12. Which of the following statements correctly describes the filing requirements for ins axpayers? a. All taxpayers must file income tax returns. b. Taxpayers who meet the filing threshold and have enough income must file income tax returns. e. Taxpayers who do not meet the filing threshold, but have income tax withheld from their paycheck should file to recover the withholding (get a refund of their withbeld tax) d. B and C are correct. 13. Which of the following statements correctly describes the filing requirements for individual taxpayers? a. The due date for individual income tax returns is the 15th day of the fourth month following the end of the tax year, and there is no extension of the time to file. b. The due date for individual income tax returns is the 15h day of the fourth month following the end of the tax year, and there is a six-month automatic extension of the time to file. c. The due date for individual income tax returns is always April 15, and there is no extension of the time to file. d. The due date for individual income tax returns is always April 15, and there is a six-month automatic extension of the time to file. 14. Which of the following best describes the relative precedential weight of these sources of tax authority? I. IRS final regulation II. Internal Revenue Code II1. private letter ruling iv. IRS proposed regulation b. II, III, IV, I 15. Which of the following best describes IRS regulations? a. Temporary regulations carry the same weight as proposed regulations. b. The IRS does not have the authority to issue regulations without permission from Congress. c. Interpretive regulations do not carry as much precedential value as legislative regulations. d. Final regulations are issued for public comment during the notice and comment period. 16. Which of the following best describes the legislative process for income tax legislation? a. Income tax legislation begins in the Senate. b. Income tax legislation begins in the House of Representatives. c. Income tax legislation begins in the Joint Conference Committee on Taxation. d. Income tax legislation begins in the White House with President Obama. 17. Which of the following best describes the federal court system in the United States? a. The courts of original jurisdiction for income tax cases are the District Court and the Tax Court. b. The Supreme Court hears all income tax cases that are appealed. c. An appeal from a court of original jurisdiction will be heard in any US Court of Appeal that the IRS or the taxpayer chooses. d. The taxpayer may choose which District Court he wants to hear his case. 18. Which of the following is a capital asset? The jewelry owned by a wealthy lady b. The tools used by self-employed carpenter c. Real estate lots owned by a realty company that is in the business of buying and selling real estate. d. A car used by a salesman for a pharmaceutical company 19. Which of the following assets held by a manufacturing business is not a Section a. Inventory 1231 asser? b. A machine used in the business and held more than one year c. A factory building used in the business and held more than one year d. Land used in the business and held more than one year 20. Sam operates a variety store as a sole proprietorship. Which of the following items are capital assets in the hands of Sam? a. The vacant lot next to his store that is used as a parking lot for his customers b. Sixteen bicycles that have been in the store's inventory for more than a year c. A note receivable that was given to him by a customer in payment of the customer's account at the store. d. None of the above. 21. Which of the following statements regarding qualified plans is the most accurate? a. More companies are adopting defined contribution plans than defined benefit plans today because defined contribution plans are less expensive to operate. b. Defined contribution plans place the investment risk on the participant, instead of on the employer c. Each particinant as a separate account in a defined contributon plan, and all rif on group in a defined benefit plan. d. All of the above are accurate statements regarding qualified plans. 22. Which of the following is correct regarding individual income t a. Employees usually pay their income tax through employers' withholding income tax from their paychecks. b. Self-employed individuals pay their income tax by paying estimated payments directly to the IRS. C. Self-employed individuals are responsible for paying 100% of the FICA tax (Social Security and Medicare taxes) as the self-employment tax in estimated payments and employees pay one-half of the FICA tax through withholding d. All of the above are correct. hospital administrator. Both are 55 years old. Their children are Pat and Pauline who are both dependents of Pam and Paul. Pat had income of $6,500 and Pauline made $3,200. Pam and Paul will file married filing jointly. They will take the standard deduction. Calculate their tax due for 2016. a. $24,087 b. $16,843 c. $20,937 d. $19,112 23. Pam's salary at First National Bank is $45,000. Her husband, Paul has a salary of $85,000 as a 24. Kyle, whose wife died in December 2015, filed a joint tax return for 2015. He did not remarry, but has continued to maintain his home in which his two dependent children live. What is Kyle's filing status as to a. Head of household b. Surviving spouse c. Single d. Married filing separately 25. As a general rule: Rental income from property is taxed to the person who owns the property II. Income from services is taxed to the person who does the work. ni. When income is assigned to a taxpayer, and the taxpayer does not own the property producing the income, the taxpayer must pay tax on the income. IV, when a taxpayer has access to employment income, such as income. a. I and II are true. b. I, II and III are true. c. I, II and IV are true. bonus payments, he must pay tax on that d. I, III and IV are true. 20 Which of the following best deseribes a qualified residence for purposes of determnining a taxpaysr deductible home mortgage interest expense? a. Only the taxpayer's principal residence. d. Any two residences chosen by the taxpayer. b. The taxpayer's principal residence and two other residences (chosen by the taxpayer). c. The taxpa other residence (chosen by the taxpayer). 27. Which of the following taxpayers may file as head of household in 2018? Ron provides all of the support of his mother, Betty, who lives by herself in an apartment in Fort Lauderdale. She has $3,500 in income during the year working in the public library. Tammy provides over one-half the support for her 18 year-old brother, Dan. Dan earned $4,500 in 2018 working at a fast food restaurant and is saving his money for college. Dan lives in the house with Tammy for the entire year. Joe's wife left his late in December of 2017. No legal action was taken and Joe has not heard from her in 2018. Joe supported his 6 year old son, who lived with him throughout 2018 a. Ron only. b. Tammy only c. Ron and Tammy only d. Ron, Tammy, and Joe