FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

Even if property tax rates are not changed,the ad valorem taxes imposed on realty may not remain the same.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

One of the major reasons for the enactment of the Federal estate tax was to prevent large amounts of wealth from being accumulated within the family unit.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

The ratification of the Sixteenth Amendment to the U.S.Constitution was necessary to validate the Federal income tax on individuals.

The tax law contains various provisions that encourage home ownership.

The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution)levied tax rates from a low of 2% to a high of 6%.

Which,if any,of the following statements best describes the history of the Federal income tax?

A parent employs his twin daughters,age 19,in his sole proprietorship.The daughters are not subject to FICA coverage.

No state has offered an income tax amnesty program more than once.

Congress reacts to judicial decisions that interpret the tax law in different ways.When it approves of a decision,Congress may act to amend the Code to incorporate the holding.When it disapproves,Congress may amend the Code to nullify its effect.Give an example of each one of these congressional reactions.

If fraud is involved,there is no time limit on the assessment of a deficiency by the IRS.

The U.S.(either Federal,state,or local) does not impose:

Which,if any,of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?

The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith's canon of convenience.

Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.

In a field audit,the audit by the IRS takes place at the office of the IRS.

The objective of pay-as-you-go (paygo)is to achieve revenue neutrality.

Under state amnesty programs,all delinquent and unpaid income taxes are forgiven.

In 2011,José,a widower,sells land (fair market value of $100,000)to his daughter,Linda,for $50,000.José has made a taxable gift of $37,000.

An inheritance tax is a tax on a decedent's right to pass property at death.

Two months after the burglary of his personal residence,Eric is audited by the IRS.Among the items taken in the burglary was a shoe box containing approximately $50,000 in cash.Eric is the owner and operator of a cash-and-carry liquor store.Eric wonders why he was audited.Can you help explain?