Question
Please help me and answer all questions 15. In apportioning income to various states for tax reporting purposes, which factor is taken into account? a.
Please help me and answer all questions
15. In apportioning income to various states for tax reporting purposes, which factor is taken into account?
a. Payroll Factor
b. Property Factor
c. Sales Factor
d. All of the above
16. Each State applies their own formula for apportioning income to that relative State. The types of formulas which may be used for apportioning purposes include(s):
a. 1) Sales factor; 2) Sales factor double-weighted; 3) Sales factor equally weighted with property and payroll
b. 1) Sales factor; 2) Sales factor double-weighted.
c. Sales factor only.
d. Sales factor double-weighted only
17. The most commonly used state income tax apportionment formula is:
a. Sales factor only.
b. Sales factor double-weighted.
c. Sales factor equally weighted with property and payroll.
d. Payroll factor only.
18. Public Law 86-272:
a. Was written by the Multistate Tax Commission.
b. Provides nexus definitions for sales of stocks and bonds.
c. Provides nexus definitions for the sale of medical and legal services.
d. Was adopted by Congress.
19. Section 482 is used by the IRS to:
a. Force taxpayers to use arms-length transfer pricing on transactions between related parties to clearly reflect income.
b. Help the taxpayer to minimize his/her tax liability.
c. Increase information that is reported about U.S. corporations with non-U.S. owners.
d. All of these.
20. If the IRS is successful under an IRC 482 claim, they may impose an accuracy-related penalty of:
a. 5%
b. 10%
c. 20%
d. 25%
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