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

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Question 51

Multiple Choice

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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:

A) September 15 ^th.
B) October 15 ^th.
C) August 15 ^th.
D) November 15 ^th.
E) None of the choices are correct.

F) C) and E)
G) A) and B)

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Question 52

Multiple Choice

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Generally, if April 15 ^th falls on a Saturday, individual tax returns will be due on:

A) April 14 ^th.
B) April 15 ^th.
C) April 16 ^th.
D) April 17 ^th.
E) None of the choices are correct.

F) B) and C)
G) A) and C)

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Question 53

Multiple Choice

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Allen filed his 2020 tax return on May 15 ^th, 2021, 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 2020 tax return should end:

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:

If the president vetoes tax legislation, Congress:

Dan received a letter from the IRS that gave him the choice of (1) requesting a conference with an appeals officer or (2) agreeing to a proposed tax adjustment. Dan received the:

Which of the following is not a source of a tax practitioner's professional responsibilities?

Martin has never filed a 2020 tax return despite earning approximately $30,000 providing landscaping work in the community. In what tax year, will the statute of limitations expire for Martin's 2020 tax return?

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

In researching a question of fact, the researcher should focus her efforts on identifying authorities with fact patterns similar to her client's facts.

Mel recently received a 30-day letter from the IRS. Although his tax return being audited has several potential large issues (potential tax consequences of $70,000 − $80,000), the IRS agent auditing his return only identified one item that will require a modest adjustment of $10,000. Mel feels strongly that the $10,000 adjustment would not hold up in court and was surprised that the IRS agent did not identify some of the other potential larger issues. What are Mel's choices with respect to the 30-day letter and what factors should influence his decisions?

Princess, who resides in the 2 ^nd 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?

Carey was researching a tax issue and located what appears to be a favorable IRS regulation. He knows that regulations serve different purposes and are issued in different forms. Which purpose and which form of regulation would provide Carey the most confidence that he has found an authority that carries a lot of weight for the long term? How could Carey check the status of this regulation?

Proposed and temporary regulations have the same authoritative weight.

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

Under the Statements on Standards for Tax Services, a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Ramon's tax return was randomly selected for audit. Which IRS program likely selected Ramon's return for audit?

For which of the following tax violations is a civil penalty not imposed on taxpayers?

If April 15 ^th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17 ^th (assuming it is not a holiday).

In general, a CPA will satisfy his professional responsibilities under the Statements on Standards for Tax Services when recommending a tax return position if he complies with the standards imposed by the applicable tax authority.