IT HW1 - businesses, especially if significant tax losses...

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Jordan Evans Tax 1 HW1 2,5,10 29,30,34 2. Why was pay-as-you-go withholding needed in 1943? To accommodate the broadened tax base and to avoid significant tax collection problems, 5. Carmen has computed that her average tax rate is 16% and her marginal tax rate is 25% for the current year. She is considering whether to make a charitable contribution to her church before the end of the tax year. Which tax rate is of greater significance in measuring the tax effect for her decision? Explain. The higher rate is what will likely change based on her contribution. She will likely pay the 16% anyways 10. Indicate which of the following taxes are generally progressive, proportional, or regressive: a. State income taxes – progressive b. Federal estate tax – progressive c. Corporate state franchise tax – proportional d. Property taxes – proportional e. State sales taxes – proportional
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Jordan Evans Tax 1 HW1 29. most likely to get audited Individuals who are sole proprietors and claim expenses in connection with their trade or
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Unformatted text preview: businesses, especially if significant tax losses are incurred. Itemized deductions exceeding an average amount for the person’s income level Filing of a refund claim by a taxpayer who has been previously audited, where substantial tax deficiencies have been assessed Individuals who are self-employed with substantial business income or income from a profession ( e. g., a medical doctor) 30. a. A field audit generally is broader in scope than the office audit ( e. g., several items on the tax return may be reviewed). b. In most cases, an individual is asked to substantiate a particular deduction, credit, or income item ( e. g., charitable contributions that appear to be excessive). The office audit procedure does not involve a complete audit of all items on the return. 34. either a completed transaction ( e. g., a sale of property) or a proposed transaction ( e. g., a proposed merger of two corporations)....
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This note was uploaded on 03/26/2012 for the course ACCT ACCT210 taught by Professor Challanworthington during the Spring '10 term at S. Alberta Tech.

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IT HW1 - businesses, especially if significant tax losses...

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