Please answer the following multiple questions.

CompletetheTaxation of Individuals and Business Entities, Ch. 1 Quiz

Taxation of Individuals and Business Entities, Ch. 2 Quiz.

Quiz 1 1 Taxes influence personal decisions such as whether to buy or rent a house. True A) False B) 2 Jerry recently paid $20 in tolls for the Florida turnpike. The $20 payment is considered a tax. True A) False B) 3 Taxes are voluntary payments paid to a government for a specific benefit received by the specific taxpayer. True A) False B) 4 The federal income tax is an example of a regressive tax system. True A) False B) 5 The marginal tax rate is often used in tax planning. True A) False B) 6 The gift tax is imposed on the fair market value of items transferred upon death. True A) False B) 7 The reduced pre-tax rate of return on municipal bonds is an example of an explicit tax. True A) False B) 8 Horizontal equity means that two taxpayers with different amounts of income should pay different amounts of tax but fairly in relation to their ability to pay. True A) False B) 9 Which of the following is considered a tax? Fees to register an automobile A) Speeding ticket B) Entrance fee for a national museum C) Local surcharge for a homeowner to connect to city sewer service D) 1% local surcharge on hotel rooms to pay for city government E) 10 Which of the following is an example of a progressive tax system? Social security tax A) A sales tax B) A proportional tax C) U.S. Federal Income Tax D) 11 Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2014, how much federal tax will he owe? $28,000 A) $21,175.75 B) $16,712.50 C) $25,000 D) None of the above E) 12 Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2014, what is his average tax rate (rounded)? 28.00% A) 16.72% B) 21.18% C) 25.00% D) None of the above E) 13 Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2014, what is his effective tax rate (rounded)? 15.00% A) 15.19% B) 21.62% C) 19.25% D) None of the above E) 14 Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. If Marc earned an additional $80,000, what would his 2014 marginal tax rate be on the $80,000 (rounded)? 28.00% A) 26.26% B) 32.48% C) 25.00% D) 15 James invests $100,000 in a city of Athens bond that pays 8% interest. Alternatively, James could have invested the $100,000 in a bond recently issued by HighTech, Inc. that pays 10% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 25%. Which bond should James should choose and why? The HighTech, Inc. bond because it earns a higher pre-tax rate of return A) The HighTech, Inc. bond because it earns a higher after-tax rate of return B) The city of Athens bond because it earns a higher pre-tax rate of return C) The city of Athens bond because it earns a higher after-tax rate of return D) James should be indifferent between the two bonds E) Quiz 2 1 The tax return filing requirements for individual taxpayers depend on the taxpayer's gross income. True A) False B) 2 The IRS information matching program checks each tax return for mathematical mistakes. True A) False B) 3 Field examinations are conducted by the IRS at the local IRS field office. True A) False B) 4 The "30-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S. District Court to hear the case. True A) False B) 5 U.S. District Courts appeal to U.S. Circuit Courts. True A) False B) 6 A textbook is an example of a primary authority. True A) False B) 7 Private Letter Rulings have less authoritative weight than Revenue Rulings. True A) False B) 8 Jackie's return was selected for audit because she did not report her salary (from her Form W-2 from her employer) on her tax return. Which IRS program likely identified Jackie's oversight? DIF System A) Document perfection B) Information matching C) Mathematical correction D) None of the above E) 9 Which of the following is not considered a primary authority? Supreme Court case A) Tax Law Review article B) Regulation C) Internal Revenue Code D) None of the above E) 10 Which of the following committees is not involved in enacting tax legislation? House Ways and Means Committee A) House Tax Committee B) Senate Finance Committee C) Joint Conference Committee D) 11 Which of the following has the highest authoritative weight? Internal Revenue Code A) Regulation B) Revenue Ruling C) Revenue Procedure D) Private Letter Ruling E) 12 Which of the following items is most commonly used to check the status of a court case? Private letter ruling A) Citator B) Revenue ruling C) Tax digest D) Determination letter E) 13 Which of the following is a type of common tax service used in tax research? Annotated tax service A) Antiquated tax service B) Analytical tax service C) Technical tax service D) All of the above E) 14 The Statements on Standards for Tax Services (SSTS) and Code of Professional Conduct provide professional standards for tax professionals and were issued by which of the following organizations? IRS A) AICPA B) Congress C) U.S. Treasury D) 15 Meeting which of the following standards for tax return positions would allow both taxpayers and tax practitioners to avoid a penalty with respect to a tax return position? Supreme authority A) Reasonably probable B) Significant authority C) Realistic possibility D) Substantial authority E)