UCHAPTER 2 100% SOLVED QUESTIONS
AND ANSWERS
Which of the following criteria determine whether an individual must file a tax return? - gross income,
filing status, age
The gross income filing thresholds are calculated as the sum of which of the following criteria? - standard
deduction and additional deductions for taxpayers age 65 or older
T/F Self-employed individuals have lower gross income thresholds for tax filing than the general filing
requirements. - True
When a tax payer does NOT file her tax return or pay her tax due by the due date, she will be assessed
______ and _______ if she owed any tax for the year - interest/penalty
Sally has NOT completed her tax return and the due date is approaching. She estimates that she will owe
no more than $1,500, but she doesn't have time to finish her return by April 15th. She has decided to file
an extension. Which of the following statements describes what she needs to do when filling the
extension? - She should send in a $1,500 payment when filing the extension
The statute of limitations defines the period in which the taxpayer can file a(n) ________ tax return or
the IRS can assess a tax _______ for a specific year - amended; deficiency
There is no statute of limitations for _______ returns or failure to file - fraud
What is the gross income threshold for most taxpayers to determine whether a return is required to be
filed? - Sum of standard deduction, additional deductions for taxpayers age 65 or older, and personal
exemption(s)
The penalty for failing to file a tax return that would have a balance due from the taxpayer is _______ %
of the tax due for each month or partial month that the return is late. The maximum penalty is generally
____ % - 5; 25
T/F If an individual taxpayer discovers that he has a balance due on his tax return, but does NOT have the
money to pay the amount, he should file an extension in order to extend the date at which the
payament is required to be made - FALSE
When does the statute of limitations generally end for tax noncompliance when fraud is not a factor? - 3
years
What is the statute of limitations for tax returns where over 25% of gross income has been omitted in a
particular tax year? - 6 years
To where does a losing party in a trial level court appeal the decision? - U.S. Circuit Court of Appeal
AND ANSWERS
Which of the following criteria determine whether an individual must file a tax return? - gross income,
filing status, age
The gross income filing thresholds are calculated as the sum of which of the following criteria? - standard
deduction and additional deductions for taxpayers age 65 or older
T/F Self-employed individuals have lower gross income thresholds for tax filing than the general filing
requirements. - True
When a tax payer does NOT file her tax return or pay her tax due by the due date, she will be assessed
______ and _______ if she owed any tax for the year - interest/penalty
Sally has NOT completed her tax return and the due date is approaching. She estimates that she will owe
no more than $1,500, but she doesn't have time to finish her return by April 15th. She has decided to file
an extension. Which of the following statements describes what she needs to do when filling the
extension? - She should send in a $1,500 payment when filing the extension
The statute of limitations defines the period in which the taxpayer can file a(n) ________ tax return or
the IRS can assess a tax _______ for a specific year - amended; deficiency
There is no statute of limitations for _______ returns or failure to file - fraud
What is the gross income threshold for most taxpayers to determine whether a return is required to be
filed? - Sum of standard deduction, additional deductions for taxpayers age 65 or older, and personal
exemption(s)
The penalty for failing to file a tax return that would have a balance due from the taxpayer is _______ %
of the tax due for each month or partial month that the return is late. The maximum penalty is generally
____ % - 5; 25
T/F If an individual taxpayer discovers that he has a balance due on his tax return, but does NOT have the
money to pay the amount, he should file an extension in order to extend the date at which the
payament is required to be made - FALSE
When does the statute of limitations generally end for tax noncompliance when fraud is not a factor? - 3
years
What is the statute of limitations for tax returns where over 25% of gross income has been omitted in a
particular tax year? - 6 years
To where does a losing party in a trial level court appeal the decision? - U.S. Circuit Court of Appeal
