QUESTION 10 Marital status is determined on the first day of an individual's taxable year. True False QUESTION 11 To protect against the negligence penalty for substantial understatement of the tax liability (without disclosure), the taxpayer's position must have substantial authority. True False QUESTION 12 Adjusted gross income is total income after subtracting all deductions. True False Question Completion Status: QUESTION 13 X and Y are the divorced parents of JR. The divorce was granted in June of 2020 and X was given custody, but Y has specific visitation rights. X provided $3,500 and Y provided $4,000 toward JR's total support of $7,900. Which of the following is true regarding who gets to claim JR as a dependent? Y is entitled to the dependent because Y provided more than 50 percent of JR's support. OY is entitled to the dependent if X signs an agreement waiving the right to claim JR as a dependent. O Y never entitled to claim JR as a dependent, no exceptions. X is always entitled to claim JR as a dependent, no exceptions. QUESTION 14 In which Federal trial court does a taxpayer waive his right to appeal if he loses? U.S. Tax Court Small Tax Division of the U.S. Tax Court U.S. District Court Bankruptcy Court of the U.S. District Court OU.S. Court of Appeals for the Federal Circuit Remaining Time: 1 hour, 50 minutes, 47 seconds. Question Completion Status: QUESTION 15 All of the following are considered flow-through entities except S corporations o corporations Sole proprietorships Partnerships QUESTION 16 Under the U.S. Constitution, revenue bills are initiated in the House of Representatives. True False QUESTION 17 A tax preparer was negligent in the preparation of a client's tax return. The client paid $600 in tax preparation fees. If the IRS assesses a penalty on the preparer, what would be the amount? $300 $600 $1,000 $1,200 o $2,000 QUESTION 18 Which of the following taxpayers may not use the cash method of accounting in the current year? A qualified personal service corporation in the engineering business having average annual gross receipts for the required period of $29,000,000 An individual with taxable income of $29,000,000. A regular corporation in the retail business with individuals as shareholders and having average annual gross receipts for the required period of $29,000,000 All taxpayers may use the cash method