Tax: Chapter 2 Learn Smart
Terms in this set (40)
When does the statute of limitations generally end for tax noncompliance when fraud is not a factor?
US Tax Court
A taxpayer feels very confident in her position and lacks the funds to pay the assessment.
US District Court
The tax return position is low on technical support, but high on emotional appeal.
US Court of Federal Claims
The taxpayer knows that the Circuit Court of Appeals in the circuit in which she resides has ruled against a similar tax return position in the past.
The due date for filing an individual tax return is _________ 15th.
List the five steps in the research process.
Locate tax authorities
Analyze tax authorities
Which of the following taxpayer characteristics are NOT factors in determining whether or not a taxpayer is required to file a tax return?
(Age, Gross Income, and Filing Status are)
Which of the following reasons is NOT sufficient for the US Supreme Court to agree to hear a tax case?
The tax issues are not clearly covered in the Internal Revenue Code
Revenue _________ and revenue _________ are second in administrative authoritative weight after regulations.
Starting with the court having the highest level of authority, rank the courts in descending order of authoritative rank.
US Supreme Court
Circuit Court of Appeal
US Tax Court
US Court of Federal Claims
__________ facts provide opportunities for tax planning, while ___________ facts deal with tax compliance.
Which type of tax authority is the Internal Revenue Code of 1986?
List the steps in the legislative process to enact a tax law.
The bill is discussed in the House Ways and Means Committee and moves to the House of Representatives for a vote.
The bill is reviewed in the Senate Finance committee for discussion and revisions.
The revised bill from the Finance Committee passes a vote in the Senate.
The two versions of the bill are reconciled in the Joint Conference Committee.
The bill passes both the House of Representatives and the Senate.
The bill is signed into law or vetoed by the President.
Which of the penalties is the most common and generally comes in the form of monetary penalties?
Which of the following choices is NOT one of the steps in the tax research process?
Tax articles in professional journals and law reviews are examples of _________ authorities?
Which of the following are examples of statutes, rules, and criteria that may govern tax practitioners?
AICPA Code of Professional Conduct
AICPA Statements of Standards for Tax Services
Statutes enacted by a CPA's specific state board of accountancy
IRS Circular 230
The tax preparer can avoid a penalty if the tax position has at least a ________ __________, as long as it is disclosed on the tax return.
Which of the following statements are correct regarding tax filing requirements?
All corporations must file regardless of income.
Estates are required to file income tax returns if their gross income exceeds $600.
The ________ ___________ is charged with administering and interpreting the tax laws.
To where does a losing party in a trial level court appeal the decision?
US Circuit Court of Appeals
The highest judicial authority in the US _________ Court followed by the 13 US Circuit Courts of Appeal, the US ________ Court, the US Court of Federal Claims, and the District Court
Which of the following choices describes the unofficial tax authorities that interpret and explain the meaning of the various tax laws and regulations?
Starting with the highest authoritative weight, rank the authorities in descending order.
Internal Revenue Code
Revenue Rulings and Revenue Procedures
What action does the 30-day letter provide a taxpayer if the taxpayer does NOT agree with an assessment after being audited by the IRS?
The taxpayer can request an appeals conference.
Revenue _________ address the application of the Code and regulations to a specific factual situation. They provide a much more detailed interpretation of the Code than the regulations as it applies to a specific transaction.
Which of the following statements is incorrect?
Primary authorities include IRS forms and publications.
The IRS can impose both __________ and __________ penalties to encourage tax compliance by both the tax professionals and taxpayers.
When a new tax law is passed, how is it incorporated into the Internal Revenue Code?
It is placed within a specific subtitle, chapter, subchapter, part, subpart, and section of the Code where it is most appropriate.
It is incorporated with other code sections addressing similar transactions.
Administrative and judicial tax authorities are interpretations of which statutory authority?
Internal Revenue Code
_________ facts provide opportunities for tax planning, while _________ facts deal with tax compliance.
The US ________ Court agrees to hear only a few tax cases each year. The case must have great significance to a broad cross-section of taxpayers or settle disagreement among the circuit courts in order to be heard in this court.
How does the losing party in a trial court decide which US Circuit Court of Appeals will hear the case?
The case must be appealed to the US Circuit Court with jurisdiction over the taxpayer's case (typically based on the taxpayer's residence).
Which type of taxpayers have lower gross income thresholds for filing than the general filing requirements?
Dependents of other taxpayers
Which of the following primary authorities is not a legislative source of authority?
Treasury regulations come in three forms: ________ regulations have been issued in their final form and represent the Treasury's interpretations of the Code; _________ regulations have a limited life but carry high authoritative weight; and __________ regulations, which have the lowest authority.
Final; Temporary; Proposed
The three type of IRS audits are __________, ____________, and ___________ examinations.
Correspondence; Office; Field
Who has the ultimate authority to interpret the IRC and settle tax disputes?
The Judicial System
The gross income filing thresholds are calculated as the sum of which of the following criteria:
Additional deductions for taxpayers age 65 or older
Which of the Treasury regulations represent the understanding that the Treasury Department has of the Internal Revenue Code?
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