TEST BANK For; South-Western Federal Taxation 2025: Comprehensive, 48th Edition by Young, Complete 30 Chapters

TEST BANK
South-Western Federal Taxation 2025: Comprehensive,
48th Edition by Young Complete 30 Chapters




TEST BANK



Pagef1

,TABLE OF CONTENTS
f f f




Chapterf1:fAnfIntroductionftofTaxationfandfUnderstandingfthefFederalfTaxfLawf
Chapterf2:fWorkingfwithfthefTaxfLawf
Chapterf3:fTaxfFormulafandfTaxfDeterminationf
Chapterf4:fGrossfIncome:fConceptsfandfInclusionsf
Chapterf5:fGrossfIncome:fExclusionsf
Chapterf6:fDeductionsfandfLosses:fInfGeneralf7-1fBadfDebtsf
Chapterf8:fDepreciation,fCostfRecovery,fAmortization,fandfDepletionf
Chapterf9:fDeductions:fEmployeefandfSelf-Employed-RelatedfExpensesf
Chapterf10:fDeductionsfandfLosses:fCertainfItemizedfDeductionsf
Chapterf11:fInvestorfLossesf
Chapterf12:fTaxfCreditsfandfPaymentsf
Chapterf13:fPropertyfTransactions:fDeterminationfoffGainforfLoss,fBasisfConsiderations,fandfNontaxabf
Chapterf14:fPropertyfTransactions:fCapitalfGainsfandfLosses,f§f1231,fandfRecapturefProvisionsf
Chapterf15:fThefDeductionfforfQualifiedfBusinessfIncomefforfNoncorporatefTaxpayersf
Chapterf16:fAccountingfPeriodsfandfMethodsf
Chapterf17:fCorporations:fIntroductionfandfOperatingfRulesf
Chapterf18:fCorporations:fOrganizationfandfCapitalfStructuref
Chapterf19:fCorporations:fDistributionsfNotfinfCompletefLiquidationf
Chapterf20:fCorporations:fDistributionsfinfCompletefLiquidationfandfanfOverviewfoffReorganizationsf
Chapterf21:fPartnerships:fFormation,fOperation,fandfBasisf
Chapterf22:fPartnerships:fDistributions,fTransferfoffInterests,fandfTerminationsf
Chapterf23:fSfCorporationsf
Chapterf24:fTaxesfinfthefFinancialfStatementsf
Chapterf25:fExemptfEntitiesf
Chapterf26:fMultistatefCorporatefTaxationf
Chapterf27:fTaxationfoffInternationalfTransactionsf
Chapterf28:fTaxfPracticefandfEthicsf
Chapterf29:fThefFederalfGiftfandfEstatefTaxesf
Chapterf30:fIncomefTaxationfoffTrustsfandfEstates




Pagef2

,Chapterf 01f 2025f -f Comprehensive
Answers are at the end of e
f f f f f f


ach chapterf




Indicatef whetherf thef statementf isf truef orf false.
f 1.fIffmorefIRSfauditsfarefproducingfafhigherfnumberfoffnof changefresults,fthisfindicatesfincreasedfcompliancefonfthefpartf
offtaxpayers.
True
False

f 2.fTheffirstfincomeftaxfonfindividualsf(afterfthefratificationfoffthefSixteenthfAmendmentftofthefConstitution)fleviedftaxfrates
ffromfaflowfoff1%ftofafhighfoff6%.

True
False

f 3.fStealthftaxesfhavefthefeffectfoffgeneratingfadditionalftaxesffromfallftaxpayers.
True
False

f 4.fIfffraudfisfinvolved,ftherefisfnoftimeflimitfonfthefassessmentfoffafdeficiencyfbyfthefIRS.
True
False

f 5.fUnderfstatefamnestyfprograms,fallfdelinquentfandfunpaidfincomeftaxesfarefforgiven.
True
False

f 6.f Thef Federalf estatef andf giftf taxesf aref examplesf off progressivef ratef taxes.
True
False

f 7.fThefIRSfisfrequiredftofredeterminefthefinterestfratefonfunderpaymentsfandfoverpaymentsfoncefafyear.
True
False

f 8.fThefFederalfincomeftaxfonfindividualsfgeneratesfmorefrevenuefthanfthefFederalfincomeftaxfonfcorporations.
True
False

f 9.fTofmitigatefthefeffectfoffthefannualfaccountingfperiodfconcept,ftheftaxflawfpermitsfthefcarryforwardfoffexcessfcharit
ablefcontributionsfoffafparticularfyearftofotherfyears.
True
False

f 10.fUnlikefFICA,fFUTAfrequiresfthatfemployersfcomplyfwithfstatefasfwellfasfFederalfrules.
True
False




Pagef3

, Name: Class: Date:

Chapterf 01f 2025f -f Comprehensive

f 11.fIffafspecialfagentfbecomesfinvolvedfinfthefauditfoffafreturn,fthisfindicatesfthatfthefIRSfsuspectsfthatffraudfisfinvolve
d.
True
False

f 12.fTwofpersonsfwhoflivefinfthefsamefstatefbutfinfdifferentfcountiesfmayfnotfbefsubjectftofthefsamefgeneralfsalesftaxfrat
e.
True
False

f 13.fUnderfthefusualfstatefinheritanceftax,ftwofheirs,fafcousinfandfafsonfoffthefdeceased,fwouldfnotfbeftaxedfatfthefsamef
rate.
True
False

f 14.fVariousftaxfprovisionsfencouragefthefcreationfoffcertainftypesfoffretirementfplans.fSuchfprovisionsfcanfbefjustifi
edfonfbothfeconomicfandfsocialfgrounds.
True
False

f 15.fAfparentfemploysfherftwinfdaughters,fagef17,finfherfsolefproprietorship.fThefdaughtersfarefnotfsubjectftofFICAfcovera
ge.
True
False

f 16.fForfomissionsffromfgrossfincomefinfexcessfoff25%foffthatfreported,ftherefisfnofstatutefofflimitationsfonfaddition
alfincomeftaxfassessmentsfbyfthefIRS.
True
False

f 17.fNotfallfoffthefstatesfthatfimposefafgeneralfsalesftaxfalsofhavefafuseftax.
True
False

f 18.fStatesfimposefeitherfafstatefincomeftaxf orfafgeneralfsalesftax,fbutfnotfbothftypesfofftaxes.
True
False

f 19.fThefamountfoffthefstatefexciseftaxesfonfgasolinefvariesffromfstateftofstate.
True
False

f 20.fUponfauditfbyfthefIRS,fFaithfisfassessedfafdeficiencyfoff$40,000foffwhichf$25,000fisfattributableftofnegligence.
Thef20%fnegligencefpenaltyfwillfapplyftof$25,000.
True
False




Pagef4