Question 1

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

Accepted Answer

A) True 
 B)False

Question 2

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Accepted Answer

A) True 
 B)False

Question 3

Even though a client refuses to correct an error on a past return,it may be possible for a practitioner to continue to prepare returns for the client.

Accepted Answer

A) True 
 B)False

Question 4

Using the choices provided below,show the justification for each provision of the tax law listed.
-A tax credit for amounts spent to furnish care for children while the parent is at work.

Accepted Answer

A) Economic considerations 
B) Social considerations 
C) Equity considerations

Question 5

Which,if any,of the following is a typical characteristic of an ad valorem tax on personalty?

Accepted Answer

A) Taxpayer compliance is greater for personal use property than for business use property. 
B) The tax on automobiles sometimes considers the age of the vehicle. 
C) Most states impose a tax on intangibles. 
D) The tax on intangibles generates considerable revenue since it is difficult for taxpayers to avoid. 
E) None of these.

Question 6

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

Accepted Answer

A) True 
 B)False

Question 7

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on corporations.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) Deferral of gains from involuntary conversions 
B) Carryback and 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 9

The tax law allows an income tax deduction (or a credit)for foreign income taxes.Explain why.

Accepted Answer

The answer of The tax law allows an income tax...

Question 10

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

Accepted Answer

A) True 
 B)False

Question 11

What is a severance tax? How productive can it be in terms of generating revenue?

Accepted Answer

The answer of What is a severance tax? How productive...

Question 12

If a taxpayer files early (i.e. ,before the due date of the return),the statute of limitations on assessments begins on the date the return is filed.

Accepted Answer

A) True 
 B)False

Question 13

In cases of doubt,courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Accepted Answer

A) True 
 B)False

Question 14

For the negligence penalty to apply,the underpayment must be caused by intentional disregard of rules and regulations without intent to defraud.

Accepted Answer

A) True 
 B)False

Question 15

Match the statements that relate to each other.Note: Some choices may be used more than once or not at all.
-"Pay­as­you­go" (paygo)

Accepted Answer

A) Deferral of gains from involuntary conversions 
B) Carryback and 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

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

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Even though a client refuses to correct an error on a past return,it may be possible for a practitioner to continue to prepare returns for the client.

Using the choices provided below,show the justification for each provision of the tax law listed. -A tax credit for amounts spent to furnish care for children while the parent is at work.

Which,if any,of the following is a typical characteristic of an ad valorem tax on personalty?

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on corporations.

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

The tax law allows an income tax deduction (or a credit)for foreign income taxes.Explain why.

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

What is a severance tax? How productive can it be in terms of generating revenue?

If a taxpayer files early (i.e. ,before the due date of the return),the statute of limitations on assessments begins on the date the return is filed.

In cases of doubt,courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

For the negligence penalty to apply,the underpayment must be caused by intentional disregard of rules and regulations without intent to defraud.

Match the statements that relate to each other.Note: Some choices may be used more than once or not at all. -"Payasyougo" (paygo)

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

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Even though a client refuses to correct an error on a past return,it may be possible for a practitioner to continue to prepare returns for the client.

Using the choices provided below,show the justification for each provision of the tax law listed. -A tax credit for amounts spent to furnish care for children while the parent is at work.

Which,if any,of the following is a typical characteristic of an ad valorem tax on personalty?

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on corporations.

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

The tax law allows an income tax deduction (or a credit)for foreign income taxes.Explain why.

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

What is a severance tax? How productive can it be in terms of generating revenue?

If a taxpayer files early (i.e. ,before the due date of the return),the statute of limitations on assessments begins on the date the return is filed.

In cases of doubt,courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

For the negligence penalty to apply,the underpayment must be caused by intentional disregard of rules and regulations without intent to defraud.

Match the statements that relate to each other.Note: Some choices may be used more than once or not at all. -"Pay­as­you­go" (paygo)

Match the statements that relate to each other.Note: Some choices may be used more than once or not at all. -"Payasyougo" (paygo)