Exam (elaborations)

Test Bank for South-Western Federal Taxation 2025: Comprehensive 2025 48e Young | | Complete Chapters.

0 purchase

Course
Taxation

Institution
Taxation

Test Bank for South-Western Federal Taxation 2025: Comprehensive 2025 48e Young | | Complete Chapters.Test Bank for South-Western Federal Taxation 2025: Comprehensive 2025 48e Young | | Complete Chapters.Test Bank for South-Western Federal Taxation 2025: Comprehensive 2025 48e Young | | Complete Ch...

[Show more]

Preview 4 out of 1138 pages

View example

Uploaded on September 17, 2024
Number of pages 1138
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

test bank for south western federal taxation 2025
south western federal taxation

Institution Taxation
Course Taxation

Wisdoms Member since 1 year 252 documents sold

199

$22.99

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

Test Bank for South-Western Federal Taxation 2025: Comprehensive 2025
r r r r r r r r

48eYoung r r

Chapter 01 2025 - Comprehensive
r r r r

Answers Included
✅
r

Indicate whether the statement is true or
r r r r r r

rfalse.
r r 1. If more IRS audits are producing a higher number of no change results, this indicates increased compliance onthe
r r r r r r r r r r r r r r r r r r r

part of taxpayers.
r r r

True
False

r r 2. The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution) leviedtax
r r r r r r r r r r r r r r r r r r

rates from a low of 1% to a high of 6%.
r r r r r r r r r r r

True
False

r r 3. Stealth taxes have the effect of generating additional taxes from all taxpayers.
r r r r r r r r r r r r

True
False

r r 4. If fraud is involved, there is no time limit on the assessment of a deficiency by the IRS.
r r r r r r r r r r r r r r r r r r

True
False

r r 5. Under state amnesty programs, all delinquent and unpaid income taxes are forgiven.
r r r r r r r r r r r r

True
False

r r 6. The Federal estate and gift taxes are examples of progressive rate taxes.
r r r r r r r r r r r r

True
False

r r 7. The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.
r r r r r r r r r r r r r r r r

True
False

r r 8. The Federal income tax on individuals generates more revenue than the Federal income tax on corporations.
r r r r r r r r r r r r r r r r

True
False

r r 9. To mitigate the effect of the annual accounting period concept, the tax law permits the carryforward of
r r r r r r r r r r r r r r r r r

excesscharitable contributions of a particular year to other years.
r r r r r r r r r r

True
False

r r 10. Unlike FICA, FUTA requires that employers comply with state as well as Federal rules.
r r r r r r r r r r r r r r

True
False

Page 1
r

,Name: Class: Date: r

Chapter 01 2025 -
r r r

Comprehensive
r

r r 11. If a special agent becomes involved in the audit of a return, this indicates that the IRS suspects that fraud
r r r r r r r r r r r r r r r r r r r r

isinvolved.
r r

True
False

r r 12. Two persons who live in the same state but in different counties may not be subject to the same general salestax
r r r r r r r r r r r r r r r r r r r r r r

rate. r

True
False

r r 13. Under the usual state inheritance tax, two heirs, a cousin and a son of the deceased, would not be taxed at thesame
r r r r r r r r r r r r r r r r r r r r r r r

rate. r

True
False

r r 14. Various tax provisions encourage the creation of certain types of retirement plans. Such provisions can
r r r r r r r r r r r r r r r

bejustified on both economic and social grounds.
r r r r r r r r

True
False

r r 15. A parent employs her twin daughters, age 17, in her sole proprietorship. The daughters are not subject to
r r r r r r r r r r r r r r r r r r

FICAcoverage.
r r

True
False

r r 16. For omissions from gross income in excess of 25% of that reported, there is no statute of limitations on
r r r r r r r r r r r r r r r r r r r

additional income tax assessments by the IRS.
r r r r r r r

True
False

r r 17. Not all of the states that impose a general sales tax also have a use tax.
r r r r r r r r r r r r r r r r

