Questions from Individual Taxation

Q: How are business credits similar to personal credits? How are they

How are business credits similar to personal credits? How are they dissimilar?

Q: Is the foreign tax credit a personal credit or a business credit

Is the foreign tax credit a personal credit or a business credit? Explain.

Q: When a U.S. taxpayer pays income taxes to a

When a U.S. taxpayer pays income taxes to a foreign government, what options does the taxpayer have when determining how to treat the expenditure on her U.S. individual income tax return?

Q: Describe the two methods that taxpayers use to prepay their taxes.

Describe the two methods that taxpayers use to prepay their taxes.

Q: What are the consequences of a taxpayer underpaying his or her tax

What are the consequences of a taxpayer underpaying his or her tax liability throughout the year? Explain the safe harbor provisions that may apply in this situation.

Q: Describe how the underpayment penalty is calculated.

Describe how the underpayment penalty is calculated.

Q: What determines if a taxpayer is required to file a tax return

What determines if a taxpayer is required to file a tax return? If a taxpayer is not required to file a tax return, does this mean that the taxpayer should not file a tax return?

Q: What is the due date for individual tax returns? What extensions

What is the due date for individual tax returns? What extensions are available?

Q: Describe the consequences for failing to file a tax return and for

Describe the consequences for failing to file a tax return and for paying tax owed late.

Q: What is a tax bracket? What is the relationship between filing

What is a tax bracket? What is the relationship between filing status and the width of the tax brackets in the tax rate schedule?