FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Tax Compliance, the Irs, and Tax Authorities

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following has the lowest authoritative weight?

A) Legislative regulation
B) Private letter ruling
C) Revenue ruling
D) Interpretative regulation
E) Revenue procedure

F) All of the above
G) A) and B)

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

If a taxpayer loses a case at the circuit court level, he is granted an automatic appeal hearing with the Supreme Court.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

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?

Temporary regulations have more authoritative weight than revenue rulings.

For the following tax returns, identify the method the IRS likely used to select the return for audit. a. Dan made a mistake in adding his income on his tax return. b. Juanita failed to report her salary from her second job on her tax return. c. Michael and Venita deducted a relatively large amount of travel expenses on their tax return for their business. The travel expense is large relative to other taxpayers in similar businesses with similar levels of income. d. Paul and Melissa recently went through a very nasty divorce. One of the issues was Paul's less than forthright accounting of his income in determining the appropriate level of alimony.

Which of the following is not a common method that the IRS uses to select returns for audit?

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

Chris and Chuck were recently debating whether the Internal Revenue Code is "logical." Chris offers that she has briefly reviewed the Code and could hardly understand its organizational structure, if there is one. Please describe the basic organization of the Code and how understanding its organization may be especially beneficial to the tax researcher.

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

According to Statements on Standards for Tax Services No. 1, a tax practitioner can recommend a tax return position:

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

Greg earned $25,500 this year and had $1,500 of federal income taxes withheld from his salary. Assuming that Greg is single, 25 years old, and will have a total tax liability of $1,375 (and thus will receive a $125 refund) , he:

Generally, code sections are arranged (grouped together) :

A client has recently learned of a proposed tax bill that would increase the tax rates on investment gains by 5 percent. The president does not support this increase. Please describe for your client the process by which new tax legislation is created and how the president's disapproval may influence the enactment of the bill.

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S. District Court to contest the adjustment and hear the case.

A tax practitioner can avoid IRS penalty relating to a tax return position:

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

Which of the following has the highest authoritative weight?

Closed facts are especially conducive to tax planning.

Jeremy has a new client. He has identified a research question that relates to a transaction that the client completed several months ago. This type of research question will primarily involve: