reg 34 a 1312021

  1. For the year of death, the living spouse may choose MFJ status. Because the surviving spouse has no dependents (qualifying individuals), the only filing status available for subsequent years is -------------.
    For the year of death, the living spouse may choose MFJ status. Because the surviving spouse has no dependents (qualifying individuals), the only filing status available for subsequent years is single.
  2. A couple filed a joint return in prior tax years. During the current tax year, one spouse died. The couple has no dependent children. What is the filing status available to the surviving spouse for the first subsequent tax year?
    Single.
  3. A taxpayer’s accuracy-related penalty due to disregard of rules and regulations, or substantial understatement of income tax, may be avoided if the return position is adequately disclosed and has a reasonable basis. Generally, the penalty is equal to ------- of the underpayment.
    A taxpayer’s accuracy-related penalty due to disregard of rules and regulations, or substantial understatement of income tax, may be avoided if the return position is adequately disclosed and has a reasonable basis. Generally, the penalty is equal to 20% of the underpayment.
  4. A taxpayer’s accuracy-related penalty due to disregard of rules and regulations, or substantial understatement of income tax, may be----------------------------------------------------------------------------. Generally, the penalty is equal to 20% of the underpayment.
    A taxpayer’s accuracy-related penalty due to disregard of rules and regulations, or substantial understatement of income tax, may be avoided if the return position is adequately disclosed and has a reasonable basis. Generally, the penalty is equal to 20% of the underpayment.
  5. Amounts that are paid for future services are required to be included in the -----------------------.
    Amounts that are paid for future services are required to be included in the year of receipt.
  6. The general statute of limitations for assessment of a deficiency is ----------------- from the date the return was filed.
    The general statute of limitations for assessment of a deficiency is 3 years from the date the return was filed.
  7. A -------------- period of limitation for filing a refund claim is allowed if the overpayment of tax is due to losses from worthless securities, where the fact of worthlessness is discovered after filing the original return.
    A 7-year period of limitation for filing a refund claim is allowed if the overpayment of tax is due to losses from worthless securities, where the fact of worthlessness is discovered after filing the original return.
  8. If tax has been assessed within the 3-year limitation period, the IRS generally has ------------- following the assessment to collect the tax by levy or in a court proceeding.
    If tax has been assessed within the 3-year limitation period, the IRS generally has 10 years following the assessment to collect the tax by levy or in a court proceeding.
  9. An omission of items of more than ------- of gross income extends the assessment period to 6 years.
    An omission of items of more than 25% of gross income extends the assessment period to 6 years.
  10. A taxpayer’s accuracy-related penalty due to disregard of the rules and regulations or substantial understatement of income tax may be avoided if -----------------------------------------------------------------------------
    A taxpayer’s accuracy-related penalty due to disregard of the rules and regulations or substantial understatement of income tax may be avoided if the return position is adequately disclosed and has a reasonable basis.
  11. What is the authority described by each statement

    Interpretations of specific Code by which the IRS is bound.
    Treasury Regulations.
  12. What is the authority described by each statement

    Announces official IRS rulings and procedures.
    Internal Revenue Bulletins.
  13. What is the authority described by each statement

    Explains the law in plain language for taxpayers and their advisors.
    IRS Publications.
  14. What is the authority described by each statement

    The primary source of federal tax law.
    Internal Revenue Code.
  15. What is the authority described by each statement

    Conclusion of the IRS that is confined to the specific case for which it was issued.
    Private Letter Rulings.
  16. What is the authority described by each statement

    Official interpretation of the tax law by the IRS as applied to a given set of facts.
    IRS Revenue Rulings.
  17. What is the authority described by each statement

