Question 1

Linwell underpaid his taxes by $250,000. Portions of the underpayment were attributable to negligence ($210,000) and to civil fraud ($40,000). Compute the total penalties incurred.

Accepted Answer

If the underpayment is partial...

Question 2

In the case of bad debts and worthless securities, the statute of limitations on claims for refund is three years.

Accepted Answer

A) True 
 B)False

Question 3

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

Accepted Answer

A) True 
 B)False

Question 4

A negligence penalty is assessed when the taxpayer is found to have not made a reasonable attempt to comply with the tax law.

Accepted Answer

A) True 
 B)False

Question 5

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Substantial understatement of a tax.

Accepted Answer

A)  Taxpayer penalty
B)  Tax preparer penalty
C)  Appraiser's penaltyD) A) and C)
E) A) and B)

Question 6

Maria's AGI last year was $95,000. To avoid a penalty, her estimated tax payments and withholdings for this year must equal the lesser of ____________________ percent of last year's taxes or ____________________ percent of this year's taxes.

Accepted Answer

100, 90
on...

Question 7

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter.
-Failure to file a tax return.

Accepted Answer

A)  Taxpayer penalty
B)  Tax preparer penalty
C)  Appraiser's penaltyD) B) and C)
E) All of the above

Question 8

The Statements on Standards for Tax Services apply to members of the AICPA, a state bar association, and all Enrolled Agents.

Accepted Answer

A) True 
 B)False

Question 9

The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The Statements on Standards for Tax Services are issued by the:

Accepted Answer

A)   IRS.
B)   AICPA.
C)   ABA.
D)   SEC.E) B) and C)
F) A) and D)

Question 12

According to the IRS, the annual "Tax Gap" totals about $ billion.

Accepted Answer

The answer of According to the IRS, the annual "Tax...

Exam 26: Tax Practice and Ethics

Linwell underpaid his taxes by $250,000. Portions of the underpayment were attributable to negligence ($210,000) and to civil fraud ($40,000). Compute the total penalties incurred.

Correct Answer
verified
If the underpayment is partial...
View Answer

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Substantial understatement of a tax.

Correct Answer
verified

Maria's AGI last year was $95,000. To avoid a penalty, her estimated tax payments and withholdings for this year must equal the lesser of percent of last year's taxes or percent of this year's taxes.

Correct Answer
verified
100, 90
on...
View Answer

A negligence penalty is assessed when the taxpayer is found to have not made a reasonable attempt to comply with the tax law.

Correct Answer
verified

The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.

Correct Answer
verified

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to file a tax return.

Correct Answer
verified

In the case of bad debts and worthless securities, the statute of limitations on claims for refund is three years.

Correct Answer
verified

The Statements on Standards for Tax Services apply to members of the AICPA, a state bar association, and all Enrolled Agents.

Correct Answer
verified

The Statements on Standards for Tax Services are issued by the:

Correct Answer
verified

According to the IRS, the annual "Tax Gap" totals about $ billion.

Correct Answer
verified

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

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

Exam 26: Tax Practice and Ethics

Linwell underpaid his taxes by $250,000. Portions of the underpayment were attributable to negligence ($210,000) and to civil fraud ($40,000). Compute the total penalties incurred.

Correct AnswerverifiedIf the underpayment is partial...View AnswerShow Answer

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Substantial understatement of a tax.

Correct AnswerverifiedShow Answer

Maria's AGI last year was $95,000. To avoid a penalty, her estimated tax payments and withholdings for this year must equal the lesser of ____________________ percent of last year's taxes or ____________________ percent of this year's taxes.

Correct Answerverified100, 90on...View AnswerShow Answer

A negligence penalty is assessed when the taxpayer is found to have not made a reasonable attempt to comply with the tax law.

Correct AnswerverifiedShow Answer

The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.

Correct AnswerverifiedShow Answer

Match each of the following tax penalties with the type of tax penalty as specified by the Code. A letter can be used more than once. The correct solution may include more than one letter. -Failure to file a tax return.

Correct AnswerverifiedShow Answer

In the case of bad debts and worthless securities, the statute of limitations on claims for refund is three years.

Correct AnswerverifiedShow Answer

The Statements on Standards for Tax Services apply to members of the AICPA, a state bar association, and all Enrolled Agents.

Correct AnswerverifiedShow Answer

The Statements on Standards for Tax Services are issued by the:

Correct AnswerverifiedShow Answer

According to the IRS, the annual "Tax Gap" totals about $ billion.

Correct AnswerverifiedShow Answer

IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.

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

Correct Answer
verified
If the underpayment is partial...
View Answer

Correct Answer
verified

Maria's AGI last year was $95,000. To avoid a penalty, her estimated tax payments and withholdings for this year must equal the lesser of percent of last year's taxes or percent of this year's taxes.

Correct Answer
verified
100, 90
on...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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