Questions from Federal Taxation

Q: David is age 78, is a widower, and is being

David is age 78, is a widower, and is being claimed as a dependent by his son. How does this situation affect the following? a. David’s own individual filing requirement. b. David’s personal exemption...

Q: In March 2017, Jim asks you to prepare his Federal income

In March 2017, Jim asks you to prepare his Federal income tax returns for tax years 2014, 2015, and 2016. In discussing this matter with him, you discover that he also has not filed for tax year 2013....

Q: Mario, who is single, is a U.S.

Mario, who is single, is a U.S. citizen and resident. He provides almost all of the support of his parents and two aunts, who are citizens and residents of Guatemala. Mario’s parents and aunts are ser...

Q: Interpret this Regulation citation: Reg. § 1.163–

Interpret this Regulation citation: Reg. § 1.163–10(a)(2).

Q: The Benson CPA firm is considering utilizing an offshore service provider to

The Benson CPA firm is considering utilizing an offshore service provider to prepare many of its tax returns. In this regard, what ethical considerations must be taken into account?

Q: Rex, age 55, is an officer of Blue Company,

Rex, age 55, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2017: • Hospitalization insurance premiums for Rex and his dependents. The cost o...

Q: Comment on the availability of head-of-household filing status

Comment on the availability of head-of-household filing status in each of the following independent situations. a. Al lives alone but maintains the household of his parents. In July, the parents use t...

Q: In terms of tax policy, what do the following mean?

In terms of tax policy, what do the following mean? a. Revenue neutrality. b. Pay-as-you-go, or “paygo.” c. Sunset provision. d. Indexation.

Q: Jayden calculates his Federal income tax by using both the Tax Tables

Jayden calculates his Federal income tax by using both the Tax Tables and the Tax Rate Schedules. Because the Tax Rate Schedules yield a slightly lower tax liability, he plans to pay this amount. a. W...

Q: Some tax rules can be justified on multiple grounds (e.

Some tax rules can be justified on multiple grounds (e.g., economic and social). In this connection, comment on the possible justification for the rules governing the following: a. Pension plans. b. E...