Question 1

If Lindley requests an extension to file her tax return,the latest she could pay her tax due without penalty is:

Accepted Answer

A)  April 15th.
B)  October 15th.
C)  August 15th.
D)  November 15th.
E)  None of these.F) All of the above
G) A) and B)

Question 2

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return for audit?

Accepted Answer

A)  DIF System.
B)  Deduction Detective.
C)  Document perfection.
D)  Information matching.
E)  None of these.F) A) and B)
G) A) and E)

Question 3

Closed facts are especially conducive to tax planning.

Accepted Answer

A) True 
 B)False

Question 4

A tax practitioner can avoid IRS penalty relating to a tax return position:

Accepted Answer

A)  only if the position has a more likely than not chance of being sustained by the IRS or courts.
B)  if the position has a realistic possibility of being sustained by the IRS or courts.
C)  if there is not substantial authority to support the position.
D)  if the position has a reasonable basis and is disclosed on the tax return.
E)  None of these.F) C) and D)
G) A) and E)

Question 5

Jaime recently found a "favorable" trial level court opinion directly on point for her tax question.Which trial level court would she prefer to have issued the opinion?

Accepted Answer

A)  Tax Court
B)  District Court
C)  Circuit Court
D)  Divorce Court
E)  None of theseF) C) and E)
G) A) and B)

Question 6

Office examinations are the most common type of IRS audit.

Accepted Answer

A) True 
 B)False

Question 7

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income.What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Accepted Answer

There are serious ramifications of commi...

Question 8

According to Statement on Standards for Tax Services No.1,a tax practitioner can recommend a tax return position:

Accepted Answer

A)  if the position is frivolous and disclosed on the tax return.
B)  if the position complies with the standards imposed by the applicable tax authority.
C)  only if the position meets the "more likely than not" standard.
D)  only if the position meets the "clear and convincing evidence" standard.
E)  None of these.F) C) and E)
G) A) and B)

Question 9

Allen filed his 2013 tax return on May 15th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Accepted Answer

A)  May 15th,2016.
B)  April 15th,2016.
C)  May 15th,2017.
D)  April 15th,2017.
E)  None of thesE.Because Allen underreported his gross income by 30 percent,the SOL ends six years from the later of (1)  the date the tax return was filed or (2)  the tax return's original due date.F) C) and D)
G) A) and C)

Question 10

Generally,code sections are arranged (grouped together)  :

Accepted Answer

A)  chronologically
B)  by topic
C)  randomly
D)  by length
E)  None of theseF) A) and B)
G) A) and C)

Question 11

Which of the following is not considered a primary authority?

Accepted Answer

A)  Tax Court case
B)  Regulation
C)  Revenue Ruling
D)  Tax service
E)  None of these.F) A) and D)
G) A) and E)

Question 12

If a taxpayer is due a refund,she does not have to file a tax return.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following courts is the only court that provides for a jury trial?

Accepted Answer

A)  Tax Court.
B)  U.S.Court of Federal Claims.
C)  U.S.District Court.
D)  U.S.Circuit Court of Appeals.
E)  None of these.F) C) and D)
G) C) and E)

Question 14

For which of the following tax violations is a civil penalty not imposed on taxpayers?

Accepted Answer

A)  failure to file a tax return.
B)  failure to pay tax owed.
C)  fraud.
D)  failure to make estimated tax payments.
E)  None of these.F) A) and D)
G) B) and E)

Question 15

The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S.District Court to hear the case.

Accepted Answer

A) True 
 B)False

Question 16

Of the two basic types of tax services,beginning tax researchers often prefer topical tax services.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following types of tax services are arranged by code section?

Accepted Answer

A)  legal tax service.
B)  annotated tax service.
C)  professional tax service.
D)  topical tax service.
E)  None of these.F) C) and D)
G) A) and D)

Question 18

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Accepted Answer

A) True 
 B)False

Exam 2: Tax Compliance, the Irs, and Tax Authorities

Of the two basic types of tax services,beginning tax researchers often prefer topical tax services.

Correct Answer
verified

Generally,code sections are arranged (grouped together) :

Correct Answer
verified

If a taxpayer is due a refund,she does not have to file a tax return.

Correct Answer
verified

Which of the following is not considered a primary authority?

Correct Answer
verified

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Correct Answer
verified

Jaime recently found a "favorable" trial level court opinion directly on point for her tax question.Which trial level court would she prefer to have issued the opinion?

Correct Answer
verified

Closed facts are especially conducive to tax planning.

Correct Answer
verified

Office examinations are the most common type of IRS audit.

Correct Answer
verified

If Lindley requests an extension to file her tax return,the latest she could pay her tax due without penalty is:

Correct Answer
verified

A tax practitioner can avoid IRS penalty relating to a tax return position:

Correct Answer
verified

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return for audit?

Correct Answer
verified

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income.What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Correct Answer
verified
There are serious ramifications of commi...
View Answer

Allen filed his 2013 tax return on May 15^th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Correct Answer
verified

Which of the following types of tax services are arranged by code section?

Correct Answer
verified

According to Statement on Standards for Tax Services No.1,a tax practitioner can recommend a tax return position:

Correct Answer
verified

Which of the following courts is the only court that provides for a jury trial?

Correct Answer
verified

For which of the following tax violations is a civil penalty not imposed on taxpayers?

Correct Answer
verified

The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S.District Court to hear the case.

Correct Answer
verified

Exam 2: Tax Compliance, the Irs, and Tax Authorities

Of the two basic types of tax services,beginning tax researchers often prefer topical tax services.

Correct AnswerverifiedShow Answer

Generally,code sections are arranged (grouped together) :

Correct AnswerverifiedShow Answer

If a taxpayer is due a refund,she does not have to file a tax return.

Correct AnswerverifiedShow Answer

Which of the following is not considered a primary authority?

Correct AnswerverifiedShow Answer

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Correct AnswerverifiedShow Answer

Jaime recently found a "favorable" trial level court opinion directly on point for her tax question.Which trial level court would she prefer to have issued the opinion?

Correct AnswerverifiedShow Answer

Closed facts are especially conducive to tax planning.

Correct AnswerverifiedShow Answer

Office examinations are the most common type of IRS audit.

Correct AnswerverifiedShow Answer

If Lindley requests an extension to file her tax return,the latest she could pay her tax due without penalty is:

Correct AnswerverifiedShow Answer

A tax practitioner can avoid IRS penalty relating to a tax return position:

Correct AnswerverifiedShow Answer

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return for audit?

Correct AnswerverifiedShow Answer

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income.What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Correct AnswerverifiedThere are serious ramifications of commi...View AnswerShow Answer

Allen filed his 2013 tax return on May 15th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Correct AnswerverifiedShow Answer

Which of the following types of tax services are arranged by code section?

Correct AnswerverifiedShow Answer

According to Statement on Standards for Tax Services No.1,a tax practitioner can recommend a tax return position:

Correct AnswerverifiedShow Answer

Which of the following courts is the only court that provides for a jury trial?

Correct AnswerverifiedShow Answer

For which of the following tax violations is a civil penalty not imposed on taxpayers?

Correct AnswerverifiedShow Answer

The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S.District Court to hear the case.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
There are serious ramifications of commi...
View Answer

Allen filed his 2013 tax return on May 15^th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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