ch9 - 1 One indicia of independent contractor(rather than...

1. One indicia of independent contractor (rather than employee) status
is when the individual performing the services is paid based on tasks
performed (rather than time spent).
*a. True
b. False
2. In some cases it may be appropriate for a taxpayer to report work-
related expenses by using both Form 2106 and Schedule C.
*a. True
b. False
3. The IRS will issue advanced rulings as to whether a worker’s status
is that of an employee or an independent contractor.
*a. True
b. False
4. Jake performs services for Maude. If Maude provides Jake with a
helper and tools, this is indicative of independent contractor (rather
than employee) status.
a. True
*b. False
5. A statutory employee is not a common law employee but is subject to
income tax withholdings.
a. True
*b. False
6. For tax purposes, a statutory employee is not treated the same as a
common law employee.
*a. True
b. False
7. If an individual is subject to the direction or control of another
only to the extent of the end result but not as to the means of
accomplishment, an employer-employee relationship does not exist.
*a. True
b. False
8. The work-related expenses of an independent contractor will be
subject to the 2%-of-AGI floor.

a. True
*b. False
9. After she finishes working at her main job, Ann returns home, has
dinner, then drives to her second job. Ann may deduct the mileage
between her home and second job.
a. True
*b. False
10. After the automatic mileage rate has been set by the IRS for a
year, it cannot later be changed by the IRS.
a. True
*b. False
11. In choosing between the actual expense method and the automatic
mileage method, a taxpayer should consider the cost of insurance on the
automobile.
*a. True
b. False
12. A taxpayer who uses the automatic mileage method to compute auto
expenses can also deduct the business portion of tolls and parking.
*a. True
b. False
13. A deduction for parking and other traffic violations is allowed
under the actual cost method but not the automatic mileage method.
a. True
*b. False
14. Once the actual cost method is used, a taxpayer cannot change to the
automatic mileage method in a later year.
a. True
*b. False
15. For tax purposes, “travel” is a broader classification than
“transportation.”
*a. True
b. False

16. Amy lives and works in St. Louis. In the morning she flies to
Boston, has a three-hour business meeting, and returns to St. Louis that
evening. For tax purposes, Amy was away from home.
a. True
*b. False
17. Janet, who lives and works in Newark, travels to Atlanta for a
Thursday-Friday business conference. She stays over after the conference
and visits relatives and friends on Saturday. Under certain
circumstances, the meals and lodging expenses for Saturday can be
considered as business related.
*a. True
b. False
18. Marvin lives with his family in Alabama. He has two jobs: one in
Alabama and one in North Carolina. Marvin’s tax home is where he lives
(Alabama).