Question 1

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

Accepted Answer

A) True 
 B)False

Question 2

The Federal income tax is based on a pay-as-you-go system and has become a "mass tax." Explain this statement.

Accepted Answer

The answer of The Federal income tax is based on...

Question 3

In late June 2018, Art is audited by the state and a large deficiency is assessed. In November of the same year, his Federal income tax return is audited by the IRS. What has probably happened?

Accepted Answer

The answer of In late June 2018, Art is audited...

Question 4

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.

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

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

The Federal income tax is based on a pay-as-you-go system and has become a "mass tax." Explain this statement.

In late June 2018, Art is audited by the state and a large deficiency is assessed. In November of the same year, his Federal income tax return is audited by the IRS. What has probably happened?

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