Test Bank For South-Western Federal
Taxation:Comprehensive, 48th Edition By
Young/Persellin Isbn; 9780357988817, All
Chapters
,
,Chapter 01 2025 - Comprehensive
Indicate Whether The Statement Is True
Or False.
1. If More Irs Audits Are Producing a Higher Number Of No Change Results, This Indicates Increased
Compliance On The Part Of Taxpayers.
True
False
2. The First Income Tax On Individuals (After The Ratification Of Athe Sixteenth Amendment To
The Constitution) Levied Tax Rates From a Low Of 1% To a High Of 6%.
True
False
3. Stealth Taxes Have The Effect Of Generating Additional Taxes From All Taxpayers.
True
False
4. If Fraud Is Involved, There Is No Time Limit On The Assessment Of a Deficiency By The
Irs. True
False
5. Under State Amnesty Programs, All Delinquent And Unpaid Income Taxes Are Forgiven.
True
False
6. The Federal Estate And Gift Taxes Are Examples Of Progressive Rate Taxes.
True
False
7. The Irs Is Required To Redetermine The Interest Rate On Underpayments And Overpayments Once a Year.
True
False
8. The Federal Income Tax On Individuals Generates More Revenue Than The Federal Income Tax
On Corporations.
True
False
9. 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.
True
False
10. Unlike FICA, Futa Requires That Employers Comply With State As Well As Federal Rules.
True
False
Page 1
, 11. If a Special Agent Becomes Involved In The Audit Of a Return, This Indicates That The IRS
Suspects That Fraud Is Involved.
True
False
12. Two Persons Who Live In The Same State But In Different Counties May Not Be Subject To The
Same General Sales Tax Rate.
True
False
13. Under The Usual State Inheritance Tax, Two Heirs, a Cousin And a Son Of The Deceased, Would
Not Be Taxed At The Same Rate.
True
False
14. Various Tax Provisions Encourage The Creation Of Certain Types Of Retirement Plans.
Such Provisions Can Be Justified On Both Economic And Social Grounds.
True
False
15. A Parent Employs Her Twin Daughters, Age 17, In Her Sole Proprietorship. The Daughters Are Not
Subject To Fica Coverage.
True
False
16. For Omissions From Gross Income In Excess Of 25% Of That Reported, There Is No Statute
Of Limitations On Additional Income Tax Assessments By The IRS.
True
False
17. Not All Of The States That Impose a General Sales Tax Also Have a Use Tax.
True
False
18. States Impose Either a State Income Tax Or a General Sales Tax, But Not Both Types Of Taxes.
True
False
19. The Amount Of The State Excise Taxes On Gasoline Varies From State To State.
True
False
20. Upon Audit By The IRS, Faith Is Assessed a Deficiency Of $40,000 Of Which $25,000 Is Attributable
To Negligence.
The 20% Negligence Penalty Will Apply To $25,000.
True
False
Page 2
Taxation:Comprehensive, 48th Edition By
Young/Persellin Isbn; 9780357988817, All
Chapters
,
,Chapter 01 2025 - Comprehensive
Indicate Whether The Statement Is True
Or False.
1. If More Irs Audits Are Producing a Higher Number Of No Change Results, This Indicates Increased
Compliance On The Part Of Taxpayers.
True
False
2. The First Income Tax On Individuals (After The Ratification Of Athe Sixteenth Amendment To
The Constitution) Levied Tax Rates From a Low Of 1% To a High Of 6%.
True
False
3. Stealth Taxes Have The Effect Of Generating Additional Taxes From All Taxpayers.
True
False
4. If Fraud Is Involved, There Is No Time Limit On The Assessment Of a Deficiency By The
Irs. True
False
5. Under State Amnesty Programs, All Delinquent And Unpaid Income Taxes Are Forgiven.
True
False
6. The Federal Estate And Gift Taxes Are Examples Of Progressive Rate Taxes.
True
False
7. The Irs Is Required To Redetermine The Interest Rate On Underpayments And Overpayments Once a Year.
True
False
8. The Federal Income Tax On Individuals Generates More Revenue Than The Federal Income Tax
On Corporations.
True
False
9. 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.
True
False
10. Unlike FICA, Futa Requires That Employers Comply With State As Well As Federal Rules.
True
False
Page 1
, 11. If a Special Agent Becomes Involved In The Audit Of a Return, This Indicates That The IRS
Suspects That Fraud Is Involved.
True
False
12. Two Persons Who Live In The Same State But In Different Counties May Not Be Subject To The
Same General Sales Tax Rate.
True
False
13. Under The Usual State Inheritance Tax, Two Heirs, a Cousin And a Son Of The Deceased, Would
Not Be Taxed At The Same Rate.
True
False
14. Various Tax Provisions Encourage The Creation Of Certain Types Of Retirement Plans.
Such Provisions Can Be Justified On Both Economic And Social Grounds.
True
False
15. A Parent Employs Her Twin Daughters, Age 17, In Her Sole Proprietorship. The Daughters Are Not
Subject To Fica Coverage.
True
False
16. For Omissions From Gross Income In Excess Of 25% Of That Reported, There Is No Statute
Of Limitations On Additional Income Tax Assessments By The IRS.
True
False
17. Not All Of The States That Impose a General Sales Tax Also Have a Use Tax.
True
False
18. States Impose Either a State Income Tax Or a General Sales Tax, But Not Both Types Of Taxes.
True
False
19. The Amount Of The State Excise Taxes On Gasoline Varies From State To State.
True
False
20. Upon Audit By The IRS, Faith Is Assessed a Deficiency Of $40,000 Of Which $25,000 Is Attributable
To Negligence.
The 20% Negligence Penalty Will Apply To $25,000.
True
False
Page 2
