Questions from Individual Taxation

Q: Latoya filed her tax return on February 10th this year. When

Latoya filed her tax return on February 10th this year. When will the statute of limitations expire for this tax return?

Q: Explain why paying dividends is not an effective way to shift income

Explain why paying dividends is not an effective way to shift income from a corporation to its owners.

Q: Explain the difference between the DIF system and the National Research Program

Explain the difference between the DIF system and the National Research Program. How do they relate to each other?

Q: Describe the differences between the three types of audits in terms of

Describe the differences between the three types of audits in terms of their scope and taxpayer type.

Q: Using the facts from the previous problem, how would your answer

Using the facts from the previous problem, how would your answer change if Latoya understated her income by 40 percent? How would your answer change if Latoya intentionally failed to report as taxable...

Q: Simon just received a 30-day letter from the IRS indicating

Simon just received a 30-day letter from the IRS indicating a proposed assessment. Does he have to pay the additional tax? What are his options?

Q: If the general objective of our tax system is to raise revenue

If the general objective of our tax system is to raise revenue, why does the income tax allow deductions for charitable contributions and retirement plan contributions?

Q: Compare and contrast the three types of tax law sources and give

Compare and contrast the three types of tax law sources and give examples of each.

Q: Dontae stated that he didn’t want to earn any more money because

Dontae stated that he didn’t want to earn any more money because it would “put him in a higher tax bracket.” What is wrong with Dontae’s reasoning?

Q: Describe the three different tax rates discussed in the chapter and how

Describe the three different tax rates discussed in the chapter and how taxpayers might use them.