Question 1

For each of the indicated penalties, indicate the appropriate taxpayer defense.
a.Reasonable basis
b.Reasonable cause
c.Substantial authority
d.Disclosure on return
-Negligence in filing a return

Accepted Answer

The answer of For each of the indicated penalties, indicate...

Question 2

When a taxpayer wants to know the IRS interpretation of how the tax law will be applied to a proposed transaction,he or she should secure a ____________________ ____________________.

Accepted Answer

The answer of When a taxpayer wants to know the...

Question 3

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

Accepted Answer

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

Question 4

The chief executive of the IRS is the _________________________.

Accepted Answer

The answer of The chief executive of the IRS is...

Question 5

A taxpayer's return might be selected for audit on the basis of the ____________________ score that the IRS computes.

Accepted Answer

The answer of A taxpayer's return might be selected for...

Question 6

For each of the indicated penalties, indicate the appropriate taxpayer defense.
a.Reasonable basis
b.Reasonable cause
c.Substantial authority
d.Disclosure on return
-Preparer penalty for reckless conduct

Accepted Answer

The answer of For each of the indicated penalties, indicate...

Question 7

For each of the indicated penalties, indicate the appropriate taxpayer defense.
a.Reasonable basis
b.Reasonable cause
c.Substantial authority
d.Disclosure on return
-Substantial understatement of tax

Accepted Answer

The answer of For each of the indicated penalties, indicate...

Question 8

For each of the indicated penalties, indicate the appropriate taxpayer defense.
a.Reasonable basis
b.Reasonable cause
c.Substantial authority
d.Disclosure on return
-Failure to deposit withholding tax

Accepted Answer

Reasonable cause is the appropriate taxpayer defense for failure to deposit withholding tax. This defense is used when the taxpayer can demonstrate that they exercised ordinary business care and prudence but were nevertheless unable to comply with the tax law.

Question 9

The taxpayer might secure a(n)_________________________ ____________________ to assure that a retirement plan qualifies for tax deferral treatment.

Accepted Answer

The answer of The taxpayer might secure a(n)_________________________ ____________________ to...

Question 10

The IRS can pay an informant's fee of up to ____________________% of the recovered tax,interest,and penalty amounts.In the typical year,about ____________________ such rewards are paid.The reward can be as high as __________% for a "whistle blower."

Accepted Answer

The answer of The IRS can pay an informant's fee...

Question 11

The IRS is one of the largest Federal agencies,employing at least ____________________ people throughout the year.

Accepted Answer

The answer of The IRS is one of the largest...

Question 12

During an audit,either the IRS or the taxpayer might request that the National Office issue a(n)____________________ ____________________ memorandum concerning a disputed issue.

Accepted Answer

The answer of During an audit,either the IRS or the...

Question 13

If the taxpayer refuses to pay an assessed tax,the IRS can place a(n)____________________ on the taxpayer's property and a(n)_________________________ on the taxpayer's wages.

Accepted Answer

The answer of If the taxpayer refuses to pay an...

Question 14

For each of the indicated penalties, indicate the appropriate taxpayer defense.
a.Reasonable basis
b.Reasonable cause
c.Substantial authority
d.Disclosure on return
-Failure to file a return

Accepted Answer

The answer of For each of the indicated penalties, indicate...

Question 15

After the completion of an audit,the taxpayer has ____________________ days to petition the Tax Court to rule in its favor.

Accepted Answer

The answer of After the completion of an audit,the taxpayer...

Question 16

The ____________________ ____________________,a presidential appointee,represents the IRS in all tax litigation.

Accepted Answer

The answer of The ____________________ ____________________,a presidential appointee,represents the IRS...

Question 17

About ____________________% of all Forms 1040 are audited each year.

Accepted Answer

The answer of About ____________________% of all Forms 1040 are...

Question 18

The IRS is a subsidiary agency of the Department of the ____________________.

Accepted Answer

The answer of The IRS is a subsidiary agency of...

Question 19

The IRS processes about ____________________ million individual tax returns every year.

Accepted Answer

The answer of The IRS processes about ____________________ million individual...

Question 20

For each of the indicated penalties, indicate the appropriate taxpayer defense.
a.Reasonable basis
b.Reasonable cause
c.Substantial authority
d.Disclosure on return
-Preparer penalty for taking an unreasonable position

Accepted Answer

The answer of For each of the indicated penalties, indicate...

Quiz 16: Tax Practice and Ethics

For each of the indicated penalties, indicate the appropriate taxpayer defense. a.Reasonable basis b.Reasonable cause c.Substantial authority d.Disclosure on return -Negligence in filing a return

When a taxpayer wants to know the IRS interpretation of how the tax law will be applied to a proposed transaction,he or she should secure a .

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

The chief executive of the IRS is the _________________________.

A taxpayer's return might be selected for audit on the basis of the ____________________ score that the IRS computes.

For each of the indicated penalties, indicate the appropriate taxpayer defense. a.Reasonable basis b.Reasonable cause c.Substantial authority d.Disclosure on return -Preparer penalty for reckless conduct

For each of the indicated penalties, indicate the appropriate taxpayer defense. a.Reasonable basis b.Reasonable cause c.Substantial authority d.Disclosure on return -Substantial understatement of tax

For each of the indicated penalties, indicate the appropriate taxpayer defense. a.Reasonable basis b.Reasonable cause c.Substantial authority d.Disclosure on return -Failure to deposit withholding tax

The taxpayer might secure a(n)_____ to assure that a retirement plan qualifies for tax deferral treatment.

The IRS can pay an informant's fee of up to __________% of the recovered tax,interest,and penalty amounts.In the typical year,about such rewards are paid.The reward can be as high as % for a "whistle blower."

The IRS is one of the largest Federal agencies,employing at least ____________________ people throughout the year.

During an audit,either the IRS or the taxpayer might request that the National Office issue a(n) memorandum concerning a disputed issue.

If the taxpayer refuses to pay an assessed tax,the IRS can place a(n) on the taxpayer's property and a(n)_____ on the taxpayer's wages.

For each of the indicated penalties, indicate the appropriate taxpayer defense. a.Reasonable basis b.Reasonable cause c.Substantial authority d.Disclosure on return -Failure to file a return

After the completion of an audit,the taxpayer has ____________________ days to petition the Tax Court to rule in its favor.

The ,a presidential appointee,represents the IRS in all tax litigation.

About ____________________% of all Forms 1040 are audited each year.

The IRS is a subsidiary agency of the Department of the ____________________.

The IRS processes about ____________________ million individual tax returns every year.

For each of the indicated penalties, indicate the appropriate taxpayer defense. a.Reasonable basis b.Reasonable cause c.Substantial authority d.Disclosure on return -Preparer penalty for taking an unreasonable position