Income tax chapter 1 quizzes - The Sixteenth Amendment to...

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The Sixteenth Amendment to the U.S. Constitution affects: Choose one answer. a. direct taxes. b. indirect taxes. c. both (a) and (b). d. Neither (a) nor (b). The Sixteenth Amendment to the Constitution affects direct taxes. Incorrect Marks for this submission: 0/1. Question 2 Marks: 1 Prior to the Sixteenth Amendment direct taxes were illegal. Answer: True False Incorrect Marks for this submission: 0/1. Question 3 Marks: 1 The most popular form of doing business in the United States is: Choose one answer. a. Corporate form b. Partnership form c. Single proprietorship d. S corporation By far, the most popular form of business enterprise is the single proprietorship. Incorrect Marks for this submission: 0/1. Question 4 Marks: 1 The IRS levies penalties for which of the following: Choose one answer. a. Bouncing checks b. Fraud c. Late filing d. All of the above All items listed would have the IRS impose penalties. Correct Marks for this submission: 1/1. Question 5
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Marks: 1 All relevant taxes, including state, local and foreign income taxes, as well as employment and other taxes, must be taken into consideration when computing the tax effects of any proposed transaction. Answer: True False Correct Marks for this submission: 1/1. Question 6 Marks: 1 An exaction for revenue, such as the income tax, supports government functions like which of the following: Choose one answer. a. provide for the general welfare. b. provide for the common defense. c. pay national debts. d. all of the above. All the items listed are supported by general tax revenues. Correct Marks for this submission: 1/1. Question 7 Marks: 1 The Sixteenth Amendment to the U.S. Constitution gives Congress the power to lay and collect taxes on incomes from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration. Answer: True False Correct Marks for this submission: 1/1. Question 8 Marks: 1 When a transfer of wealth occurs upon a person's death and the tax owed is levied on the recipient, it is called: Choose one answer. a. estate tax. b. inheritance tax. c. gift tax. d. none of the above. The recipient pays the inheritance tax. Incorrect Marks for this submission: 0/1.
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Question 9 Marks: 1 Tax avoidance can be the sole business purpose for a transaction. Answer: True False Incorrect Marks for this submission: 0/1. Question 10 Marks: 1 Tax avoidance is discouraged as being anti-American. Answer: True False Perfectly legal and encouraged by our society. Correct Marks for this submission: 1/1. 1 Marks: 1 Customs taxes are imposed on exports to protect our natural resources from leaving the country. Also, some states tax natural resources, and some countries restrict and tax the amount of natural resources leaving their country. Answer:
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This note was uploaded on 09/15/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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Income tax chapter 1 quizzes - The Sixteenth Amendment to...

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