TB TF Qu.

01-38 (Static) One must consider the economy

criterion...
One must consider the "economy" criterion in evaluating tax systems from both the taxpayer's
and the government's perspective.

True

TB MC Qu. 01-45 (Static) To calculate a tax,...

To calculate a tax, you need to know:

I. the tax base

II. the taxing agency
III. the tax rate
IV. the purpose of the tax

I Y III

TB TF Qu. 01-01 (Static) Taxes influence many types of

business decis...
Taxes influence many types of business decisions but generally do not influence personal
decisions.

FALSE

TB MC Qu. 01-61 (Static) Which of the following is true

regarding real prop...
Which of the following is true regarding real property taxes and personal property taxes?

Real property taxes are generally easier to administer than personal property taxes.
TB MC Qu. 01-82 (Static) Eliminating the current system
of...
Eliminating the current system of withholding income taxes directly from employee paychecks
would:

violate the convenience criterion of federal taxation.

TB MC Qu. 01-60 (Static) Which of the following is true

regarding...
Which of the following is true regarding use taxes?

Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.

TB TF Qu. 01-26 (Static) Self-employment taxes are charged

on self-employme...
Self-employment taxes are charged on self-employment income in addition to any federal
income tax.

TRUE

TB MC Qu. 01-63 (Static) The concept of tax...

The concept of tax sufficiency:

ALL CHOICE

Item 10

2/2 points awarded

Item Scored
Item 10

TB MC Qu. 01-56 (Static) Which of the following...

Which of the following is true?

In terms of effective tax rates, a sales tax can be viewed as a regressive tax.

TB TF Qu. 01-26 (Static) Self-employment taxes are charged

on self-employme...
Self-employment taxes are charged on self-employment income in addition to any federal
income tax.

TRUE

TB TF Qu. 01-17 (Static) The effective tax rate expresses the

taxpayer's to...
The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable
and nontaxable income.

TRUE

TB TF Qu. 01-28 (Static) The estate tax is assessed based on

the fair marke...
The estate tax is assessed based on the fair market values of transfers made during a taxpayer's
life.

FALSE
TB MC Qu. 01-69 (Static) Which of the following is true
regarding tax-advan...
Which of the following is true regarding tax-advantaged assets?

They are often subject to implicit taxes.

TB MC Qu. 01-71 (Static) Employers often withhold federal

income taxes dire...
Employers often withhold federal income taxes directly from workers' paychecks. This is an
example of which principle in practice?

CONVENIENCE

Item 18

2/2 points awarded

Item Scored

Item 18

TB TF Qu. 01-23 (Static) The largest federal tax, in terms of

revenue colle...
The largest federal tax, in terms of revenue collected, is the Social Security tax.

FALSE

TB TF Qu. 01-13 (Static) A flat tax is an example of a...

A flat tax is an example of a graduated tax system.

FALSE
TB MC Qu. 01-46 (Static) Which of the following is not an
example of a grad...
Which of the following is not an example of a graduated tax rate structure?

Proportional tax rate structure

TB TF Qu. 01-14 (Static) The main difficulty in calculating

an income tax i...
The main difficulty in calculating an income tax is determining the correct amount of the tax
base.

TRUE

TB MC Qu. 02-39 (Static) Corporations are required to file

a tax return only...
Corporations are required to file a tax return only if their taxable income is greater than:

None of the choices are correct. Corporations are always required to file a tax return.

TB MC Qu. 02-53 (Static) Which of the following audits is

the least common,...
Which of the following audits is the least common, broadest in scope, and typically most
complex?

FIELD

TB MC Qu. 02-61 (Static) Which of the following is not

considered a secondary...
Which of the following is not considered a secondary authority?
PRIVATE LETTER

TB TF Qu. 02-13 (Static) The "30-day" letter gives the

taxpayer the opportunity...
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.

TRUE

TB TF Qu. 02-03 (Static) If a taxpayer is due a refund, she

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

FALSE

TB MC Qu. 02-63 (Static) Which of the following has the

highest authoritative...
Which of the following has the highest authoritative weight?

LEGISLATIVE

TB MC Qu. 02-64 (Static) Josephine is considering taking a

six-month rotation...
Josephine is considering taking a six-month rotation in Paris for her job. Which type of authority
may be especially helpful in determining the tax consequences of Josephine's job in Paris?

