Question
In tax year 2019 taxpayer had taxable income of $100,000 and paid tax of $18,080. In 2020 taxpayer, who is single, had taxable income of
-
In tax year 2019 taxpayer had taxable income of $100,000 and paid tax of $18,080. In 2020 taxpayer, who is single, had taxable income of $150,000 and paid tax of $30,021. What is taxpayers Marginal Tax Rate for 2020? Round your response to two decimal places
25.00%
24.00%
23.88%
Cannot be calculated with the given data
4 points
QUESTION 2
-
Under the check the box regulations, a Limited Liability Company (LLC) is allowed to elect to be taxed as a trust.
True
False
4 points
QUESTION 3
-
Which of the following is a secondary source of tax law?
IRS Frequently Asked Question Document
A Revenue Ruling
The Internal Revenue Code
A Revenue Procedure
4 points
QUESTION 4
-
In which of the following circumstances would a 6 year statute of limitations apply?
Taxpayer filed a return with an item of missing income. The omitted item was 10% of the gross income reported on the return. There was intention to commit fraud.
Taxpayer filed a return with an item of missing income. The omitted item was 10% of the gross income reported on the return. There was no intention to commit fraud.
Taxpayer filed a return with an item of missing income. The omitted item was 30% of the gross income reported on the return. There was no intention to commit fraud.
Taxpayer filed a return with an item of missing income. The omitted item was 30% of the gross income reported on the return. There was intention to commit fraud.
4 points
QUESTION 5
-
Which of the following is not a limitation on deductions per Sec. 162?
Amounts cannot be unreasonable
Deduction must be paid in cash before recognition
Deductions must be necessary for the business
Items must be ordinary
4 points
QUESTION 6
-
Which of the following is a nondeductible expense in tax year 2021?
Investment management fees
Meals
Travel
Mileage
4 points
QUESTION 7
-
Which of the following is a requirement for something to be considered a tax?
Payment must be made in cash
Payment is required
Payment is due on the 15th of the third month after year end
Payment is based on the value of property
4 points
QUESTION 8
-
Which of the following is an example of a graduated tax?
Federal payroll tax
Texas Franchise tax
Sales tax
Marginal tax
4 points
QUESTION 9
-
Which of the following courts has the lowest authoritative weight?
Appellate Court for a district the taxpayer does not live
Tax Court
Appellate Court for the district in which the taxpayer lives
Supreme Court
4 points
QUESTION 10
-
What is the initial filing deadline for a calendar year C Corporation?
June 15
April 15
March 15
May 15
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started