Question 1

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Accepted Answer

A) True 
 B)False

Question 2

Taxes levied by all states include:

Accepted Answer

A)  Tobacco excise tax. 
B)  Individual income tax. 
C)  Inheritance tax. 
D)  General sales tax. 
E)  None of these. 
A)  Tobacco excise tax. 
B)  Individual income tax. 
C)  Inheritance tax. 
D)  General sales tax. 
E)  None of these.

Question 3

Using the choices provided below, show the justification for each provision of the tax law listed.
-A small business corporation can elect to avoid the corporate income tax.

Accepted Answer

A) Economic considerations 
B) Social considerations 
C) Equity considerations 
D) Both a. and b. 
A) Economic considerations 
B) Social considerations 
C) Equity considerations 
D) Both a. and b.

Question 4

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Income tax amnesty

Accepted Answer

A) Deferral of gains from involuntary conversions 
B) Carryforward of net operating losses 
C) "No change" is one possible result 
D) State income tax applied to visiting nonresident 
E) IRS special agent
F)Undoing the "piggyback" result
G)Ideal budget goal as to new tax legislation
H)Every state that has a general sales tax has one
I)Imposed by all states and the Federal government
J)Imposed by some states but not the Federal government
K)Imposed only by the Federal government
L)No correct match provided 
A) Deferral of gains from involuntary conversions 
B) Carryforward of net operating losses 
C) "No change" is one possible result 
D) State income tax applied to visiting nonresident 
E) IRS special agent
F)Undoing the "piggyback" result
G)Ideal budget goal as to new tax legislation
H)Every state that has a general sales tax has one
I)Imposed by all states and the Federal government
J)Imposed by some states but not the Federal government
K)Imposed only by the Federal government
L)No correct match provided

Question 5

For individual taxpayers, the interest rate for income tax refunds (overpayments) is the same as that applicable to assessments (underpayments).

Accepted Answer

A) True 
 B)False

Question 6

Using the choices provided below, show the justification for each provision of the tax law listed.
-A bribe to the local sheriff, although business related, is not deductible.

Accepted Answer

A) Economic considerations 
B) Social considerations 
C) Equity considerations 
D) Both a. and b. 
A) Economic considerations 
B) Social considerations 
C) Equity considerations 
D) Both a. and b.

Question 7

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

Accepted Answer

A)  A resident dies and leaves his farm to his church. 
B)  A large property owner issues a conservation easement as to some of her land. 
C)  A tax holiday issued 10 years ago has expired. 
D)  A bankrupt motel is acquired by the Red Cross and is to be used to provide housing for homeless persons. 
E)  None of these. 
A)  A resident dies and leaves his farm to his church. 
B)  A large property owner issues a conservation easement as to some of her land. 
C)  A tax holiday issued 10 years ago has expired. 
D)  A bankrupt motel is acquired by the Red Cross and is to be used to provide housing for homeless persons. 
E)  None of these.

Question 8

In 1987, Roy leased real estate to Drab Corporation for 20 years. Drab Corporation made significant capital improvements to the property. In 2006, Drab decides not to renew the lease and vacates the property. At that time, the value of the improvements is $800,000. Roy sells the real estate in 2018 for $1,200,000 of which $900,000 is attributable to the improvements. When is Roy taxed on the improvements made by Drab Corporation?

Accepted Answer

Roy is not subject to taxation on the im

Question 9

A characteristic of the fraud penalties is:

Accepted Answer

A)  When negligence and civil fraud apply to a deficiency, the negligence penalty predominates. 
B)  Criminal fraud can result in a fine and a prison sentence. 
C)  The criminal fraud penalty is 75% of the deficiency attributable to the fraud. 
D)  The IRS has the same burden of proof in the case of criminal fraud than with civil fraud. 
E)  None of these. 
A)  When negligence and civil fraud apply to a deficiency, the negligence penalty predominates. 
B)  Criminal fraud can result in a fine and a prison sentence. 
C)  The criminal fraud penalty is 75% of the deficiency attributable to the fraud. 
D)  The IRS has the same burden of proof in the case of criminal fraud than with civil fraud. 
E)  None of these.

Question 10

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

Accepted Answer

A) 3 years from date return is filed 
B) 3 years from due date of return 
C) 20% of underpayment 
D) 5% per month (25% limit) 
E) 0.5% per month (25% limit)
F)Conducted at IRS office
G)Conducted at taxpayer's office
H)6 years
I)45-day grace period allowed to IRS
J)No statute of limitations (period remains open)
K)75% of underpayment
L)No correct match provided 
A) 3 years from date return is filed 
B) 3 years from due date of return 
C) 20% of underpayment 
D) 5% per month (25% limit) 
E) 0.5% per month (25% limit)
F)Conducted at IRS office
G)Conducted at taxpayer's office
H)6 years
I)45-day grace period allowed to IRS
J)No statute of limitations (period remains open)
K)75% of underpayment
L)No correct match provided

Question 11

The proposed flat tax:

Accepted Answer

A)  Would increase the number of deductions available to individuals 
B)  Would not require individuals to file returns. 
C)  Would tax the increment in value as goods move through the production and manufacturing stages to the marketplace. 
D)  Is a type of consumption tax. 
E)  None of these. 
A)  Would increase the number of deductions available to individuals 
B)  Would not require individuals to file returns. 
C)  Would tax the increment in value as goods move through the production and manufacturing stages to the marketplace. 
D)  Is a type of consumption tax. 
E)  None of these.

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Taxes levied by all states include:

Using the choices provided below, show the justification for each provision of the tax law listed. -A small business corporation can elect to avoid the corporate income tax.

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Income tax amnesty

For individual taxpayers, the interest rate for income tax refunds (overpayments) is the same as that applicable to assessments (underpayments).

Using the choices provided below, show the justification for each provision of the tax law listed. -A bribe to the local sheriff, although business related, is not deductible.

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

A characteristic of the fraud penalties is:

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

The proposed flat tax:

Working with the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: In General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Taxing Business Income

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

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

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Taxes levied by all states include:

Using the choices provided below, show the justification for each provision of the tax law listed. -A small business corporation can elect to avoid the corporate income tax.

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Income tax amnesty

For individual taxpayers, the interest rate for income tax refunds (overpayments) is the same as that applicable to assessments (underpayments).

Using the choices provided below, show the justification for each provision of the tax law listed. -A bribe to the local sheriff, although business related, is not deductible.

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

A characteristic of the fraud penalties is:

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

The proposed flat tax:

Working with the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: In General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Taxing Business Income

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters