QI:1-3 (book/static) Question Help Congressman Patrick indicates that he is opposed to tax proposals that call for a flat tax rate because the structure would not tax those individuals who have the ability to pay the tax. Discuss the position of the congressman, giving consideration to tax rate structures (e.g. progressive, proportional, and regressive) and the concept of equity tax structure, the same tax rate applies Under a tax rate structure, the tax rate increases as the taxpayer's income increases. Under a tax rate or to all taxpayers regardless of their income levels. Under a tax rate structure, the tax rate decreases with an increase income level. QI:1-30 (book/static) Question Help Anya is concerned that she will be audited by the IRS. a. b. Under what circumstances is it possible that the IRS will review each line item on her tax return? Is it likely that all items on Anya's return will be audited? a. Under what circumstances is it possible that the IRS wil review each line item on her tax return? O A Rarely will the IRS review each line of Anya's return Audits of individual taxpayers generally focus on selected line items on the return. The audit procedure does not involve a complete audit of all items on the return OB. The IRS has an audit procedure in place to review each line item on Anya's tax return if she is self-employed with a small amount of business income and takes the standard deduction O C. The IRS has an audit procedure in place to review each line item on Anya's tax return if she has reported a capital loss for three consecutive years. OD. It is very common for the IRS to review every line item on an individual tax return Score: 0 of 2 pts 3 of 10 (2 complete) HW Score: 20%, 4 of 20 pts QI:1-13 (book/static) Question Help A good tax structure has five characteristics a. b. Briefly discuss the five characteristics Using the five characteristics, evaluate the following tax structures: 1. Federal income tax 2. State sales tax 3. Local ad valorem property tax a. Briefly discuss the five characteristics. For each characteristic, choose the corresponding description 1. 2. 3. 4. 5. Characteristic Description - Ensures a stable source of government revenue. Provides taxpayers some sureness concerning their annual Equity tax liability Certainty Provides conformity with the tax laws Convenience Tax system is easy to understand and comply with Economy Minimal compliance and adminstrative costs Simplicity Faimess of the tax to the taxpayers Score: 0 of 2 pts 7 of 10 (2 complete) HW Score: 20%, 4 of 20 pts QI:1-21 (book/static) Question Help Limited liability companies (LLCs) are very popular today as a form of organization. Assume a client asks you to explain what this type of organization is all about. Prepare a brief description of the federal income tax aspects of LLCs Limited liability companies (LLCs) are generally taxed as allocated to the members (owners) of the LLC. Thus, a Therefore, the LLC subject to income tax on its taxable income but such income is imposed. The same allocation rules that pertain to also apply to LLCs