True
False

r r 18. States impose either a state income tax or a general sales tax, but not both types of taxes.
r r r r r r r r r r r r r r r r r r

True
False

r r 19. The amount of the state excise taxes on gasoline varies from state to state.
r r r r r r r r r r r r r r

True
False

r r 20. Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.
r r r r r r r r r r r r r r r r r r r

The 20% negligence penalty will apply to $25,000.
r r r r r r r

True
False

Page 2
r

,Name: Class: Date: r

Chapter 01 2025 -
r r r

Comprehensive
r

r r 21. The annual exclusion, currently $18,000, is available for gift and estate tax purposes.
r r r r r r r r r r r r r

True
False

r r 22. In preparing an income tax return, the use of a client’s estimates is not permitted.
r r r r r r r r r r r r r r r

True
False

r r 23. The ratification of the Sixteenth Amendment to the U.S. Constitution was necessary to validate the Federal
r r r r r r r r r r r r r r r r

income tax on corporations.
r r r r

True
False

r r 24. A major advantage of a flat tax type of income tax is its simplicity.
r r r r r r r r r r r r r r

True
False

r r 25. The value added tax (VAT) has not had wide acceptance in the international community.
r r r r r r r r r r r r r r

True
False

r r 26. An inheritance tax is a tax on a decedent’s right to pass property at death.
r r r r r r r r r r r r r r r

True
False

r r 27. The civil fraud penalty can entail large fines and possible incarceration.
r r r r r r r r r r r

True
False

r r 28. The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax
r r r r r r r r r r r r r r r r r r r

onbusiness use personalty.
r r r r

True
False

r r 29. A state income tax can be imposed on nonresident taxpayers who earn income within the state on an itinerant
r r r r r r r r r r r r r r r r r r r

basis.r

True
False

r r 30. In preparing a tax return, all questions on the return must be answered.
r r r r r r r r r r r r r

True
False

Page 3
r

, Name: Class: Date: r

Chapter 01 2025 -
r r r

Comprehensive
r

r r 31. For individual taxpayers, the interest rate for income tax refunds (overpayments) is the same as that applicableto
r r r r r r r r r r r r r r r r r r

assessments (underpayments).
r r

True
False

r r 32. During any month in which both the failure to file penalty and the failure to pay penalty apply, the failure to filepenalty
r r r r r r r r r r r r r r r r r r r r r r r

is increased by the amount of the failure to pay penalty.
r r r r r r r r r r r

True
False

r r 33. In 2024, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not
r r r r r r r r r r r r r r r r r r r r r

made a taxable gift.
r r r r

True
False

r r 34. Mona inherits her mother’s personal residence, which she converts to a furnished rental house. These
r r r r r r r r r r r r r r r

changesshould affect the amount of ad valorem property taxes levied on the properties.
r r r r r r r r r r r r r r

True
False

r r 35. If an income tax return is not filed by a taxpayer, there is no statute of limitations on assessments of tax by theIRS.
r r r r r r r r r r r r r r r r r r r r r r r r

True
False

r r 36. No state may offer an income tax amnesty program more than once.
r r r r r r r r r r r r

True
False

r r 37. When a state decouples from a Federal tax provision, it means that this provision will not apply for state incometax
r r r r r r r r r r r r r r r r r r r r r

purposes.
r

True
False

r r 38. The Medicare component of the FICA tax (1.45% on wages) is progressive as the tax due increases as wages
r r r r r r r r r r r r r r r r r r r

increase.
r

True
False

r r 39. The Federal excise tax on gasoline has a proportional effect on all taxpayers (that is, neither progressive
r r r r r r r r r r r r r r r r r

orregressive).
r r

True
False

Page 4
r

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Wisdoms. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $22.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Exam (elaborations)

Test Bank for South-Western Federal Taxation 2025: Comprehensive 2025 48e Young | | Complete Chapters.

Document information

Subjects

Written for

Seller

Reviews received

Content preview