TAX TREATY
TB MC Qu. 02-71 (Static) Which of the following
committees typically initiates...
Which of the following committees typically initiates tax legislation?

House Ways and Means Committee

TB TF Qu. 02-08 (Static) For fraudulent tax returns, the

statute of limitations...
For fraudulent tax returns, the statute of limitations for IRS assessment is 10 years.

FALSE

TB TF Qu. 02-18 (Static) Secondary authorities are official

sources of the...
Secondary authorities are official sources of the tax law with a lesser "weight" than primary
authorities.

FALSE

TB TF Qu. 02-25 (Static) The Internal Revenue Code of

1986 is the name of...
The Internal Revenue Code of 1986 is the name of the current income tax code of the United
States of America.

TRUE

TB TF Qu. 02-19 (Static) Revenue rulings and revenue

procedures are examples...
Revenue rulings and revenue procedures are examples of primary authorities.
TRUE

TB MC Qu. 02-70 (Static) Jaime recently found a

"favorable" trial-level court...
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?

TAX COURT

TB MC Qu. 02-37 (Static) If Paula requests an extension to

file her...
If Paula requests an extension to file her individual tax return in a timely manner, the latest she
could file her return without a failure-to-file penalty is:

October 15th.

TB MC Qu. 02-45 (Static) Allen filed his 2021 tax return...

Allen filed his 2021 tax return on May 15th, 2022, 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 2021 tax return should end:

 None of the choices are correct. Correct

Explanation
Because Allen underreported his gross income by 30 percent, the statute of limitations (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.

TB MC Qu. 02-66 (Static) Which of the following has the

lowest authoritative...
Which of the following has the lowest authoritative weight?

Private letter ruling

TB MC Qu. 02-49 (Static) Leslie made a mathematical
mistake in computing her...
Leslie made a mathematical mistake in computing her tax liability. Which audit program will
likely catch Leslie's mistake?

DOCUMENT PERFECTION

TB MC Qu. 02-69 (Static) Princess, who resides in the 2nd

Circuit, recently...
Princess, who resides in the 2nd Circuit, recently found a circuit court case that is favorable to her
income tax research question. Which of the following circuits would she prefer to have issued
the opinion?

2nd Circuit or the Federal Circuit

TB MC Qu. 02-59 (Static) Rowanda could not settle her tax

dispute with the...
Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to
litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda
should litigate in the:

TAX COURT

TB MC Qu. 02-60 (Static) Which of the following is not

considered a primary...
Which of the following is not considered a primary authority?

TAX SERVICE

TB TF Qu. 02-11 (Static) Office examinations are the most

common type of...
Office examinations are the most common type of IRS audit.

FALSE
TB TF Qu. 02-17 (Static) If a taxpayer loses a case at the
circuit court...
If a taxpayer loses a case at the circuit court level, he is granted an automatic appeal hearing with
the Supreme Court.

FALSE

TB TF Qu. 02-12 (Static) The three basic types of IRS

examinations are computer...
The three basic types of IRS examinations are computer exams, office exams, and business
exams.

FALSE

TB MC Qu. 02-52 (Static) Which of the following audits is

the most common...
Which of the following audits is the most common and typically less comprehensive?

CORRESPONDENSE

TB TF Qu. 02-24 (Static) An acquiescence indicates that the

IRS lost a court...
An acquiescence indicates that the IRS lost a court case and that it has decided to follow the
court's ruling in the future.

TRUE

TB TF Qu. 04-18 (Static) Tax credits reduce taxable income

dollar for...
Tax credits reduce taxable income dollar for dollar.

FALSE
TB TF Qu. 04-27 (Static) An individual may never be
considered as both...
An individual may never be considered as both a qualifying relative and a qualifying child of the
same taxpayer.

TRUE

TB TF Qu. 04-03 (Static) The standard deduction amount

for married filing...
The standard deduction amount for married filing separately taxpayers (MFS) is less than the
standard deduction amount for married filing jointly taxpayers.

TRUE

TB MC Qu. 04-103 (Static) For purposes of determining

filing status...
For purposes of determining filing status, which of the following is not a requirement for a
married taxpayer to be treated as unmarried at the end of the year?

The spouse does not live in the taxpayer's home at all during the year.

