Solved by verified expert :28.28
Under
a state inheritance tax, two heirs, a cousin and a son of the deceased, would
be taxed at the same rate.
a.True
b. False
2929
The annual exclusion,
currently $13,000, is available for gift but not estate tax purposes.
a. True
b.False
30.30
In 2011, José, a widower,
sells land (fair market value of $100,000) to his daughter, Linda, for $50,000.
José has made a taxable gift of $37,000.
a. True
b.False
31.31
Julius, a married taxpayer,
makes gifts to each of his six children. A maximum of six annual exclusions
could be allowed as to these gifts.
a.True
b. False
3232
One of the
motivations for making a gift is to save on income taxes.
a.
True b. False
3333
The
formula for the Federal income tax on corporations is not the same as
that applicable to individuals.
a. True
b.False
34.
CHAPTER 1
A state
income tax can be imposed on nonresident taxpayers who earn
income within the
state or
on an itinerant basis.
a. True
b.False
35.
35
For state
income tax purposes, all states allow a deduction for Federal income taxes.
a.
True b. False
3636
Some
states use their state income tax return as a means of collecting unpaid sales
and use taxes.
a. True
b.False
37.37
No state
has offered an income tax amnesty program more than once.
a.True
b. False
3838
For
Federal income tax purposes, there never has been a general amnesty period.
a. True
b.False
39.39
Under state amnesty
programs, all delinquent and unpaid income taxes are forgiven.
a.True
b. False
4040
When
a state decouples from a Federal tax provision, it means that this provision
will not apply for state income tax purposes.
a. True
b.False
41.41
The
principal objective of the FICA tax is to provide some measure of retirement
security.
a. True
b.False
42.CHAPTER
Currently, the tax base for
the Medicare component of the FICA is not limited to a dollar amount.
a. True
b.False
43.CHAPTER 1
A parent
employs his twin daughters, age 19, in his sole proprietorship. The daughters
are
not
subject
to FICA coverage.
a.
True b. False
4444
Unlike FICA, FUTA requires
that employers comply with state as well as Federal rules.
a. True
b.False
45.45
A major
disadvantage of a flat tax type of income tax is its complexity.
a.True
b. False
4646
The value added tax (VAT)
has had wide acceptance in the international community.
a. True
b.False
47.
47
Recently,
more IRS audits are producing a greater number of no change results.
This indicates increased compliance on the part of taxpayers.
a.
True b. False
4848
The
amount of a taxpayer’s itemized deductions will increase the chance of
being audited by the IRS.
a. True
b.False
49.49
In a field
audit, the audit by the IRS takes place at the office of the IRS.
a.True
b. False
5050
The
IRS agent auditing the return will issue an RAR even if the taxpayer
owes no additional taxes.
a. True
b.False
51.51
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
52.52
If
a taxpayer files early (i.e., before the due date of the return), the statute
of limitations on assessments begins on the date the return is filed.
a.True
b. False
5353
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.
a.
True b. False
5454
If
an income tax return is not filed by a taxpayer, there is no statute of
limitations on assessments of tax by the IRS.
a. True
b.False
55.55
If fraud is involved, there
is no time limit on the assessment of a deficiency by the IRS.
a. True
b.False
