Questions from Federal Taxation

Q: Review Exhibit 26.1, and identify the following.

Review Exhibit 26.1, and identify the following. a. The title of the IRS’s chief executive officer. b. The title of the “IRS’s attorney.” c. The names of the four major operating divisions of the IRS....

Q: Compute the preparer penalty the IRS could assess on Gerry in each

Compute the preparer penalty the IRS could assess on Gerry in each of the following independent cases. a. On March 21, the copy machine was not working, so Gerry gave original returns to her 20 client...

Q: You are the chair of the Ethics Committee of your state’s CPA

You are the chair of the Ethics Committee of your state’s CPA Licensing Commission. Interpret controlling AICPA authority in addressing the following assertions by your membership. a. When a CPA has r...

Q: Blanche Creek (111 Elm Avenue, Plymouth, IN 46563)

Blanche Creek (111 Elm Avenue, Plymouth, IN 46563) has engaged your firm because she has been charged with failure to file her 2015 Federal Form 1040. Blanche maintains that the “reasonable cause” exc...

Q: Your firm is preparing the Form 1040 of Norah McGinty, a

Your firm is preparing the Form 1040 of Norah McGinty, a resident, like you, of Oklahoma. You have contracted for the last three filing seasons with a firm in India, Tax Express Bangalore, to prepare...

Q: Lopez always had taken his Form 1040 data to the franchise tax

Lopez always had taken his Form 1040 data to the franchise tax preparers in a local mall, but this year, his friend Cheryl asked to prepare his return. Cheryl quoted a reasonable fee, and Lopez reason...

Q: Matthew owns an insurance policy (face amount of $500,

Matthew owns an insurance policy (face amount of $500,000) on the life of Emily, with Uma listed as the designated beneficiary. If Emily dies first and the $500,000 is paid to Uma, how much as to this...

Q: Under Emma’s will, Addison inherits property that generates an estate tax

Under Emma’s will, Addison inherits property that generates an estate tax of $800,000. Three years later, Addison dies and the property generates an estate tax of $700,000. To how much of a credit for...

Q: With $5 million, Paul’s will creates a trust with the

With $5 million, Paul’s will creates a trust with the following provisions: life estate to Jacob (Paul’s son) and remainder to Anastasia (Paul’s granddaughter and Jacob’s daughter). Jacob dies when th...

Q: During 2017, Vasu wants to take advantage of the annual exclusion

During 2017, Vasu wants to take advantage of the annual exclusion and make gifts to his 6 married children (including their spouses) and his 12 minor grandchildren. a. How much property can Vasu give...