Freddie has been assessed a preparer penalty for

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Anderson's Business Law and the Legal Environment, Comprehensive Volume
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Chapter 31 / Exercise 14
Anderson's Business Law and the Legal Environment, Comprehensive Volume
Jennings/Twomey
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79. Freddie has been assessed a preparer penalty for willful and reckless conduct. When he completed Peggy’s Federal income tax return (she is in the 33% tax bracket), Freddie purposely omitted $100,000 of cash receipts that should have been reported as gross income. Freddie charged Peggy $4,000 to prepare the return. What is Freddie’s preparer penalty? A. $0, because Peggy incurred her own understatement penalty for the return.B. $2,000.C. $4,000.D.$5,000.
80. The privilege of confidentiality applies to a CPA tax preparer concerning the client’s information relative to:
81. The Statements on Standards for Tax Services are issued by the:
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Anderson's Business Law and the Legal Environment, Comprehensive Volume
The document you are viewing contains questions related to this textbook.
Chapter 31 / Exercise 14
Anderson's Business Law and the Legal Environment, Comprehensive Volume
Jennings/Twomey
Expert Verified
82. The IRS is a subsidiary agency of the Department of the ____________________.
83. About ____________________% of all Forms 1040 are audited each year. The rate is about ____________________% if income exceeds $1 million.
84. The IRS is one of the largest Federal agencies, employing about ____________________ people throughoutthe year.
85. According to the IRS, the annual “Tax Gap” totals about $______________________ billion.
86. The IRS processes about ____________________ million individual tax returns every year, about ____________________ percent of which are filed electronically.
87. The chief executive of the IRS is the _________________________.
88. The ____________________, a presidential appointee, is the “IRS’s attorney.”
89. A letter ruling should be requested when the taxpayer wants to know the IRS interpretation of how the tax law will be applied to a ____________________ (proposed, completed) transaction.
90. During an audit, IRS personnel might request a(n) ____________________ from the IRS National Office, to clarify the application of tax law concerning a tax deduction.
91. During an audit, the IRS might require that the taxpayer produce the ____________________ that underlie the tax return data.
92. After the completion of an audit, the taxpayer has 90 days to petition the ____________________ Court to modify the proposed tax due.
93. If the taxpayer refuses to pay an assessed tax, the IRS can seize taxpayer property under the ____________________ process.
94. The IRS can pay an informant’s fee of up to ____________________% of the recovered tax, interest, and penalty amounts. The reward can be as high as ____________________% for information provided by a

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