Questions from Federal Taxation

Q: Compute the undervaluation penalty for each of the following independent cases involving

Compute the undervaluation penalty for each of the following independent cases involving the executor’s reporting of the value of a closely held business in the decedent’s gross estate. In each case,...

Q: Ace filed her 2016 income tax return on January 25, 2017

Ace filed her 2016 income tax return on January 25, 2017. There was no material understatement of income on her return, and the return was properly signed and filed. The statute of limitations for Ace...

Q: Blanche filed her 2016 income tax return on April 4, 2017

Blanche filed her 2016 income tax return on April 4, 2017. On December 14, 2017, she learned that 100 shares of stock that she owned had become worthless in 2016. Because she did not deduct this loss...

Q: Carl purposely omitted from his 2017 tax return $40,000

Carl purposely omitted from his 2017 tax return $40,000 of the gross receipts that he collected as the owner of a restaurant. His 2017 return indicated collective gross receipts of $25,000. The IRS no...

Q: David accidentally omitted from his 2016 tax return $40,000

David accidentally omitted from his 2016 tax return $40,000 of the gross receipts that he collected as the owner of a restaurant. His 2016 return indicated collective gross receipts of $25,000. The IR...

Q: Discuss some of the key points that the tax researcher must consider

Discuss some of the key points that the tax researcher must consider with respect to evaluating court cases as part of a research project.

Q: Jenna and Sam sold a piece of property for $300,

Jenna and Sam sold a piece of property for $300,000, claiming that their basis was $150,000 and report a taxable gain of $150,000. Their 2016 return filed in February 2017 reported gross income of $25...

Q: Which type of audit is used most often to substantiate the reported

Which type of audit is used most often to substantiate the reported items of income or deduction for individuals who have only wages? a. Field b. Office c. Correspondence

Q: A revenue agent may do which of the following in an attempt

A revenue agent may do which of the following in an attempt to negotiate a settlement after the completion of an audit? More than one answer may be correct. a. Attempt to settle an unresolved issue ba...

Q: Make a chart that distinguishes among the various types of examinations that

Make a chart that distinguishes among the various types of examinations that the IRS conducts relative to individual income tax returns, namely, office, correspondence, field, and NRP audits. For this...