True or False

1. Income from lottery winnings is considered taxable.

2. A quarter ($0.25) found on the sidewalk is considered taxable income.

3. Inherited wealth is taxable for federal income tax purposes.

Multiple choice

1. A taxpayer is entitled to take a standard deduction for the taxpayer can take a/an _____.

a. No standard deduction

b. Elective deduction

c. Itemized deduction

d. Enumerated deduction

2. The last nine and a page of the 1040 form lists the ____ of the taxpayer.

a. Taxable income

b. Total income

c. Adjusted gross income

d. Gross income

3. The taxpayer has the option of filling

a. 1040 (long form) , 1040 A, and 1040EZ forms

b. 1040EZ, 1040A, and 1040L forms

c. 1040, 1040E, and 1040EZ forms

d. 1040 or 1040EZ forms

4. IRS regulations are promulgated by

a. Congress

b. The treasury

c. The IRS

d. The US Supreme Court

5. The general purpose of the IRS regulations is

a. To assist the taxpayers I complying with the IRS rules and laws

B. To assist congress is making new laws

c. To comply with the US Supreme Court mandates.

d. All of the above

6. The general purpose of IRS revenue procedures

a. Is to assist the court system in interpreting irs rules and law

b. Is to assist taxpayers in complying with IRS rules and law.

c. Is to assist judges in interpreting IRS rules and law

d. All of the above