    Highest level of judicial authority in the realm of tax law.
    Supreme Court decisions.
  18. ------------------------------ interpret specific Code sections and are binding on the IRS.
    Treasury Regulations interpret specific Code sections and are binding on the IRS.
  19. ----------------------------------------- are weekly publications that announce official IRS rulings, procedures, and other miscellaneous documents having application to tax law interpretation and administration.
    Internal Revenue Bulletins (IRBs) are weekly publications that announce official IRS rulings, procedures, and other miscellaneous documents having application to tax law interpretation and administration.
  20. ------------------------------- are a useful source of information that often highlight changes in the law and provide examples illustrating IRS positions. Publications should not be cited to sustain a position.
    IRS Publications are a useful source of information that often highlight changes in the law and provide examples illustrating IRS positions. Publications should not be cited to sustain a position.
  21. The ----------------------------- is the primary source of federal tax law. It imposes the various federal taxes and sets provisions for the administration of the laws.
    The Internal Revenue Code is the primary source of federal tax law. It imposes the various federal taxes and sets provisions for the administration of the laws.
  22. -------------------------------- are intended to promote uniform application of tax laws by IRS employees and to reduce the number of letter ruling requests.
    IRS Revenue Rulings are intended to promote uniform application of tax laws by IRS employees and to reduce the number of letter ruling requests.
  23. An S corporation has an original tax due date of the -------------------------- after the close of the applicable tax year.
    An S corporation has an original tax due date of the 15th day of the 3rd month after the close of the applicable tax year.
  24. What is the tax planning technique that is described in the scenario

    An individual taxpayer currently working in Boston has offers to become a high-profile attorney in either New York City or Miami.  The taxpayer knows Florida has no state income tax and chooses the Miami job.
    Shifting.
  25. What is the tax planning technique that is described in the scenario

    Before the end of its tax year, EZ Cash Corp. undertakes a legal transaction that it knows will lead to a large capital loss.
    Avoidance.
  26. What is the tax planning technique that is described in the scenario

    Instead of reinvesting in taxable bonds, Marsha invests in municipal bonds.
    Conversion.
  27. What is the tax planning technique that is described in the scenario

    Leroy owns equipment that has a FMV greater than its adjusted basis to him.  Rather than selling the equipment, Leroy contributes it to his partnership, Leroy & Brown, LP in exchange for partnership interest.
    Timing.
  28. Minimization of tax liability through legal arrangements and transactions undertaken before tax liability is incurred constitutes tax ----------------.
    Minimization of tax liability through legal arrangements and transactions undertaken before tax liability is incurred constitutes tax avoidance.
  29. Gain on the sale of a taxpayer’s principal residence is excluded up to -------------------- for married couples filing jointly and -------------------- for all other taxpayers.
    Gain on the sale of a taxpayer’s principal residence is excluded up to $500,000 for married couples filing jointly and $250,000 for all other taxpayers.
  30. ---------------------------, such as fluctuations in market value, is not included in AGI until the asset is disposed of or the gain is segregated in some other way.
    Unrealized income, such as fluctuations in market value, is not included in AGI until the asset is disposed of or the gain is segregated in some other way.
  31. amount received for child support is --------------------.
    amount received for child support is not taxable.
  32. pre-2019 divorces only the amount received for -------------- is taxable.
    pre-2019 divorces only the amount received for alimony is taxable.
  33. Interest earned on life insurance proceeds after death of the insured is ---------------------- to the beneficiary.
    Interest earned on life insurance proceeds after death of the insured is gross income to the beneficiary.
  34. Under accountable plans, only reimbursements in excess of ---------------------------- are taxable to employees.
    Under accountable plans, only reimbursements in excess of actual expenses are taxable to employees.
  35. The value of property acquired by gift is excluded from -------------------------------.
    The value of property acquired by gift is excluded from gross income.
  36. Scholarships received for tuition and fees, books, and supplies are ----------------------------------.
    Scholarships received for tuition and fees, books, and supplies are excluded from gross income.
  37. Scholarships covering room and board expenses are -----------------.
    Scholarships covering room and board expenses are taxable.
  38. A penalty may be assessed on -------------------------who prepares and signs a tax return or claim for a refund.
    A penalty may be assessed on any individual who prepares and signs a tax return or claim for a refund.
  39. Sec. 121 excludes the gain on the sale of a principal residence, up to ----------------------------------, subject to certain rules and limitations
    Sec. 121 excludes the gain on the sale of a principal residence, up to $250,000 per taxpayer, subject to certain rules and limitations
  40. ------------------------------------------ occurs when the accountant makes a false representation of a material fact not known to be false but intended to induce reliance.
    Negligent misrepresentation occurs when the accountant makes a false representation of a material fact not known to be false but intended to induce reliance.
Author
Joens1313
ID
354426
Card Set
reg 34 a 1312021
Description
reg 34 a 1312021
Updated