1. An entity is created on June 1, 2018. The entity does not start doing business until December 15, 2018. If the entity wants to be treated as an S-corporation for NYS and NYC purposes it must make an S-corporation by which of the following dates:

a. August 16, 2018 b. March 2, 2019 c. December 31, 2018 d. March 15, 2018 e. March 15, 2019 f. None of the Above

2. A NY resident purchases a plane in New Hampshire for $1,000,000.00. New Hampshire does not have a sales tax. One year later, the NY resident brings the plane into New York. At the time he brings the plane into the New York, the fair market value is $800,000.00. How much sales and/or use tax is due to New York on the airplane?

a. $40,000.00 assuming a 4% NY sales tax

b. $40,000.00 assuming a 4% NY use tax c. $35,000.00 assuming a 4% NY use tax

d. $38,000.00 assuming a 4% NY use tax e. None of the Above

3. A taxpayer can protest an assessment by doing which of the following:

a. File a petition with the Division of Tax Appeals b. Request a conciliation conference with the Bureau of Conciliation and Mediation

Services c. Wait ninety days, pay the assessment and then seek a refund

d. All of the above

4. For purposes of the fulfillment services exception for sales tax purposes, fulfillment

services includes which of the following: a. Billing and collection activity

b. Accepting orders via email c. Providing setup and delivery services of products maintained in a NY warehouse

d. Delivering orders of a NY vendor to in-state and out-of-state customers e. All of the above

f. Options A, B and C only g. Options A and B only

5. A married couple, both of whom are NY residents, go on vacation. Prior to their vacation, the husband purchases a necklace from a NY jeweler for delivery in Vermont at the hotel the couple is staying at. While on vacation in Vermont, the husband gives his wife the necklace as a present for their anniversary. The resident wife then returns to New York with the necklace. The sales and use tax is imposed on the transaction when:

a. The husband purchased the property from the NY jeweler b. When the NY resident wife returned to NY with the necklace

c. There is no sales or use tax due on the sale of the necklace nor when the necklace

was returned to New York

d. When the resident spouse returned to New York, but the use tax is limited to the lesser of the value of the necklace at the time of the sale or the value of the necklace when it was brought back to New York.

6. An individual reports $100,000 of gross income on his personal income tax return. The individual is audited by NYS for income tax purposes. The audit concludes with an assessment alleging that the taxpayer fraudulently failed to report an additional $30,000 of income. The statute of limitations to assess the taxpayer is:

a. There is no statute of limitations

b. Three Years c. Six Years

d. There is no time limit if a return is not filed

7. In which of the following circumstances does the three-year statute of limitations on

additional income tax assessments apply?

a. A taxpayer willfully attempts to evade tax in filing income tax returns.

b. A taxpayer inadvertently omits from gross income an amount in excess of 25% of

the gross income stated on the income tax return. c. A taxpayer inadvertently overstates deductions equal to 15% of gross income.

d. New York State files a substitute income tax return when it learns that a taxpayer

failed to file a return.

8. Which of the following statements is correct?

a. A company is required to withhold employment taxes from amounts paid to

independent contractors.

b. An accountant who performs an independent audit for a company is an employee

of the company.

c. All employers are required to withhold income and FICA from an employees

paycheck.

d. All employers are required to withhold income, FICA and FUTA from an

employees paycheck.

9. Wayfair v. South Dakota determined that in order for a State to impose the sales and use

tax the State must establish that the taxpayer:

a. Had a physical presence in the State which satisfies the Due Process Clause of the

U.S. constitution b. Had sufficient economic and virtual contacts with the State to satisfy the substantial

nexus requirement under the Commerce Clause of the U.S. constitution c. Had a physical presence in the State which satisfies the Due Process Clause and the

Commerce Clause of the U.S. constitution d. None of the above.

10. Which of the following would indicate that a worker is an independent contractor?

a. The worker needs to be trained by the payor in order to perform the services in a

particular manner. b. The worker needs to wear specific clothing approved by the payor while performing

the services c. The worker pays for all of the expenses/tools needed to complete the job

d. The worker provides his services to the general public

11. A customer purchases several items from a business in New York for $40.00. Two of items are taxable and are sold for $10.00 each. The other items are non-taxable. The receipt itemizes the sales of each item. How much sales tax is due assuming a sales tax rate of 4%.

a. 0.40 cents

b. $1.60.00 c. 0.80 cents

d. No sales tax is due

12. Which of the following statements is correct?

a. The source of wages is determined by the residence of the individual performing

the services b. The source of rental income is determined by the residence of the owner of the

property c. The source of dividends from investment stock is determined by the location of the

corporation. d. The source of gains on real property is generally determined by where the real

property is located.

