law listed. a. Economic considerations b. Social considerations c. Equity considerations d. Both a. and b. -Mitigation of the annual accounting period concept

The Federal excise tax on cigarettes is an example of a proportional tax.

A rationale for the installment sale method tax rule is:

Match the statements that relate to each other.Note: Some choices may be used more than once. -Failure to file penalty

Which, if any, of the following statements best describes the history of the Federal income tax?

A characteristic of FUTA is that:

Taxes levied by all states include:

"Bracket creep" is avoided by:

Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.The 20% negligence penalty will apply to $25,000.

As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the amount of the standard deduction allowed to individual taxpayers.

In 2019, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000.José has not made a taxable gift.

Using the following choices, show the justification for each provision of the tax law listed. a. Economic considerations b. Social considerations c. Equity considerations d. Both a. and b. -Tax credits for home improvements that conserve energy.