Multiple Choice Questions
1. Eddie, a single taxpayer, has W-2 income of $49,487. Using the tax tables, he has determined that his tax liability is:
a. $8,225.
b. $6,514.
c. $5,688.
d. $4,991.
2. Arno and Bridgette are married and have combined W-2 income of $89,361. They received a refund of $128 when they filed their taxes. How much income tax did their employers withhold during the year?
a. $9,582.
b. $9,454.
c. $9,326.
d. The answer cannot be determined with the information provided.
3. Which of the following is (are) primary sources of tax authority?
a. Statutory sources.
b. Administrative sources.
c. Judicial sources.
d. All of the above.
4. Which of the following is a statutory source of tax authority?
a. Internal Revenue Code.
b. Regulations.
c. Revenue Rulings.
d. Tax Court decision.
5. Which of the following types of IRS Regulations have the greatest strength of authority?
a. General or Final Regulations.
b. Legislative Regulations.
c. Proposed Regulations.
d. Temporary Regulations.
6. Which of the following refers to an income tax regulation?
a. Reg. §1.162-5.
b. Reg. §20.2032-1.
c. Reg. §25.2503-4.
d. Reg. §31.3301-1.
7. Which of the following trial court(s) hear tax cases?
a. U.S. Tax Court.
b. U.S. district courts.
c. U.S. Court of Federal Claims.
d. All of the above.
8. A preparer tax identification number must be obtained by
a. Only CPA’s, attorneys, and enrolled agents.
b. Only individuals who are not CPA’s, attorneys or enrolled agents.
c. Any individual who is paid to prepare a tax return.
d. Only individuals who prepare a Form 1040EZ.
9. A paid preparer must not
a. Cash a client’s IRS check.
b. Charge a reasonable fee.
c. Inform a client if the preparer makes a mistake on the client’s tax return.
d. Provide a client with a copy of his or her return.
10. A paid preparer must:
a. Ignore a conflict of interest when representing a client before the IRS.
b. Charge a contingent fee.
c. Sign all tax returns they prepare.
d. Provide records requested by the IRS in all circumstances.