FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Tax Practice and Ethics

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Essay

Review LaterAdd Note

Review Later

Troy Center Ltd.withheld from its employees' paychecks $200,000 in Federal income and Social Security taxes for the Monday,June 30 payroll.It then spent the $200,000 on equipment upgrades,missing altogether the August 2 due date for the tax remittances.How much does Troy now owe the government in taxes and penalties? Ignore interest accruals,and assume that the Treasury can prove that Troy's redirecting of the tax withholdings was willful.

Correct Answer

verified

Payroll withholdings of $100,000 or more...

View Answer

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return.The statute of limitations for Keepert's return is six years.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Circular 230 allows a tax preparer to:

If the taxpayer refuses to pay an assessed tax,the IRS can seize taxpayer property under the ____________________ process.

CPA Jennifer has heard about the AICPA's Statements on Standards for Tax Services.Although Jennifer is a licensed CPA in her state,she is not a member of the AICPA.How do the Statements affect Jennifer's tax practice?

Which of the following is subject to tax return preparer penalties?

An individual is not subject to an underpayment penalty until more than $____________________ is due and unpaid through estimated taxes. or

The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.

Certain individuals are more likely than others to have the Form 1040 audited by the IRS.List at least five factors that may increase above the national norms one's chances of audit.

After a tax audit,the taxpayer receives the Revenue Agent's Report as part of the "30-day letter."

After the completion of an audit,the taxpayer has ____________________ days to petition the Tax Court to modify the proposed tax due. or

Minnie,your tax client,has decided to dispute the Revenue Agent's Report.List and discuss at least four of your "next steps" as you prepare to represent Minnie concerning her tax issue within the IRS and in the courts.

A taxpayer can be subject to both ____________________ and ____________________ penalties for tax misconduct. or

The general statute of limitations regarding Federal tax returns extends for ____________________ years.It is ____________________ years if a substantial understatement of income is found,and ____________________ years with respect to worthless securities. or

The IRS can pay an informant's fee of up to ____________________% of the recovered tax,interest,and penalty amounts.The reward can be as high as ____________________% for information provided by a "whistle blower." or

Fiona,a VITA volunteer for her college's tax clinic,is exempted from the Code's tax preparer penalties.

It is advisable that an IRS audit be conducted at the office of the tax advisor,and not of the client.

Babs filed an amended return in 2013,claiming a refund relative to her 2011 tax computation.When the IRS approves the amended return,it will pay Babs interest with respect to the overpayment.

Which of the following statements is correct as to the conduct of IRS income tax audits?

Carole,a CPA,feels that she cannot act as an aggressive advocate for tax clients in today's environment.What aspects of the ethical conduct of a tax practice might have influenced Carole's attitude?