Question 1

The proposed flat tax:

Accepted Answer

A)   Would eliminate the income tax.
B)   Would simplify the income tax.
C)   Would tax the increment in value as goods move through the production and manufacturing stages to the marketplace.
D)   Is a tax on consumption.
E)   None of the above.F) C) and D)
G) C) and E)

Question 2

A fixture will be subject to the ad valorem tax on realty rather than the ad valorem tax on personalty.

Accepted Answer

A) True 
 B)False

Question 3

Ava,an estate planner,is advising her wealthier clients to make any large gifts to family members before 2013.Why?

Accepted Answer

Under existing law,the exemption equival...

Question 4

When interest is charged on a deficiency,any part of a month counts as a full month.

Accepted Answer

A) True 
 B)False

Question 5

If an income tax return is not filed by a taxpayer,there is no statute of limitations on assessments of tax by the IRS.

Accepted Answer

A) True 
 B)False

Question 6

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

Accepted Answer

A) True 
 B)False

Question 7

The states that impose a general sales tax also have a use tax.

Accepted Answer

A) True 
 B)False

Question 8

A major disadvantage of a flat tax type of income tax is its complexity.

Accepted Answer

A) True 
 B)False

Question 9

The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S.

Accepted Answer

A) True 
 B)False

Question 10

Federal excise taxes that are no longer imposed include:

Accepted Answer

A)   Tax on air travel.
B)   Tax on wagering.
C)   Tax on the manufacture of sporting equipment.
D)   Tax on theatre admissions.
E)   None of the above.F) A) and C)
G) A) and B)

Question 11

The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.

Accepted Answer

A) True 
 B)False

Question 12

Under state amnesty programs,all delinquent and unpaid income taxes are forgiven.

Accepted Answer

A) True 
 B)False

Question 13

Taxes levied by all states include:

Accepted Answer

A)   Tobacco excise tax.
B)   Individual income tax.
C)   Inheritance tax.
D)   General sales tax.
E)   None of the above.F) B) and C)
G) C) and D)

Question 14

The Federal estate and gift taxes are examples of progressive taxes.

Accepted Answer

A) True 
 B)False

Question 15

Which,if any,of the following taxes are proportional (rather than progressive) ?

Accepted Answer

A)   Federal corporate income tax.
B)   Federal employment taxes (i.e., FICA, FUT
A)  .
C)   Federal estate tax.
D)   Federal gift tax.
E)   All of the above.F) C) and D)
G) B) and E)

Question 16

During any month in which both the failure to file penalty and the failure to pay penalty apply,the failure to file penalty is reduced by the amount of the failure to pay penalty.

Accepted Answer

A) True 
 B)False

Question 17

Which,if any,of the following statements best describes the history of the Federal income tax?

Accepted Answer

A)   It existed during the Civil War.
B)   The Federal income tax on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution.
C)   The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution.
D)   Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution.
E)   None of the above.F) A) and B)
G) B) and E)

Question 18

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Accepted Answer

A) True 
 B)False

Question 19

Brayden files his Federal income tax return by April 15,but does not pay the tax.Although he expects to pay interest on the large amount of tax he still owes,he feels that the timely filing has avoided any penalties.Is Brayden's assumption correct?

Accepted Answer

Although Brayden has avoided t...

Question 20

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Accepted Answer

A) True 
 B)False

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

When interest is charged on a deficiency,any part of a month counts as a full month.

Correct AnswerverifiedShow Answer

If an income tax return is not filed by a taxpayer,there is no statute of limitations on assessments of tax by the IRS.

Correct AnswerverifiedShow Answer

Which,if any,of the following statements best describes the history of the Federal income tax?

Correct AnswerverifiedShow Answer

During any month in which both the failure to file penalty and the failure to pay penalty apply,the failure to file penalty is reduced by the amount of the failure to pay penalty.

Correct AnswerverifiedShow Answer

A fixture will be subject to the ad valorem tax on realty rather than the ad valorem tax on personalty.

Correct AnswerverifiedShow Answer

The proposed flat tax:

Correct AnswerverifiedShow Answer

Under state amnesty programs,all delinquent and unpaid income taxes are forgiven.

Correct AnswerverifiedShow Answer

The Federal estate and gift taxes are examples of progressive taxes.

Correct AnswerverifiedShow Answer

A major disadvantage of a flat tax type of income tax is its complexity.

Correct AnswerverifiedShow Answer

Taxes levied by all states include:

Correct AnswerverifiedShow Answer

The states that impose a general sales tax also have a use tax.

Correct AnswerverifiedShow Answer

The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S.

Correct AnswerverifiedShow Answer

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Correct AnswerverifiedShow Answer

The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.

Correct AnswerverifiedShow Answer

Ava,an estate planner,is advising her wealthier clients to make any large gifts to family members before 2013.Why?

Correct AnswerverifiedUnder existing law,the exemption equival...View AnswerShow Answer

Brayden files his Federal income tax return by April 15,but does not pay the tax.Although he expects to pay interest on the large amount of tax he still owes,he feels that the timely filing has avoided any penalties.Is Brayden's assumption correct?

Correct AnswerverifiedAlthough Brayden has avoided t...View AnswerShow Answer

Which,if any,of the following taxes are proportional (rather than progressive) ?

Correct AnswerverifiedShow Answer

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Correct AnswerverifiedShow Answer

The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.

Correct AnswerverifiedShow Answer

Federal excise taxes that are no longer imposed include:

Correct AnswerverifiedShow Answer

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Under existing law,the exemption equival...
View Answer

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Although Brayden has avoided t...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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