TEST BANK
South-Western Federal Taxation 2025: Comprehensive,
48th Edition by Young Complete 30 Chapters
TEST BANK
Pageg1
,TABLE OF CONTENTS
g g g
Chapterg1:gAngIntroductiongtogTaxationgandgUnderstandinggthegFederalgTaxgLawg
Chapterg2:gWorkinggwithgthegTaxgLawg
Chapterg3:gTaxgFormulagandgTaxgDeterminationg
Chapterg4:gGrossgIncome:gConceptsgandgInclusionsg
Chapterg5:gGrossgIncome:gExclusionsg
Chapterg6:gDeductionsgandgLosses:gIngGeneralg7-1gBadgDebtsg
Chapterg8:gDepreciation,gCostgRecovery,gAmortization,gandgDepletiong
Chapterg9:gDeductions:gEmployeegandgSelf-Employed-RelatedgExpensesg
Chapterg10:gDeductionsgandgLosses:gCertaingItemizedgDeductionsg
Chapterg11:gInvestorgLossesg
Chapterg12:gTaxgCreditsgandgPaymentsg
Chapterg13:gPropertygTransactions:gDeterminationgofgGaingorgLoss,gBasisgConsiderations,gandgNontaxabg
Chapterg14:gPropertygTransactions:gCapitalgGainsgandgLosses,g§g1231,gandgRecapturegProvisionsg
Chapterg15:gThegDeductiongforgQualifiedgBusinessgIncomegforgNoncorporategTaxpayersg
Chapterg16:gAccountinggPeriodsgandgMethodsg
Chapterg17:gCorporations:gIntroductiongandgOperatinggRulesg
Chapterg18:gCorporations:gOrganizationgandgCapitalgStructureg
Chapterg19:gCorporations:gDistributionsgNotgingCompletegLiquidationg
Chapterg20:gCorporations:gDistributionsgingCompletegLiquidationgandgangOverviewgofgReorganizationsg
Chapterg21:gPartnerships:gFormation,gOperation,gandgBasisg
Chapterg22:gPartnerships:gDistributions,gTransfergofgInterests,gandgTerminationsg
Chapterg23:gSgCorporationsg
Chapterg24:gTaxesgingthegFinancialgStatementsg
Chapterg25:gExemptgEntitiesg
Chapterg26:gMultistategCorporategTaxationg
Chapterg27:gTaxationgofgInternationalgTransactionsg
Chapterg28:gTaxgPracticegandgEthicsg
Chapterg29:gThegFederalgGiftgandgEstategTaxesg
Chapterg30:gIncomegTaxationgofgTrustsgandgEstates
Pageg2
,Chapterg 01g 2025g -g Comprehensive
Answersgaregatgthegendgof
geachgchapter
Indicateg whetherg theg statementg isg trueg org false.
g 1.gIfgmoregIRSgauditsgaregproducinggaghighergnumbergofgnog changegresults,gthisgindicatesgincreasedgcompliancegongt
hegpartgofgtaxpayers.
True
False
g 2.gThegfirstgincomegtaxgongindividualsg(aftergthegratificationgofgthegSixteenthgAmendmentgtogthegConstitution)gleviedgt
axgratesgfromgaglowgofg1%gtogaghighgofg6%.
True
False
g 3.gStealthgtaxesghavegthegeffectgofggeneratinggadditionalgtaxesgfromgallgtaxpayers.
True
False
g 4.gIfgfraudgisginvolved,gtheregisgnogtimeglimitgongthegassessmentgofgagdeficiencygbygthegIRS.
True
False
g 5.gUndergstategamnestygprograms,gallgdelinquentgandgunpaidgincomegtaxesgaregforgiven.
True
False
g 6.g Theg Federalg estateg andg giftg taxesgareg examplesg ofg progressiveg rateg taxes.
True
False
g 7.gThegIRSgisgrequiredgtogredeterminegtheginterestgrategongunderpaymentsgandgoverpaymentsgoncegagyear.
True
False
g 8.gThegFederalgincomegtaxgongindividualsggeneratesgmoregrevenuegthangthegFederalgincomegtaxgongcorporations.
True
False
g 9.gTogmitigategthegeffectgofgthegannualgaccountinggperiodgconcept,gthegtaxglawgpermitsgthegcarryforwardgofgexce
ssgcharitablegcontributionsgofgagparticulargyeargtogothergyears.
True
False
g 10.gUnlikegFICA,gFUTAgrequiresgthatgemployersgcomplygwithgstategasgwellgasgFederalgrules.
True
False
Pageg3
, Name: Class: Date:
Chapterg 01g 2025g -g Comprehensive
g 11.gIfgagspecialgagentgbecomesginvolvedgingthegauditgofgagreturn,gthisgindicatesgthatgthegIRSgsuspectsgthatgfraudgis
ginvolved.
True
False
g 12.gTwogpersonsgwhoglivegingthegsamegstategbutgingdifferentgcountiesgmaygnotgbegsubjectgtogthegsameggeneralgsale
sgtaxgrate.
True
False
g 13.gUndergthegusualgstateginheritancegtax,gtwogheirs,gagcousingandgagsongofgthegdeceased,gwouldgnotgbegtaxedgatg
thegsamegrate.
True
False
g 14.gVariousgtaxgprovisionsgencouragegthegcreationgofgcertaingtypesgofgretirementgplans.gSuchgprovisionsgcangbe
gjustifiedgongbothgeconomicgandgsocialggrounds.
True
False
g 15.gAgparentgemploysghergtwingdaughters,gageg17,ginghergsolegproprietorship.gThegdaughtersgaregnotgsubjectgtogFIC
Agcoverage.
True
False
g 16.gForgomissionsgfromggrossgincomegingexcessgofg25%gofgthatgreported,gtheregisgnogstatutegofglimitationsgong
additionalgincomegtaxgassessmentsgbygthegIRS.
True
False
g 17.gNotgallgofgthegstatesgthatgimposegaggeneralgsalesgtaxgalsoghavegagusegtax.
True
False
g 18.gStatesgimposegeithergagstategincomegtaxg orgaggeneralgsalesgtax,gbutgnotgbothgtypesgofgtaxes.
True
False
g 19.gThegamountgofgthegstategexcisegtaxesgonggasolinegvariesgfromgstategtogstate.
True
False
g 20.gUpongauditgbygthegIRS,gFaithgisgassessedgagdeficiencygofg$40,000gofgwhichg$25,000gisgattributablegtognegligence.
Theg20%gnegligencegpenaltygwillgapplygtog$25,000.
True
False
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