Question 1

In a criminal fraud case, the burden is on the taxpayer to show that he or she was innocent "beyond the shadow of any reasonable doubt."

Accepted Answer

A) True 
 B)False

Question 2

A taxpayer penalty may be waived if there is shown to be reasonable cause for the misstatement on the tax return. The courts have applied this standard strictly. List three or more assertions for a waiver of a taxpayer penalty that courts have found not to constitute reasonable cause. Example: Ignorance of the tax law.

Accepted Answer

Courts have found th...

Question 3

A taxpayer's return might be selected for audit on the basis of the ____________________ score that the IRS computes.

Accepted Answer

The answer of A taxpayer's return might be selected for...

Question 4

Describe the potential outcomes to a party who provides information to the IRS under the informant or whistleblower program.

Accepted Answer

An informant may qualify for a discretio...

Question 5

Concerning a taxpayer's requirement to make quarterly estimated tax payments:

Accepted Answer

A)  An individual must make estimated payments if his or her balance due for the Federal income tax for the year will exceed $1,000.
B)  The due dates of the payments for a calendar-year C corporation are March, June, September, and December 15.
C)  A C corporation must make estimated payments if its Federal income tax liability for the year will exceed $250.
D)  A trust is not required to make estimated payments.E) B) and D)
F) A) and B)

Question 6

Juanita, who is subject to a 35% marginal gift tax rate, made a gift of a sculpture to Bianca, valuing the property at $150,000.The IRS later valued the gift at $300,000.The applicable undervaluation penalty is:

Accepted Answer

A)  $21,000.
B)  $10,500.
C)  $10,000 (maximum penalty) .
D)  $0.E) None of the above
F) C) and D)

Question 7

The general statute of limitations regarding Federal tax returns extends for ____________________ years.It is ____________________ years if a substantial understatement of income is found, and ____________________ years with respect to worthless securities.
or

Accepted Answer

3, 6, 7 th...

Exam 26: Tax Practice and Ethics

Concerning a taxpayer's requirement to make quarterly estimated tax payments:

Correct Answer
verified

Juanita, who is subject to a 35% marginal gift tax rate, made a gift of a sculpture to Bianca, valuing the property at $150,000.The IRS later valued the gift at $300,000.The applicable undervaluation penalty is:

Correct Answer
verified

Describe the potential outcomes to a party who provides information to the IRS under the informant or whistleblower program.

Correct Answer
verified
An informant may qualify for a discretio...
View Answer

In a criminal fraud case, the burden is on the taxpayer to show that he or she was innocent "beyond the shadow of any reasonable doubt."

Correct Answer
verified

A taxpayer's return might be selected for audit on the basis of the ____________________ score that the IRS computes.

Correct Answer
verified

Correct Answer
verified
Courts have found th...
View Answer

The general statute of limitations regarding Federal tax returns extends for years.It is years if a substantial understatement of income is found, and years with respect to worthless securities. or

Correct Answer
verified
3, 6, 7 th...
View Answer

Exam 26: Tax Practice and Ethics

Concerning a taxpayer's requirement to make quarterly estimated tax payments:

Correct AnswerverifiedShow Answer

Juanita, who is subject to a 35% marginal gift tax rate, made a gift of a sculpture to Bianca, valuing the property at $150,000.The IRS later valued the gift at $300,000.The applicable undervaluation penalty is:

Correct AnswerverifiedShow Answer

Describe the potential outcomes to a party who provides information to the IRS under the informant or whistleblower program.

Correct AnswerverifiedAn informant may qualify for a discretio...View AnswerShow Answer

In a criminal fraud case, the burden is on the taxpayer to show that he or she was innocent "beyond the shadow of any reasonable doubt."

Correct AnswerverifiedShow Answer

A taxpayer's return might be selected for audit on the basis of the ____________________ score that the IRS computes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCourts have found th...View AnswerShow Answer

The general statute of limitations regarding Federal tax returns extends for ____________________ years.It is ____________________ years if a substantial understatement of income is found, and ____________________ years with respect to worthless securities. or

Correct Answerverified3, 6, 7 th...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An informant may qualify for a discretio...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Courts have found th...
View Answer

The general statute of limitations regarding Federal tax returns extends for years.It is years if a substantial understatement of income is found, and years with respect to worthless securities. or

Correct Answer
verified
3, 6, 7 th...
View Answer