Question 70.70. Which of the following is not a possible result of an audit by the IRS? (Points : 1)

Payment of a refund to the taxpayer Payment of a deficiency by the taxpayer An appeal No change in the liability All of the other provided choices are possible results

Question 71.71. Which of the following types of audits was suspended due to protests from taxpayers and lawmakers? (Points : 1)

Discriminant Function System selected audit Taxpayer Compliance Measurement Program selected audit Correspondence audit Office audit None of the other provided choices

Question 72.72. Which of the following is not a type of IRS audit? (Points : 1)

Office audit Field audit Correspondence audit Operational audit All of the other provided choices are types of IRS audits

Question 73.73. Which of the following is false regarding the return audit process? (Points : 1)

The higher DIF score a return gets, the higher the likelihood for audit. An office audit is performed at an IRS office. 50% of taxpayers are audited every year. None of the other provided choices are false.

Question 74.74. Which of the following is the calculation of the failure-to-file penalties? (Points : 1)

Half of 1% (0.5%) of the taxes due 5% of the tax due for each quarter late, limited to 25% of the taxes due 5% of the tax due for each month or part of the month that it is late, limited to 25% of the taxes due 20% of the tax due 5% of the tax due

Question 75.75. Craig commits fraud on his tax return. It is found that he was $40,000 deficient in his tax because of the fraud. What would his penalty be? (Points : 1)

$500 $30,000 $1,000 $20,000

Question 76.76. If a calendar year taxpayer's 2014 individual income tax return is mailed on June 15, 2015, the statute of limitations would normally run out on: (Points : 1)

June 15, 2017 June 15, 2018 April 15, 2017 April 15, 2018 None of the other choices provided

Question 77.77. Which of the following will not affect the statute of limitations on a tax return? (Points : 1)

Omission of a significant amount of gross income Mutual consent of the IRS and the taxpayer Failure to pay the tax due with the tax return Failure to file a tax return Filing a fraudulent tax return

Question 78.78. Mike deducts a bad debt on his 2014 tax return. How many years is the statute of limitations for the bad debt deduction? (Points : 1)

Zero 3 years 6 years 7 years No limit

Question 79.79. Which category of tax preparers may represent their clients in only the most limited situations in front of the IRS? (Points : 1)

Enrolled Agents Preparers enrolled only in the Annual Filing Season Program Attorneys CPAs