Questions from Individual Taxation

Q: Irene is disabled and receives payments from a number of sources (

Irene is disabled and receives payments from a number of sources (see below). The interest payments are from bonds that Irene purchased over past years and a disability insurance policy that Irene pur...

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

Using the same facts from the previous problem, how would your answer change if Randy estimates that there is only a 20 percent chance that the position will be sustained upon audit or judicial procee...

Q: Sasha owes additional tax imposed in a recent audit. In addition

Sasha owes additional tax imposed in a recent audit. In addition to the tax, will she be assessed other amounts? If so, how will these amounts be determined?

Q: Maurice has a client that recently asked him about the odds of

Maurice has a client that recently asked him about the odds of the IRS detecting cash transactions not reported on a tax return. What are some of the issues that Maurice should discuss with his client...

Q: Approximately what percentage of tax returns does the IRS audit? What

Approximately what percentage of tax returns does the IRS audit? What are the implications of this number for the IRS’s strategy in selecting returns for audit?

Q: Last year Nate opened a savings account with a deposit of $

Last year Nate opened a savings account with a deposit of $15,000. The account was in the name of Nate and Derrick, joint tenancy with the right of survivorship. Derrick did not contribute to the acco...

Q: Courtney recently received a speeding ticket on her way to the

Courtney recently received a speeding ticket on her way to the university. Her fine was $200. Is this considered a tax? Why or why not?

Q: Cassie works in an office and has access to several professional color

Cassie works in an office and has access to several professional color printers. Her employer allows Cassie and her fellow employees to use the printers to print color postcards for the holidays. This...

Q: Explain how state and local governments benefit from the provisions that allow

Explain how state and local governments benefit from the provisions that allow taxpayers to exclude interest on state and local bonds from their gross income.

Q: The cash method of accounting means that taxpayers don’t recognize income unless

The cash method of accounting means that taxpayers don’t recognize income unless they receive cash or cash equivalents. True or false? Explain.