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Exam 2: Tax Compliance, the Irs, and Tax Authorities

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Question 21

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The three basic types of IRS examinations are computer exams, office exams, and business exams.

A) True
B) False

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Question 22

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Hong, an introductory tax student, is beginning his first research project. He has a complete understanding of the relevant facts for his project and has identified the initial research questions. He is now ready to begin using a tax service to identify relevant authorities. What are some suggestions for him on how to use tax services to identify relevant authorities?

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A novice may conduct a keyword search in...

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Question 23

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Lindy, a tax intern, is beginning her first tax research case for her employer. Her manager has given her a basic understanding of the facts and has identified the basic research question. Lindy is now ready to begin searching for relevant tax authorities. Describe the different types of research tools available to help a tax researcher locate relevant authority and identify which type may be especially useful for Lindy.

A taxpayer can avoid an underpayment penalty if there is substantial authority that supports her tax return position.

Which of the following courts is the only court that provides for a jury trial?

Office examinations are the most common type of IRS audit.

Which of the following is not a common tool used in conducting tax research?

Of the two basic types of tax services, beginning tax researchers often prefer topical tax services.

Which of the following has the highest authoritative weight?

Henry filed his 2020 tax return on May 15 ^th, 2021. The statute of limitations for IRS assessment on Henry's 2020 tax return should end:

Dominic earned $1,500 this year, and his employer withheld $200 of federal income tax from his salary. Assuming that Dominic is single, 30 years old, and will have zero tax liability this year, he:

Joel reported a high amount of charitable contributions as a deduction on his individual tax return relative to taxpayers with similar income levels. The information matching program is the IRS program most likely to identify Joel's tax return for audit.

Josephine is considering taking a six-month rotation in Paris for her job. Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Under the tax law, taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g., due to fraud).

Which types of penalties are only imposed after normal due process including a trial?

Because the U.S. District Court hears a broader set of cases, decisions by the U.S. District Court may be considered to have more authoritative weight than those by the U.S. Court of Federal Claims.

Which of the following committees typically initiates tax legislation?

Edie would like to better understand a new code section enacted four weeks ago. Which of the following authorities will help Edie understand the newly enacted code section?

If a taxpayer is due a refund, she does not have to file a tax return.

Bill filed his 2020 tax return on March 15 ^th, 2021. The statute of limitations for IRS assessment on Bill's 2020 tax return should end: