Test Bank For South-Western Federal Taxation 2022 Individual Income Taxes
45th Edition by James C. Young, Annette Nellen
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TEST BANK FOR
South-Western Federal Taxation 2022 Individual Income Taxes, 45th Edition
Chapter 1-20
Name: Class: Date:
chapter 1
Indicate whether the statement is true or false.
1. If a special agent becomes involved in the audit of a return, this indicates that the IRS suspects that fraud is involved.
a. True
b. False
2. To lessen or eliminate the effect of multiple taxation, a taxpayer who is subject to both foreign and U.S. income taxes
on the same income is allowed either a deduction or a credit for the foreign tax paid.
a. True
b. False
3. On occasion, Congress has to enact legislation that clarifies the tax law in order to change a result reached by the U.S.
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,Supreme Court.
a. True
b. False
4. No state may offer an income tax amnesty program more than once.
a. True
b. False
5. When interest is charged on a deficiency, any part of a month counts as a full month.
a. True
b. False
6. Stealth taxes have the effect of generating additional taxes from all taxpayers.
a. True
b. False
7. The amount of a taxpayer’s itemized deductions will increase the chance of being audited by the IRS.
a. True
b. False
8. The majority of IRS audits are handled by correspondence.
a. True
b. False
9. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies no
such taxes.
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, a. True
b. False
10. The civil fraud penalty can entail large fines and possible incarceration.
a. True
b. False
11. As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the
amount of the standard deduction allowed to individual taxpayers.
a. True
b. False
12. To mitigate the effect of the annual accounting period concept, the tax law permits the carryforward of excess
charitable contributions of a particular year to other years.
a. True
b. False
13. There is a Federal excise tax on hotel occupancy.
a. True
b. False
14. Currently, the tax base for the Social Security component of the FICA is not limited to a dollar amount.
a. True
b. False
15. Currently, the Federal corporate income tax is less progressive than the individual income tax.
a. True
b. False
16. The Federal excise tax on gasoline is an example of a proportional tax.
a. True
b. False
17. The tax law provides various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain
Copyright Cengage Learning. Powered by Cognero. Page 4
45th Edition by James C. Young, Annette Nellen
Copyright Cengage Learning. Powered by Cognero. Page 1
, This Is A Test Bank Of Test (Study Questions) To Help You Prepare For the Tests
To Clarify, This Is A Test Bank, Not A Textbook You Have Immediate
Access To Download Your Test Bank.
No Delays In Loading Is Fast And Instant Immediately After Purchase! You Will
Receive A Full Bank Of Tests, In Other Words, All Chapters Will Be There.
Test Banks Are Presented In PDF Format Therefore, No Special Software
Is Required To Download Them
TEST BANK FOR
South-Western Federal Taxation 2022 Individual Income Taxes, 45th Edition
Chapter 1-20
Name: Class: Date:
chapter 1
Indicate whether the statement is true or false.
1. If a special agent becomes involved in the audit of a return, this indicates that the IRS suspects that fraud is involved.
a. True
b. False
2. To lessen or eliminate the effect of multiple taxation, a taxpayer who is subject to both foreign and U.S. income taxes
on the same income is allowed either a deduction or a credit for the foreign tax paid.
a. True
b. False
3. On occasion, Congress has to enact legislation that clarifies the tax law in order to change a result reached by the U.S.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Supreme Court.
a. True
b. False
4. No state may offer an income tax amnesty program more than once.
a. True
b. False
5. When interest is charged on a deficiency, any part of a month counts as a full month.
a. True
b. False
6. Stealth taxes have the effect of generating additional taxes from all taxpayers.
a. True
b. False
7. The amount of a taxpayer’s itemized deductions will increase the chance of being audited by the IRS.
a. True
b. False
8. The majority of IRS audits are handled by correspondence.
a. True
b. False
9. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies no
such taxes.
Copyright Cengage Learning. Powered by Cognero. Page 3
, a. True
b. False
10. The civil fraud penalty can entail large fines and possible incarceration.
a. True
b. False
11. As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the
amount of the standard deduction allowed to individual taxpayers.
a. True
b. False
12. To mitigate the effect of the annual accounting period concept, the tax law permits the carryforward of excess
charitable contributions of a particular year to other years.
a. True
b. False
13. There is a Federal excise tax on hotel occupancy.
a. True
b. False
14. Currently, the tax base for the Social Security component of the FICA is not limited to a dollar amount.
a. True
b. False
15. Currently, the Federal corporate income tax is less progressive than the individual income tax.
a. True
b. False
16. The Federal excise tax on gasoline is an example of a proportional tax.
a. True
b. False
17. The tax law provides various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain
Copyright Cengage Learning. Powered by Cognero. Page 4
