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

Max (a calendar year taxpayer) donates a painting to a local art museum (a qualified charity) .The painting cost Max $2,000 ten years ago and,according to one of Max's friends (an amateur artist) ,is worth $50,000.On his income tax return,Max deducts $50,000 as a charitable contribution.Upon later audit by the IRS,it is determined that the true value of the painting was $30,000.Assuming that Max is subject to a 30% marginal income tax rate,his penalty for overvaluation is:

Accepted Answer

A)  $0.
B)  $1,200.
C)  $2,400.
D)  $5,000 (maximum penalty) .
E)  $6,000.F) C) and E)
G) A) and D)

Question 3

Anthony,an individual calendar year taxpayer,incurred the following transactions.

Assuming that any error in timely reporting these amounts was inadvertent,how much omission from gross income would be required before the six-year statute of limitations would apply?

Accepted Answer

A)  The six-year rule cannot apply here.
B)  More than $115,000.
C)  More than $137,500.
D)  More than $212,500.E) None of the above
F) B) and D)

Question 4

Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS.

Accepted Answer

These circumstances ...

Question 5

The Chief Counsel of the IRS is appointed by the:

Accepted Answer

A)  Secretary of the Treasury Department.
B)  U.S.Senate.
C)  U.S.House of Representatives.
D)  U.S.President.
E)  American Bar Association President.F) None of the above
G) B) and D)

Question 6

The IRS uses document matching programs to keep the audit rate low.

Accepted Answer

A) True 
 B)False

Question 7

The IRS targets high-income individuals for an audit rate that is about double that of the general populace.

Accepted Answer

A) True 
 B)False

Question 8

Yin-Li is the preparer of the Form 1120 for Cloves Corporation.On the return,Cloves claimed a deduction that the IRS later disallowed on audit.Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.

Accepted Answer

The potential § 6694 penalty does not de...

Question 9

The AICPA's Statements on Standards for Tax Services are advisory,not mandatory,on its members.

Accepted Answer

A) True 
 B)False

Question 10

In the context of civil fraud,the burden of proof is on the IRS to show by a "preponderance of the evidence" that the taxpayer had a specific intent to evade a tax.

Accepted Answer

A) True 
 B)False

Question 11

Compute the overvaluation penalty for each of the following independent cases involving the taxpayer's reporting of the fair market value of charitable contribution property.In each case,assume a marginal income tax rate of 35%.

Accepted Answer

The answer of Compute the overvaluation penalty for each of...

Question 12

Mickey,a calendar year taxpayer,was not required to file a 2009 Federal income tax return.During 2010,his AGI is $120,000 and his tax liability is $20,000.To avoid a penalty for tax underpayments for 2010,Mickey must make aggregate estimated tax payments of at least:

Accepted Answer

A)  $0.
B)  $1,000 (minimum amount) .
C)  $18,000.
D)  $20,000.E) All of the above
F) C) and D)

Exam 17: Tax Practice and Ethics

In the context of civil fraud,the burden of proof is on the IRS to show by a "preponderance of the evidence" that the taxpayer had a specific intent to evade a tax.

Correct Answer
verified

Compute the overvaluation penalty for each of the following independent cases involving the taxpayer's reporting of the fair market value of charitable contribution property.In each case,assume a marginal income tax rate of 35%.

Correct Answer
verified

Yin-Li is the preparer of the Form 1120 for Cloves Corporation.On the return,Cloves claimed a deduction that the IRS later disallowed on audit.Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.

Correct Answer
verified
The potential § 6694 penalty does not de...
View Answer

The IRS uses document matching programs to keep the audit rate low.

Correct Answer
verified

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

The Chief Counsel of the IRS is appointed by the:

Correct Answer
verified

The IRS targets high-income individuals for an audit rate that is about double that of the general populace.

Correct Answer
verified

Mickey,a calendar year taxpayer,was not required to file a 2009 Federal income tax return.During 2010,his AGI is $120,000 and his tax liability is $20,000.To avoid a penalty for tax underpayments for 2010,Mickey must make aggregate estimated tax payments of at least:

Correct Answer
verified

Correct Answer
verified

Anthony,an individual calendar year taxpayer,incurred the following transactions. Assuming that any error in timely reporting these amounts was inadvertent,how much omission from gross income would be required before the six-year statute of limitations would apply?

Correct Answer
verified

Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS.

Correct Answer
verified
These circumstances ...
View Answer

The AICPA's Statements on Standards for Tax Services are advisory,not mandatory,on its members.

Correct Answer
verified

Exam 17: Tax Practice and Ethics

In the context of civil fraud,the burden of proof is on the IRS to show by a "preponderance of the evidence" that the taxpayer had a specific intent to evade a tax.

Correct AnswerverifiedShow Answer

Compute the overvaluation penalty for each of the following independent cases involving the taxpayer's reporting of the fair market value of charitable contribution property.In each case,assume a marginal income tax rate of 35%.

Correct AnswerverifiedShow Answer

Yin-Li is the preparer of the Form 1120 for Cloves Corporation.On the return,Cloves claimed a deduction that the IRS later disallowed on audit.Compute the tax preparer penalty that could be assessed against Yin-Li in each of the following independent situations.

Correct AnswerverifiedThe potential § 6694 penalty does not de...View AnswerShow Answer

The IRS uses document matching programs to keep the audit rate low.

Correct AnswerverifiedShow 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

The Chief Counsel of the IRS is appointed by the:

Correct AnswerverifiedShow Answer

The IRS targets high-income individuals for an audit rate that is about double that of the general populace.

Correct AnswerverifiedShow Answer

Mickey,a calendar year taxpayer,was not required to file a 2009 Federal income tax return.During 2010,his AGI is $120,000 and his tax liability is $20,000.To avoid a penalty for tax underpayments for 2010,Mickey must make aggregate estimated tax payments of at least:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Anthony,an individual calendar year taxpayer,incurred the following transactions. Assuming that any error in timely reporting these amounts was inadvertent,how much omission from gross income would be required before the six-year statute of limitations would apply?

Correct AnswerverifiedShow Answer

Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS.

Correct AnswerverifiedThese circumstances ...View AnswerShow Answer

The AICPA's Statements on Standards for Tax Services are advisory,not mandatory,on its members.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The potential § 6694 penalty does not de...
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
These circumstances ...
View Answer

Correct Answer
verified