Posted: October 20th, 2022

tax problems true false

71. When
Congress enacts a tax cut that is phased in over a period of years, revenue
neutrality is achieved.
a. True
b. False

?
72. A tax cut
enacted by Congress that contains a sunset provision will make the tax cut
temporary.
a. True
b. False

73. The tax
law provides various tax credits, deductions, and exclusions that are designed
to encourage taxpayers to obtain additional education. These provisions can be
justified on both economic and equity grounds.
a. True
b. False

74. Various
tax provisions encourage the creation of certain types of retirement plans.
Such provisions can be justified on both economic and social grounds.
a. True
b. False

75. To lessen,
or eliminate, the effect of multiple taxation, a taxpayer who is subject to
both foreign and U.S. income taxes on the same income is allowed either a
deduction or a credit for the foreign tax paid.
a. True
b. False

76. To
mitigate the effect of the annual accounting period concept, the tax law
permits the carryforward to other years of the excess charitable contributions
of a particular year.
a. True
b. False

77. Jason’s
business warehouse is destroyed by fire. As the insurance proceeds exceed the
basis of the property, a gain results. If Jason shortly reinvests the proceeds
in a new warehouse, no gain is recognized due to the application of the
wherewithal to pay concept.
a. True
b. False

78. As it is
consistent with the wherewithal to pay concept, the tax law requires a seller
to recognize gain in the year the installment sale occurs.
a. True
b. False

79. Stealth
taxes have the effect of generating additional taxes from all taxpayers.
a. True
b. False

80. A
provision in the law that compels accrual basis taxpayers to pay a tax on
prepaid income in the year received and not when earned is consistent with
generally accepted accounting principles.
a. True
b. False

81. As a
matter of administrative convenience, the IRS would prefer to have Congress
decrease (rather than increase) the amount of the standard deduction allowed to
individual taxpayers.
a. True
b. False

82. In cases
of doubt, courts have held that tax relief provisions should be broadly construed
in favor of taxpayers.
a. True
b. False

ANSWER: False
RATIONALE: Such
provisions should be narrowly construed in favor of taxpayers.

83. On
occasion, Congress has to enact legislation that clarifies the tax law in order
to change a result reached by the U.S. Supreme Court.
a. True
b. False

?
84. Which, if
any, of the following statements best describes the history of the Federal
income tax?
a. It did
not exist during the Civil War.
b. The
Federal income tax on corporations was held by the U.S. Supreme Court to be
allowable under the U.S. Constitution.
c. The
Federal income tax on individuals was held by the U.S. Supreme Court to be
allowable under the U.S. Constitution.
d. Both the
Federal income tax on individuals and on corporations was held by the U.S.
Supreme Court to be contrary to the U.S. Constitution.
e. None of
the above.

85. Which, if
any, is not one of Adam Smith’s canons of taxation?
a. Economy.
b. Certainty.
c. Convenience.
d. Simplicity.
e. Equality.

86. Which, if
any, of the following taxes are proportional (rather than progressive)?
a. State
general sales tax.
b. Federal
corporate income tax.
c. Federal
estate tax.
d. Federal
gift tax.
e. All of
the above.

87. Which, if
any, of the following transactions will increase a taxing jurisdiction’s
revenue from the ad valorem tax imposed on real estate?
a. A
resident dies and leaves his farm to his church.
b. A large
property owner issues a conservation easement as to some of her land.
c. A tax
holiday issued 10 years ago has expired.
d. A
bankrupt motel is acquired by the Red Cross and is to be used to provide
housing for homeless persons.
e. None of
the above.

88. Which, if
any, of the following transactions will decrease a taxing jurisdiction’s ad
valorem tax revenue imposed on real estate?
a. A tax
holiday is granted to an out-of-state business that is searching for a new
factory site.
b. An
abandoned church is converted to a restaurant.
c. A public
school is razed and turned into a city park.
d. A local
university sells a dormitory that will be converted for use as an apartment
building.
e. None of
the above.

89. Which, if
any, of the following is a typical characteristic of an ad valorem tax on
personalty?
a. Taxpayer
compliance is greater for personal use property than for business use property.
b. The tax
on automobiles sometimes considers the age of the vehicle.
c. Most
states impose a tax on intangibles.
d. The tax
on intangibles generates considerable revenue since it is difficult for
taxpayers to avoid.
e. None of
the above.

90. Federal
excise taxes that are no longer imposed include:
a. Tax on
air travel.
b. Tax on
wagering.
c. Tax on
the manufacture of sporting equipment.
d. Tax on
alcohol.
e. None of
the above.

91. Taxes not
imposed by the Federal government include:
a. Tobacco
excise tax.
b. Customs
duties (tariffs on imports).
c. Tax on
rent cars.
d. Gas
guzzler tax.
e. None of
the above.

92. Taxes
levied by both states and the Federal government include:
a. General
sales tax.
b. Custom
duties.
c. Hotel
occupancy tax.
d. Franchise
tax.
e. None of
the above.

93. Taxes
levied by all states include:
a. Tobacco
excise tax.
b. Individual
income tax.
c. Inheritance
tax.
d. General
sales tax.
e. None of
the above.

94. A use tax
is imposed by:
a. The
Federal government and all states.
b. The
Federal government and a majority of the states.
c. All
states and not the Federal government.
d. Most of the
states and not the Federal government.
e. None of
the above.

95. Burt and
Lisa are married and live in a common law state. Burt wants to make gifts to
their four children in 2014. What is the maximum amount of the annual exclusion
they will be allowed for these gifts?
a. $14,000.
b. $28,000.
c. $56,000.
d. $112,000.
e. None of the above.

?
96. Property
can be transferred within the family group by gift or at death. One motivation
for preferring the gift approach is:
a. To take
advantage of the higher unified transfer tax credit available under the gift
tax.
b. To avoid
a future decline in value of the property transferred.
c. To take
advantage of the per donee annual exclusion.
d. To shift
income to higher bracket donees.
e. None of
the above.

97. Indicate
which, if any, statement is incorrect. State income taxes:
a. Can
piggyback to the Federal version.
b. Cannot
apply to visiting nonresidents.
c. Can
decouple from the Federal version.
d. Can
provide occasional amnesty programs.
e. None of
the above.

98. State
income taxes generally can be characterized by:
a. The same
date for filing as the Federal income tax.
b. No
provision for withholding procedures.
c. Allowance
of a deduction for Federal income taxes paid.
d. Applying
only to individuals and not applying to corporations.
e. None of
the above.
99. A
characteristic of FICA is that:
a. It does
not apply when one spouse works for the other spouse.
b. It is
imposed only on the employer.
c. It
provides a modest source of income in the event of loss of employment.
d. It is
administered by both state and Federal governments.
e. None of
the above.

100. A
characteristic of FUTA is that:
a. It is
imposed on both employer and employee.
b. It is
imposed solely on the employee.
c. Compliance
requires following guidelines issued by both state and Federal regulatory
authorities.
d. It is
applicable to spouses of employees but not to any children under age 18.
e. None of
the above.

Order | Check Discount

Tags: AI Plagiarism free essay writing tool, Australian best tutors, best trans tutors, buy essay uk, cheap dissertation writer