1.

What is a Notice of Federal Tax Lien?

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A deficiency notice, which gives the taxpayer 90 days to file a Tax Court petition.

The notice sent to the taxpayer advising of imminent property seizure by the IRS.

A CP 504 notice indicating the IRS intends to levy to collect the balance due.

A legal claim to a taxpayer's property, which is filed by the IRS to secure payment of the taxpayer's tax debt.

2.

In the tax year, Riley's home was destroyed by fire. His adjusted basis in the home at the time of the fire was $120,000. The home was worth $200,000 before the fire and $0 after the fire. What is the amount of Riley's casualty loss (before reduction for insurance or other compensation)?

$108,000

$120,000

$200,000

Not enough information to answer this question.

3.

Why is it important to know what ministerial services are for a member of the clergy?

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	The wages of clergy who perform ministerial services are not included in gross income.
	Earnings from ministerial services are subject to SE tax, unless the member of the clergy has an exemption.
	Earnings from ministerial services are automatically exempt from SE tax.
	A member of the clergy who performs ministerial services pays social security and medicare taxes under FICA.