Questions from Federal Taxation


Q: Which of the following communications between an accountant and client are not

Which of the following communications between an accountant and client are not privileged? a. In a closed-door meeting, the accountant orally advises the client to set up a foreign subsidiary to shif...

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Q: In the preceding problem, how would your answers change if Amy

In the preceding problem, how would your answers change if Amy instead files her return on June 18 and, on September 8 pays the amount due? Assume her wage withholding tax amounts to a. $19,000 b. $...

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Q: The taxes shown on Hu’s tax returns for Year 1 and Year

The taxes shown on Hu’s tax returns for Year 1 and Year 2 are $5,000 and $8,000, respectively. Hu’s wage withholding for Year 2 was $5,200, and she paid no estimated taxes. Hu filed her Year 2 return...

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Q: Bob, a calendar year taxpayer, files his current year individual

Bob, a calendar year taxpayer, files his current year individual return on July 17 of the following year without having requested an extension. His return indicates an amount due of $5,100. Bob pays t...

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Q: Carl’s tax liability for last year was $19,000,

Carl’s tax liability for last year was $19,000, and his AGI did not exceed $150,000. Carl requests an automatic extension for filing his current year individual return but does not pay any additional...

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Q: A client inquires about the significance of distributable net income (DNI

A client inquires about the significance of distributable net income (DNI). Explain.

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Q: Refer to the preceding problem. a. Will Carl owe

Refer to the preceding problem. a. Will Carl owe interest? If so, on what amount and for how many days? Assume that any interest period begins on April 16 of a non–leap year. b. Assume the applicabl...

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Q: Refer to the preceding problem. Assume that Ed expects his income

Refer to the preceding problem. Assume that Ed expects his income for this year to decline and his tax liability for this year to be only $15,000. What minimum amount of estimated taxes should Ed pay...

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Q: Pam’s prior year (Year 1) income tax liability was $

Pam’s prior year (Year 1) income tax liability was $23,000. Her current year (Year 2) AGI did not exceed $150,000. On April 2 of next year (Year 3), Pam, a calendar year taxpayer, timely files her cur...

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Q: Amir’s projected tax liability for the current year is $23,

Amir’s projected tax liability for the current year is $23,000. Although Amir has substantial dividend and interest income, he does not pay any estimated taxes. Amir’s withholding for January through...

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