Ch9 - 1 One indicia of independent contractor(rather than employee status is when the individual performing the services is paid based on tasks

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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.
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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
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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
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This note was uploaded on 04/02/2012 for the course ECON 101 taught by Professor Sing during the Spring '12 term at CUNY Hunter.

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Ch9 - 1 One indicia of independent contractor(rather than employee status is when the individual performing the services is paid based on tasks

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