,DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th Editio
n n n n n n n n n n n
n Spilker n
Chapter 02 n n
Tax Compliance, the IRS, and Tax Authorities
n n n n n n
Truen/nFalsenQuestions
1. Corporations narenrequired nto nf ilenantax nreturnnannually nregardless nof ntheirntaxablenincome.
True False
2. Thentax nreturnnf iling nrequirements nf ornindividualntaxpayers nonly ndepend nonnthentaxpayer's nfiling
n status.
True False
3. If nantaxpayernis nduenanref und, nshendoes nnot nhavento nf ilenantax nreturn.
True False
4. If nApriln15thn f alls nonnanSaturday, nthenduendatenfornindividualntax nreturns nwillnbenonnMonday,nApril
n 17th.
True False
5. If nannindividualntaxpayernis nunablento nfilenantax nreturnnby nits noriginalnduendate, nthentaxpayerncan
n request nannautomatic n9-monthnextensionnto nf ilenthenreturn.
True False
6. Annextensionnto nf ilenantax nreturnndoes nnot nextend nthenduendatenf orntax npayments.
True False
2-1
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionn withoutnthenpriornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th Editio
n n n n n n n n n n n
n Spilker n
7. Thenstatutenof nlimitations nfornIRSnassessment ngenerally nends nfournyears nafternthendatenantax nreturn
n is nf iled.
True False
8. Fornf raudulent ntax nreturns, nthenstatutenof nlimitations nf ornIRSnassessment nis ntennyears.
True False
9. ThenIRSnDIFnsystemnchecks neachntax nreturnnf ornmathematicalnmistakes nand nerrors.
True False
10. Joelnreported nanhighnamount nofncharitablencontributions nas nandeductionnonnhis nindividualntax nreturn
n relativento ntaxpayers nwithnsimilarnincomenlevels. nTheninf ormationnmatching nprogramnis nthenIRSnpr
ogramnmost nlikely nto nidentif y nJoel's ntax nreturnnf ornaudit.
True False
11. Of f icenexaminations narenthenmost ncommonntypenof nIRSnaudit.
True False
12. Thenthreenbasic ntypes nof nIRSnexaminations narencomputernexams, nofficenexams, nand nbusiness
n exams.
True False
13. Then"30-
day" nletterngives nthentaxpayernthenopportunity ntonrequest nannappeals nconf erencenornagreento nanpro
posed nIRSnadjustment nonnthentaxpayer's nincomentax nreturn.
True False
2-2
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionn withoutnthenpriornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th Editio
n n n n n n n n n n n
n Spilker n
14. Then"90-
day" nletterngives nthentaxpayernthenopportunity ntonpay nanproposednIRSntax nadjustment nornfilenanpe
titionninnthenU.S. nDistrict nCourt nto ncontest nthenadjustment nand nhearnthencase.
True False
15. If nantaxpayernhas nlittlencashnand nanvery ntechnicalntax ncasenthat nshenfeels nvery nstronglynthat nthentax
n rules naren"onnhernside," nshenshould npref ernto nhavenherncasentried ninnthenU.S. nTax nCourt.
True False
16. Innresearching nantax nissue, nEric nf inds nthat nthenU.S. nCircuit nCourt nofnAppeals nfornthenFederalnCircuit
n previously nhas nruled ninnf avornofnhis ntax nposition, nwhereas nthen11thn Circuit n(Eric's ncircuit)npreviousl
y nhas nruled nagainst nhis ntax nposition. nIf nEric nis ncontemplating nlitigating nhis ntax npositionnwithnthenIRS
,nhenshould npref ernto nhavenhis ncasenf irst ntried nby nthenU.S. nTax nCourt.
True False
17. If nantaxpayernloses nancasenatnthenCircuit nCourt nlevel, nhenis ngranted nannautomatic nappealnhearing
n withnthenSupremenCourt.
True False
18. Secondary nauthorities narenof f icialnsources nof nthentax nlawnwithnanlessern"weight" nthannprimary
n authorities.
