Question 1

The proposed flat tax:

Accepted Answer

A)  Would eliminate the income tax. 
B)  Would simplify the income tax. 
C)  Would tax the increment in value as goods move through the production and manufacturing stages to the marketplace. 
D)  Is a tax on consumption. 
E)  None of the above. 
A)  Would eliminate the income tax. 
B)  Would simplify the income tax. 
C)  Would tax the increment in value as goods move through the production and manufacturing stages to the marketplace. 
D)  Is a tax on consumption. 
E)  None of the above.

Question 2

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

Accepted Answer

A) True 
 B)False

Question 3

Which,if any,of the following taxes are proportional (rather than progressive)?

Accepted Answer

A)  Federal corporate income tax. 
B)  Federal employment taxes (i.e., FICA, FUT
A) . 
C)  Federal estate tax. 
D)  Federal gift tax. 
E)  All of the above. 
A)  Federal corporate income tax. 
B)  Federal employment taxes (i.e., FICA, FUT
A) . 
C)  Federal estate tax. 
D)  Federal gift tax. 
E)  All of the above.

Question 4

The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.

Accepted Answer

A) True 
 B)False

Question 5

If an income tax return is not filed by a taxpayer,there is no statute of limitations on assessments of tax by the IRS.

Accepted Answer

A) True 
 B)False

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

When interest is charged on a deficiency,any part of a month counts as a full month.

Accepted Answer

A) True 
 B)False

Question 8

Brayden files his Federal income tax return by April 15,but does not pay the tax.Although he expects to pay interest on the large amount of tax he still owes,he feels that the timely filing has avoided any penalties.Is Brayden's assumption correct?

Accepted Answer

Although Brayden has avoided t

Question 9

The Federal estate and gift taxes are examples of progressive taxes.

Accepted Answer

A) True 
 B)False

Question 10

Federal excise taxes that are no longer imposed include:

Accepted Answer

A)  Tax on air travel. 
B)  Tax on wagering. 
C)  Tax on the manufacture of sporting equipment. 
D)  Tax on theatre admissions. 
E)  None of the above. 
A)  Tax on air travel. 
B)  Tax on wagering. 
C)  Tax on the manufacture of sporting equipment. 
D)  Tax on theatre admissions. 
E)  None of the above.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A fixture will be subject to the ad valorem tax on realty rather than the ad valorem tax on personalty.

Accepted Answer

A) True 
 B)False

Question 13

Ava,an estate planner,is advising her wealthier clients to make any large gifts to family members before 2013.Why?

Accepted Answer

Under existing law,the exemption equival

Question 14

A major disadvantage of a flat tax type of income tax is its complexity.

Accepted Answer

A) True 
 B)False

Question 15

The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  It existed during the Civil War. 
B)  The Federal income tax on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. 
C)  The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. 
D)  Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. 
E)  None of the above. 
A)  It existed during the Civil War. 
B)  The Federal income tax on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. 
C)  The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. 
D)  Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. 
E)  None of the above.

Question 19

Under state amnesty programs,all delinquent and unpaid income taxes are forgiven.

Accepted Answer

A) True 
 B)False

Question 20

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Accepted Answer

A) True 
 B)False

The proposed flat tax:

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

Which,if any,of the following taxes are proportional (rather than progressive)?

The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.

If an income tax return is not filed by a taxpayer,there is no statute of limitations on assessments of tax by the IRS.

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.

When interest is charged on a deficiency,any part of a month counts as a full month.

Brayden files his Federal income tax return by April 15,but does not pay the tax.Although he expects to pay interest on the large amount of tax he still owes,he feels that the timely filing has avoided any penalties.Is Brayden's assumption correct?

The Federal estate and gift taxes are examples of progressive taxes.

Federal excise taxes that are no longer imposed include:

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

A fixture will be subject to the ad valorem tax on realty rather than the ad valorem tax on personalty.

Ava,an estate planner,is advising her wealthier clients to make any large gifts to family members before 2013.Why?

A major disadvantage of a flat tax type of income tax is its complexity.

The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S.

Taxes levied by all states include:

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

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

Under state amnesty programs,all delinquent and unpaid income taxes are forgiven.

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Working With the Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

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

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

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

The proposed flat tax:

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

Which,if any,of the following taxes are proportional (rather than progressive)?

The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.

If an income tax return is not filed by a taxpayer,there is no statute of limitations on assessments of tax by the IRS.

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.

When interest is charged on a deficiency,any part of a month counts as a full month.

Brayden files his Federal income tax return by April 15,but does not pay the tax.Although he expects to pay interest on the large amount of tax he still owes,he feels that the timely filing has avoided any penalties.Is Brayden's assumption correct?

The Federal estate and gift taxes are examples of progressive taxes.

Federal excise taxes that are no longer imposed include:

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

A fixture will be subject to the ad valorem tax on realty rather than the ad valorem tax on personalty.

Ava,an estate planner,is advising her wealthier clients to make any large gifts to family members before 2013.Why?

A major disadvantage of a flat tax type of income tax is its complexity.

The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S.

Taxes levied by all states include:

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

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

Under state amnesty programs,all delinquent and unpaid income taxes are forgiven.

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Working With the Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

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

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters