Tax Accounting Exam 1 Questions With Complete Solutions
-CPAs
-attorneys
-enrolled agents
-registered tax preparers Correct Answers who is covered by
circular 230
-dependent taxpayer test
-joint return test
-citizen or resident test
-qualifying child or relative Correct Answers what tests must
be met to determine dependency?
-employment test
-time test
-distance test Correct Answers the deductibility of moving are
subject to these 3 tests...
-filing status
-taxable interest income
-wage income
-unemployment compensation
-permitted deductions
-taxable income
-tax liability
-tax payments
-earned income credit
-Making Work Pay credit
-amount owed or refund Correct Answers what are the 11
major components of the Form 1040EZ?
, -illegal payments
-lobbying
-payments for fines and penalties Correct Answers examples of
business expenses that are not deductible
-IRS regulations
-revenue rulings
-revenue procedures
-private letter rulings
-IRS notices Correct Answers what 5 things does
administrative tax authority include?
-jury duty pay
-prizes and awards
-forgiveness of debt
-insurance proceeds in excess of the adjusted basis of the
property Correct Answers included on the other income line on
a tax return
-life insurance
-educational assistance
-dependent care assistance
-cafeteria plans offered to employees Correct Answers
nontaxable fringe benefits with certain limitations
-no additional cost services provided to an employee
-discounts provided to employees for products or services
normally sold by the business
-a working condition fringe benefit
-qualified transportation
-CPAs
-attorneys
-enrolled agents
-registered tax preparers Correct Answers who is covered by
circular 230
-dependent taxpayer test
-joint return test
-citizen or resident test
-qualifying child or relative Correct Answers what tests must
be met to determine dependency?
-employment test
-time test
-distance test Correct Answers the deductibility of moving are
subject to these 3 tests...
-filing status
-taxable interest income
-wage income
-unemployment compensation
-permitted deductions
-taxable income
-tax liability
-tax payments
-earned income credit
-Making Work Pay credit
-amount owed or refund Correct Answers what are the 11
major components of the Form 1040EZ?
, -illegal payments
-lobbying
-payments for fines and penalties Correct Answers examples of
business expenses that are not deductible
-IRS regulations
-revenue rulings
-revenue procedures
-private letter rulings
-IRS notices Correct Answers what 5 things does
administrative tax authority include?
-jury duty pay
-prizes and awards
-forgiveness of debt
-insurance proceeds in excess of the adjusted basis of the
property Correct Answers included on the other income line on
a tax return
-life insurance
-educational assistance
-dependent care assistance
-cafeteria plans offered to employees Correct Answers
nontaxable fringe benefits with certain limitations
-no additional cost services provided to an employee
-discounts provided to employees for products or services
normally sold by the business
-a working condition fringe benefit
-qualified transportation
