Questions from General Taxation

Q: Terrance is age 71 and retired. Beginning in 2017, he

Terrance is age 71 and retired. Beginning in 2017, he must start taking minimum distributions from his IRA account that had a balance of $150,000 as of December 31, 2016. Make these three assumption...

Q: Which of the following expenses are qualifying expenses for purposes of the

Which of the following expenses are qualifying expenses for purposes of the education credits? a. Books (purchased at the institution as a condition of enrollment). b. Tuition. c. Room and Board. d....

Q: Which of the following conditions must be met for a taxpayer to

Which of the following conditions must be met for a taxpayer to be able to claim the foreign tax credit (FTC) without filing Form 1116? a. All of the foreign-source income is passive income. b. All o...

Q: Employees claim withholding allowances on Form W-4. Each withholding

Employees claim withholding allowances on Form W-4. Each withholding allowance claimed lowers their annual withholding base by what amount for calendar year 2017? a. $3,900. b. $3,950. c. $4,000. d....

Q: An employer will prepare Schedule B of Form 941 under which circumstances

An employer will prepare Schedule B of Form 941 under which circumstances? a. Line 12 on the Form 941 is less than $2,500. b. The employer is a semi-monthly depositor. c. The employer is a monthly de...

Q: Lauer Company started its business on July 25, 2017. On

Lauer Company started its business on July 25, 2017. On August 11, it paid wages for the first time and accumulated a tax liability of $48,000. On Friday, August 18, it incurred a tax liability of $...

Q: What is the penalty for sending a required tax payment (unless

What is the penalty for sending a required tax payment (unless specifically allowed) directly to the Internal Revenue Service? a. 2% . b. 5%. c. 10%. d. 15%.

Q: A semiweekly schedule depositor’s payroll period ends and is paid on Friday

A semiweekly schedule depositor’s payroll period ends and is paid on Friday, June 24. The depositor (employer) must deposit the federal taxes for this pay period on or before a. The following Wednes...

Q: To what amount of employer tax accumulation does the one-day

To what amount of employer tax accumulation does the one-day deposit rule apply? a. $75,000. b. $100,000. c. More than $100,000. d. An amount between $75,000 and $99,999.

Q: Employers are required to deposit FUTA taxes when their liability exceeds

Employers are required to deposit FUTA taxes when their liability exceeds a. $100. b. $500. c. $1,000. d. $1,500.