18. Hunter owns his own business and has done several questionable things related to filing tax returns. He is under investigation by the IRS. Which of the following statements below describes what Hunter may do to avoid the penalty for disregard of rules and regulations? a) Hunter can avoid the penalty if he calls the IRS b) Hunter can avoid the penalty if he sends a letter to the IRS c) Hunter can avoid the penalty if he contacts his CPA d) Hunter can avoid the penalty he adequately disclosed on his return a position that has at least a reasonable basis 19. Bill is a waiter at the local restaurant. report tips to his employer as required, he may be subject to a penalty equal to what percentage of the Social Security and Medicare taxes he owes on the unreported tips? He failed to report $1,000 in cash tips. Bill does not a) 20% b) 30% c) 60% d) 50% 20. Hunter has filed fraudulent tax returns resuting in significant underpayment of tax. What is the maximum penalty he could be assessed for these offenses? a) Additional penalty of 25% of the underpayment b) Additional penalty of 50% of the underpayment c) Additional penalty of 75% of the underpayment d) Additional penalty of 100% of the underpayment 21. Teresa married her husband Troy in July. Troy is currently paying back taxes owed to the IRS from three years ago. Teresa is a school teacher and spends at least $250 each year in supplies for her classroom; she is also still paying on student loans and paid $1,500 in student loan interest during the tax year. Teresa and Troy plan on fling a joint return for the tax year If Teresa and Troy are due a refund, what should she do that would entitle her to receive the portion of the refund that would be considered hers? a) Fle Form 8857 with their Form 1040 b) Fle Form 8379 with their Form 1040 c) She should call the IRS to let them know that she is not responsible for paying her husband's back taxes d) There is nothing she can do; she is also responsible for paying her husband's back taxes. 22. Jack has not filed his tax returns for the last five years, but believes he is due refunds for several of those years. If Jack was due a refund on any return not filed, he generally must file within how many years from the date the return was originally due to get that refund? a) 2 years b) 3 years c) 4 yeans d) 5 yeans