Multiple Choice Question and answers
100% correct
William, a taxpayer, timely mailed his tax return. However, it was returned for
insufficient postage. IRS imposed a penalty. Can William claim waiver of
penalty?
a.
Yes, William can claim waiver of penalty since it is his first tax return.
b.
Yes, William can claim waiver since the failure to file tax return is due to a
reasonable cause.
c.
No, William cannot claim waiver since it is a case of willful neglect.
d.
No, William cannot claim waiver of penalty as he is a delinquent taxpayer. -
correct answer b.
Yes, William can claim waiver since the failure to file tax return is due to a
reasonable cause.
If a taxpayer fails to file her return due to willful neglect, the minimum penalty
is:
a.
25 percent or 5 months cumulative penalty
,b.
lesser of $205 or the full amount of taxes that are required to be shown on the
return
c.
15 percent monthly penalty
d.
lesser of $135 or the full amount of taxes that are required to be shown on the
return - correct answer d.
lesser of $135 or the full amount of taxes that are required to be shown on the
return
Which of the following would lead to imposition of civil penalties?
a.
violation of civil protocols
b.
violation of tax laws as a result of negligence
c.
violation of tax statutes due to reasonable cause
d.
violation of social rules and norms - correct answer b.
,violation of tax laws as a result of negligence
The burden of proof in a fraud case is on the:
a.
taxpayer
b.
tax court
c.
IRS
d.
tax practitioner - correct answer c.
IRS
A tax return preparer (TRP) is:
a.
a CPA as required by the IRS
b.
not subject to any kind of penalty as he/she prepares returns on behalf of
taxpayers
, c.
any person who prepares tax returns gratuitously
d.
any person who prepares tax returns for compensation - correct answer d.
any person who prepares tax returns for compensation
.The statute of limitations refers to a:
a.
set of provisions that limits a tax return preparer's rights
b.
specific period of time within which returns must be filed
c.
set of provisions that limits a taxpayer's rights
d.
specific period of time within which all taxes must be assessed and collected,
and all refund claims must be made - correct answer d.
specific period of time within which all taxes must be assessed and collected,
and all refund claims must be made
The Commissioner of the Internal Revenue Service (IRS) is appointed by the:
a.
100% correct
William, a taxpayer, timely mailed his tax return. However, it was returned for
insufficient postage. IRS imposed a penalty. Can William claim waiver of
penalty?
a.
Yes, William can claim waiver of penalty since it is his first tax return.
b.
Yes, William can claim waiver since the failure to file tax return is due to a
reasonable cause.
c.
No, William cannot claim waiver since it is a case of willful neglect.
d.
No, William cannot claim waiver of penalty as he is a delinquent taxpayer. -
correct answer b.
Yes, William can claim waiver since the failure to file tax return is due to a
reasonable cause.
If a taxpayer fails to file her return due to willful neglect, the minimum penalty
is:
a.
25 percent or 5 months cumulative penalty
,b.
lesser of $205 or the full amount of taxes that are required to be shown on the
return
c.
15 percent monthly penalty
d.
lesser of $135 or the full amount of taxes that are required to be shown on the
return - correct answer d.
lesser of $135 or the full amount of taxes that are required to be shown on the
return
Which of the following would lead to imposition of civil penalties?
a.
violation of civil protocols
b.
violation of tax laws as a result of negligence
c.
violation of tax statutes due to reasonable cause
d.
violation of social rules and norms - correct answer b.
,violation of tax laws as a result of negligence
The burden of proof in a fraud case is on the:
a.
taxpayer
b.
tax court
c.
IRS
d.
tax practitioner - correct answer c.
IRS
A tax return preparer (TRP) is:
a.
a CPA as required by the IRS
b.
not subject to any kind of penalty as he/she prepares returns on behalf of
taxpayers
, c.
any person who prepares tax returns gratuitously
d.
any person who prepares tax returns for compensation - correct answer d.
any person who prepares tax returns for compensation
.The statute of limitations refers to a:
a.
set of provisions that limits a tax return preparer's rights
b.
specific period of time within which returns must be filed
c.
set of provisions that limits a taxpayer's rights
d.
specific period of time within which all taxes must be assessed and collected,
and all refund claims must be made - correct answer d.
specific period of time within which all taxes must be assessed and collected,
and all refund claims must be made
The Commissioner of the Internal Revenue Service (IRS) is appointed by the:
a.