13. Nancy is a New York domiciliary, who receives a job promotion from her New York based employer on December 15, 2013. As part of the job promotion, she is required to move to Denmark on December 16, 2013, where she will work at a bona fide office of her employers. Although she is moving to Denmark, she decides to keep her apartment in New York, which she will rent out on Craigslist. She stays in Denmark for the next 7 years. While she is there, she marries a Denmark citizen, has two children, owns a home in Denmark, and becomes a Denmark citizen. She visits New York occasionally each year for social events. From 2014-18, Nancy is in NY 30 days each year. In 2019, she is in NY for 31 days. Nancy however, always intends to return to New York after her stay in Denmark, which she eventually does on January 5, 2020.

Which of the following years is Nancy treated as a New York resident for NY income tax? a. 2013 and 2020 only

b. 2020 only c. 2019 only

d. 2013 to 2020 e. 2013, 2019 and 2020 only

14. Which of the following is not relevant for purposes of determining whether an individual

is a responsible person of a corporation?

a. An individuals status as an officer, director, or shareholder of a corporation

b. An individuals authorization to write checks on behalf of the corporation;

c. An individuals knowledge of and control over the financial affairs of the

corporation; d. None of the above

e. All of the above

15. In which of the following corporations will have nexus with New York State?

g. A limited partner in a NY partnership that owns a .5% interest in the

partnership and has a basis of $800,000 and the partnership has NY receipts in excess of $10 million h. A general partner in a NY partnership that has a basis of $800,000 in the

partnership and the NY partnership has NY receipts of $500,000 i. A limited partner in a NY partnership that owns a .5% interest in the

partnership and has a basis of $800,000 and the corporation itself has NY receipts of $400,000 and the partnership has NY receipts of $500,000 j. A general partner in a NJ partnership where the partnership sells $2 million in NY Receipts from the sale of tangible personal property into NYS but does not have any other connection with NYS. All orders are approved out of NYS and delivered to NYS from outside of NYS.

16. Which of the following statements is sufficient to create income tax nexus for a New York

Foreign corporation?

a. The maintenance of cash balances with banks or trust companies in New York; b. The maintenance of an office in New York by one or more officers or directors of the corporation who are not employees of the corporation if the corporation otherwise is not doing business in New York, and does not employ capital or own or lease property in New York; c. Advertising on a New York server or through a New York Internet service provider

having nexus with New York; d. A foreign corporation sends salesmen into New York to solicit orders. The orders must be accepted at the home office of the corporation located in another state. The corporation displays goods in New York City at a space leased occasionally and only for short periods of time.

17. Which of the following statements is insufficient to create income tax nexus for a New

York Foreign corporation?

a. A foreign corporation owns equipment in New York but all other activity is

performed in New Jersey

b. A foreign corporation owns real property in Brooklyn, but does not sell or provide

services to New York customers.

c. A foreign corporation maintains an office in Manhattan where sales orders are

taken. d. A foreign corporation has New York receipts of $500,000

18. Under PL 86-272, which of the following does not qualify as a mere solicitation or

orders:

a. Use of hotels and homes for sales-related meetings;

b. Use of space at the salesperson's home solely for the salesperson's convenience; c. Participation in a trade show or shows for not more than 14 days during the

corporations tax year for federal income tax purposes. d. Picking up or replacing damaged or returned property

19. A taxpayer files their 2011 income tax return on January 15, 2012. Thereafter, on January 15, 2015, the taxpayer receives an audit notice from New York State requesting documents on the deductions claimed by the taxpayer on his 2011 income tax return. You should:

a. Timely provide only those documents that are requested by the auditor and nothing

more.

b. Advise your client that the 3 year statute of limitations on assessments has expired

and therefore, he needs to do nothing.

c. Inform the auditor that the audit was performed within 120 days of the statute of

limitations expiring and that the audit is improper.

d. Do not provide documents because your client committed a fraud and you do not

want to precipitate a criminal prosecution.

20. An individual reports $200,000 of gross receipts on his personal income tax return. The individual is audited by NYS for income tax purposes. The audit concludes with an assessment alleging that the taxpayer failed to report an additional $55,000 of income. The statute of limitations to assess the taxpayer is:

a. Ten Years b. Three Years

c. Six Years d. There is no time limit if a return is not filed