1. Is our current tax system considered fair and equitable? Explain. 2. Peter was audited by the IRS and audit adjustment of 50,000 was made. On appeal to IRS, the appeals officer held against peter. What are peters options to further appeal the IRS decision? 3. Explain why paying a dividend is not an effective way to shift income from a corporation to its owners? 4. In 2016, Jane earned 100, 000 from consulting services. Prior to receiving the payment, June directed the client to pay her son rather than her. Will the request be honored by the IRS upon audit? Explain. 5. If a taxpayer has a choice of taking a tax deduction versus taking a tax credit, which of the two will result in a lower tax liability? Explain. 6. Maria lives at home with her daughter for all of 2015. In 2013, Maria and her husband peter were divorced. Which filling status will produce the lowest tax liability for Maria when she files her 2015 tax return? 7. Joe manages a division of ABC Inc. Where he is the division president. He received a 200, 000 bonus from his employer in 2015 based on the earning the return 50, 000 of his bonus to ABC, Inc. What are the tax consequences to Joe in 2016 as a result of retuning 50, 000 of his bonus? 8. Peter, age 68, purchased an annuity from an insurance company that will pay him 20, 000 a year for the next 15 years. Peter paid the insurance company 190, 000 for annuity. How much of each 20, 000 payment should he included in his gross income?