25 May Question 1. Theproposedflattax:
Question
1. Theproposedflattax:
a. Wouldeliminatetheincome tax.
b. Would simplifytheincometax.
c. Would taxtheincrement invalue asgoods movethroughthe productionand manufacturingstages tothemarketplace.
d. Isataxonconsumption.
e. None ofthe above.
.
2. AVAT(valueaddedtax):
a. Isregressive inits effect.
b. Has notprovedpopular outsideofthe U.S.
c. Isnotataxonconsumption.
d. Isusedexclusively bythirdworld (lessdeveloped) countries.
e. None ofthe above.
3. Characteristics ofthe “FairTax” (i.e.,national salestax) includewhich,if any,of thefollowing:
a. AbolitionoftheFederal individual(butnotthe corporate)incometax.
b. Abolition ofall Federalincome taxesbut retentionof payrolltaxes (includingthe self-employmenttax).
c. Abolition ofall Federalincometaxes andpayrolltaxes butretentionof theFederalestate andgifttaxes.
d. Abolition ofall Federalincome andpayroll taxesas wellas theFederal estateandgift taxes.
e. None ofthe above.
4. Intermsofprobability,which ofthefollowingtaxpayerswould beleast likelyto beaudited bythe IRS?
a. Taxpayer ownsand operatesacheck-cashingservice.
b. Taxpayerisanemployedelectrician.
c. Taxpayerjustreceiveda$3millionpersonalinjuryawardasaresultofalawsuit.
d. Taxpayer justwon a$1millionslotmachinejackpotataLasVegascasino.
e. Taxpayer hasbeen auditedseveral timesbefore.
5. Whichof the followingisacharacteristicoftheauditprocess?
a. Most taxpayeraudits involve“special” agents.
b. Self-employed taxpayersarelesslikelytobeselectedforauditthanemployedtaxpayers.
c. Less importantissuesare handledbymeans ofacorrespondenceaudit.
d. If ataxpayerdisagreeswiththeIRSauditor’sfinding,theonlyresortistothecourts.
e. None ofthe above.
.
6. Davidfiles histax return45 daysafterthe duedate. Alongwith thereturn,David remitsacheckfor$40,000whichisthebalanceofthetaxowed.Disregardingtheinterestelement,David’stotalfailuretofileandtopaypenaltiesare:
a. $400.
b.$3,600.
c. $4,000.
d.$4,400.
e.Noneof theabove.
7. Acharacteristicofthefraudpenaltiesis:
a. Whennegligenceand civilfraud applyto adeficiency,thenegligencepenaltypredominates.
b. Criminalfraud canresult inafineandaprisonsentence.
c. The criminalfraud penaltyis 75%of thedeficiencyattributable tothe fraud.
d. TheIRShasthesameburdenofproofinthecaseofcriminalfraudthanwithcivil fraud.
e. None ofthe above.
8. Regardingproperethical guidelines,which (ifany) ofthe followingis correct?
a. The useofclient estimatesinpreparing areturnmaybeacceptable.
b. Under nocircumstances shouldaquestiononataxreturnbeleftunanswered.
c. If aclienthasmadeamistakeinaprioryear’sreturnandrefusestocorrectit,youshouldwithdrawfromthe engagement.
d. Iftheexactamount ofadeductionisnotcertain(e.g.,aroundmid-$600s),itshouldberecordedasanoddamount(i.e.,$649)soastoincrease theappearanceofgreatercertainty.
e. None ofthe above.
9. Botheconomic andsocialconsiderations canbeused tojustify:
a. Favorabletaxtreatmentforaccidentand healthplansprovidedforemployees andfinancedbyemployers.
b. Disallowanceof anydeductionfor expendituresdeemedto becontrary topublic policy(e.g.,fines, penalties,illegalkickbacks,bribes togovernmentofficials).
c. Various taxcredits, deductions,and exclusionsthat aredesigned toencourage taxpayersto obtainadditionaleducation.
d. Allowanceofadeductionforstateandlocalincometaxespaid.
e. None ofthe above.
10. Social considerationscanbeused tojustify:
a. Allowanceofacreditforchildcareexpenses.
b. Allowing excesscapital lossesto becarried overto otheryears.
c. Allowingacceleratedamortizationforthecostofinstallingpollutioncontrolfacilities.
d. AllowingaFederalincometaxdeductionforstateandlocalsalestaxes.
e. None ofthe above.
.
11. Allowingadomesticproductionactivitiesdeductionforcertainmanufacturingincomecanbejustified:
a. As mitigatingthe effectofthe annualaccounting periodconcept.
b. As promotingadministrativefeasibility.
c. Byeconomicconsiderations.
d. Based onthe wherewithalto payconcept.
e. None ofthe above.
12. Provisionsinthe taxlaw thatpromote energyconservation andmoreuse ofalternative (non-fossil)fuels canbejustifiedby:
a. Political considerations.
b. Economicandsocialconsiderations.
c. Promoting administrativefeasibility.
d. Encouragement ofsmallbusiness.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.