TB TF Qu. 04-21 (Static) Taxpayers are allowed to claim a

child tax...
Taxpayers are allowed to claim a child tax credit for their qualifying children and certain other
qualifying dependents.

TRUE

TB TF Qu. 04-05 (Static) From AGI deductions are...

From AGI deductions are generally more valuable to taxpayers than for AGI deductions.

FALSE

TB TF Qu. 04-12 (Static) A personal automobile is a capital

asset.
A personal automobile is a capital asset.

TRUE

TB TF Qu. 04-31 (Static) When determining whether a child

meets the...
When determining whether a child meets the qualifying child support test for the child's
grandparents, scholarships earned by the child do not count as self-support provided by the child.

FALSE

TB MC Qu. 04-64 (Static) All of the following are for AGI...

All of the following are for AGI deductions except:

charitable contributions.

TB MC Qu. 04-62 (Static) Which of the following statements

regarding...
Which of the following statements regarding tax deductions is false?

From AGI deductions tend to be associated with business activities while for AGI deductions
tend to be associated with personal activities.

TB TF Qu. 04-09 (Static) Itemized deductions and the

standard deduction...
Itemized deductions and the standard deduction are deductions from AGI but the deduction for
qualified business income is a deduction for AGI.

FALSE

TB TF Qu. 04-11 (Static) Taxpayers are allowed to deduct a

specific...
Taxpayers are allowed to deduct a specific amount for each of their dependents.

FALSE
TB MC Qu. 04-101 (Static) In April of year 1, Martin left his
wife, Marianne...
In April of Year 1, Martin left his wife, Marianne. While the couple was apart, they were not
legally divorced. Marianne found herself having to financially provide for the couple's only child
(who qualifies as Marianne's dependent) and to pay all the costs of maintaining the household.
When Marianne filed her tax return for Year 1, she filed a return separate from Martin. What is
Marianne's most favorable filing status for Year 1?

HEAD OF HOUSE

TB TF Qu. 04-07 (Static) For AGI deductions are...

For AGI deductions are commonly referred to as deductions "below the line."

FALSE

TB TF Qu. 04-47 (Static) Taxpayers who file as qualifying

widows...
Taxpayers who file as qualifying widows/widowers use a different tax rate schedule than
taxpayers who are married filing jointly for tax purposes.

FALSE

TB TF Qu. 04-53 (Static) In certain circumstances, a

married taxpayer...
In certain circumstances, a married taxpayer who does not file a joint tax return with her spouse
may qualify for the head of household filing status.

TRUE

TB TF Qu. 04-16 (Static) Certain types of income are taxed

at a lower...
Certain types of income are taxed at a lower rate than ordinary income.

TRUE
TB MC Qu. 04-72 (Static) Which of the following statements
regarding...
Which of the following statements regarding tax credits is true?

Tax credits reduce taxes due dollar for dollar.

TB MC Qu. 04-73 (Static) Jamison's gross tax liability is...

Jamison's gross tax liability is $7,000. Jamison had $2,000 of available credits and he had $4,000
of taxes withheld by his employer. What are Jamison's taxes due (or taxes refunded) with his tax
return?

$1,000 taxes due

TB TF Qu. 04-38 (Static) The test for a qualifying child

includes a gross...
The test for a qualifying child includes a gross income restriction while the test for qualifying
relative does not.

FALSE

TB MC Qu. 04-84 (Static) In order to be a qualifying relative

of another,...
In order to be a qualifying relative of another, an individual's gross income must be less than
_______.

the dependency exemption amount

TB MC Qu. 04-108 (Static) Jasmine and her husband, Arty,

have been married...
Jasmine and her husband, Arty, have been married for 25 years. In May of this year, the couple
divorced. During the year, Jasmine provided all the support for herself and her 22-year-old child,
Dexter, who lived in the same home as Jasmine for the entire year. Dexter is employed full time,
earning $29,000 this year. What is Jasmine's most favorable filing status for the year?

SINGLE
TB TF Qu. 04-26 (Static) For purposes of the qualifying
child residence...
For purposes of the qualifying child residence test, a child's temporary absence from the
taxpayer's home to attend school full time is counted as though the child lived in the taxpayer's
home during the absence.

TRUE

TB TF Qu. 04-13 (Static) The character of income is a factor

in...
The character of income is a factor in determining the rate at which the income is taxed.

TRUE