FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

Tina has a very complex tax return and it looks like she will not be able to file her tax return by its due date. When is her tax return due? What are Tina's options for paying her tax due and filing her tax return this year? What are the consequences if Tina does not file or pay her tax timely? Be specific.

Correct Answer

verified

Tina's tax return is due on April 15ᵗʰ. ...

View Answer

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

A taxpayer can avoid a substantial understatement of tax penalty:

A) if the position is frivolous and disclosed on the tax return.
B) if the position has a realistic possibility of being sustained by the IRS or courts.
C) if the position is not frivolous and disclosed on the tax return.
D) if the position has a reasonable basis and is disclosed on the tax return.
E) None of the choices are correct.

F) A) and D)
G) B) and E)

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

A client has recently learned of a proposed tax bill that would increase the tax rates on investment gains by 5 percent. The President does not support this increase. Please describe for your client the process by which new tax legislation is created and how the President's disapproval may influence the enactment of the bill.

Which of the following is not considered a primary authority?

Bill filed his 2018 tax return on March 15ᵗʰ, 2019. The statute of limitations for IRS assessment on Bill's 2018 tax return should end:

For the following tax returns, identify which of the three audit types will most likely be utilized. a. The IRS selected Don's return for audit because of his high itemized deductions. The IRS would like documentation of these deductions. b. Large Public Corporation is a very large publicly traded corporation. It is involved in many complex transactions that have significant tax ramifications. c. George and Barbara operate a small business out of their home. The IRS has identified a couple of issues that may relate to their business. d. The IRS selected Bill and Hillary's tax return for review because of some of their investment sales. They would like a better understanding of the transactions and parties involved.

Campbell was researching a tax issue and found a favorable Tax Court opinion and an IRC Code Section that appears to answer the question. Is she finished with the research process? If so, why? If not, what must she do?

Office examinations are the most common type of IRS audit.

Temporary Regulations have more authoritative weight than revenue rulings.

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

The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree to a proposed IRS adjustment on the taxpayer's income tax return.

The IRS DIF system checks each tax return for mathematical mistakes and errors.

For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.

Which of the following is not a common tool used in conducting tax research?

Hong, an introductory tax student, is beginning his first research project. He has a complete understanding of the relevant facts for his project and has identified the initial research questions. He is now ready to begin using a tax service to identify relevant authorities. What are some suggestions for him on how to use tax services to identify relevant authorities?

The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed.

Ramon's tax return was randomly selected for audit. Which IRS program likely selected Ramon's return for audit?

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

Which of the following has the highest authoritative weight?

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?