True False
19. Revenuenrulings nand nrevenuenprocedures narenexamples nof nprimary nauthorities.
True False
20. ThenInternalnRevenuenCodenand ntax ntreaties narenexamples nof nstatutory nauthorities.
True False
2-3
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionn withoutnthenpriornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
n n n n n n n n n n n
n Spilker n
Chapter 02 n n
Tax Compliance, the IRS, and Tax Authorities
n n n n n n
Truen/nFalsenQuestions
1. Corporations narenrequired nto nf ilenantax nreturnnannually nregardless nof ntheirntaxablenincome.
True False
2. Thentax nreturnnf iling nrequirements nf ornindividualntaxpayers nonly ndepend nonnthentaxpayer's nfiling
n status.
True False
3. If nantaxpayernis nduenanref und, nshendoes nnot nhavento nf ilenantax nreturn.
True False
4. If nApriln15thn f alls nonnanSaturday, nthenduendatenfornindividualntax nreturns nwillnbenonnMonday,nApril
n 17th.
True False
5. If nannindividualntaxpayernis nunablento nfilenantax nreturnnby nits noriginalnduendate, nthentaxpayerncan
n request nannautomatic n9-monthnextensionnto nf ilenthenreturn.
True False
6. Annextensionnto nf ilenantax nreturnndoes nnot nextend nthenduendatenf orntax npayments.
True False
2-1
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionn withoutnthenpriornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th Editio
n n n n n n n n n n n
n Spilker n
7. Thenstatutenof nlimitations nfornIRSnassessment ngenerally nends nfournyears nafternthendatenantax nreturn
n is nf iled.
True False
8. Fornf raudulent ntax nreturns, nthenstatutenof nlimitations nf ornIRSnassessment nis ntennyears.
True False
9. ThenIRSnDIFnsystemnchecks neachntax nreturnnf ornmathematicalnmistakes nand nerrors.
True False
10. Joelnreported nanhighnamount nofncharitablencontributions nas nandeductionnonnhis nindividualntax nreturn
n relativento ntaxpayers nwithnsimilarnincomenlevels. nTheninf ormationnmatching nprogramnis nthenIRSnpr
ogramnmost nlikely nto nidentif y nJoel's ntax nreturnnf ornaudit.
True False
11. Of f icenexaminations narenthenmost ncommonntypenof nIRSnaudit.
True False
12. Thenthreenbasic ntypes nof nIRSnexaminations narencomputernexams, nofficenexams, nand nbusiness
n exams.
True False
13. Then"30-
day" nletterngives nthentaxpayernthenopportunity ntonrequest nannappeals nconf erencenornagreento nanpro
posed nIRSnadjustment nonnthentaxpayer's nincomentax nreturn.
True False
2-2
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionn withoutnthenpriornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th Editio
n n n n n n n n n n n
n Spilker n
14. Then"90-
day" nletterngives nthentaxpayernthenopportunity ntonpay nanproposednIRSntax nadjustment nornfilenanpe
titionninnthenU.S. nDistrict nCourt nto ncontest nthenadjustment nand nhearnthencase.
True False
15. If nantaxpayernhas nlittlencashnand nanvery ntechnicalntax ncasenthat nshenfeels nvery nstronglynthat nthentax
n rules naren"onnhernside," nshenshould npref ernto nhavenherncasentried ninnthenU.S. nTax nCourt.
True False
16. Innresearching nantax nissue, nEric nf inds nthat nthenU.S. nCircuit nCourt nofnAppeals nfornthenFederalnCircuit
n previously nhas nruled ninnf avornofnhis ntax nposition, nwhereas nthen11thn Circuit n(Eric's ncircuit)npreviousl
y nhas nruled nagainst nhis ntax nposition. nIf nEric nis ncontemplating nlitigating nhis ntax npositionnwithnthenIRS
,nhenshould npref ernto nhavenhis ncasenf irst ntried nby nthenU.S. nTax nCourt.
True False
17. If nantaxpayernloses nancasenatnthenCircuit nCourt nlevel, nhenis ngranted nannautomatic nappealnhearing
n withnthenSupremenCourt.
True False
18. Secondary nauthorities narenof f icialnsources nof nthentax nlawnwithnanlessern"weight" nthannprimary
n authorities.
True False
19. Revenuenrulings nand nrevenuenprocedures narenexamples nof nprimary nauthorities.
True False
20. ThenInternalnRevenuenCodenand ntax ntreaties narenexamples nof nstatutory nauthorities.
True False
2-3
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionn withoutnthenpriornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
