A taxpayers return might be selected for audit on the

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Introduction to Probability and Statistics
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Chapter 6 / Exercise 9
Introduction to Probability and Statistics
Beaver/Mendenhall
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95. A taxpayer’s return might be selected for audit on the basis of the ____________________ score that the IRS computes.
96. If the taxpayer comes to the office of the IRS for the audit of a tax return, the review is called a(n) ____________________ audit.
97. In taking a dispute to the Appeals Division, a written protest is required of the taxpayer when the proposed deficiency exceeds $____________________.
98. A taxpayer can take a dispute to the ____________________ Division of the Tax Court when the disputed amounts do not exceed $50,000.
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Introduction to Probability and Statistics
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Chapter 6 / Exercise 9
Introduction to Probability and Statistics
Beaver/Mendenhall
Expert Verified
99. Currently, the IRS charges a ____________________% interest rate on taxes that the taxpayer underpays. 3or three100. The IRS pays interest on a refund to the taxpayer, unless the IRS’s payment is made within ____________________ days of the date that a return is filed.
101. With respect to tax misconduct, a ____________________ penalty usually involves only a fine, and a ____________________ penalty also can include jail time.
102. If the taxpayer shows ____________________ for an underpayment of tax, the failure to pay penalty can be reduced or eliminated.
103. The accuracy-related penalties typically relate to ____________________on the part of the taxpayer, or other understatements of tax.
104. A negligence penalty can be waived if the taxpayer discloses a tax return position that is contrary to a judicial precedent and there is a ____________________ for the taxpayer’s position.
105. The IRS can waive the penalty for a substantial understatement of a tax liability if the taxpayer shows ____________________ for the position taken on the tax return.
106. A ____________________% penalty may result when a taxpayer overstates by 150% or more the value of an asset contributed to a charity.
107. The taxpayer can avoid a valuation penalty for overstating the value of the charitable contribution of an artwork by showing that the deduction claimed was based on a qualified ____________________.
108. A penalty can be assessed from an appraiser who knew that his/her improper appraisal would be used as part of a tax computation, in the amount of the lesser of ____________________% of the tax understatement or____________________ % of the appraisal fee collected.
109. Quon filed an amended return, claiming a $100,000 refund. The IRS disallowed the refund, and it can assess a penalty if there was no reasonable basis of support for the refund claim, in the amount of ____________________% of the disallowed amount.
110. An individual is not subject to an underpayment penalty until more than $____________________ is due and unpaid through estimated taxes.

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