Taxation I WGU - C237, Exam Questions and answers, 100% Accurate. VERIFIED.

Taxation I WGU - C237, Exam Questions and answers, 100% Accurate. VERIFIED. After reinstatement of the individual federal income tax in 1894, why was the tax challenged in the courts? A. Revenue from taxes was no longer necessary because the Civil War was over. B. Administration would be difficult since the tax was apportioned in proportion to state populations. C. The preferred method of taxation was on business transactions as opposed to individual income tax. D. The U.S. Constitution failed to define the meaning of income which would arguably prevent consistent application of the law. - -B. Administration would be difficult since the tax was apportioned in proportion to state populations. What is the highest level of legislative authority of tax law in the United States? A. American Institute of Certified Public Accountants B. Journal of Taxation C. Revenue procedures D. Internal Revenue Code - -D. Internal Revenue Code What are two primary sources of tax law in the United States? Choose 2 answers A. Tax adviser B. Court decisions C. Revenue rulings D. CCH's Master Tax Guide - -B. Court decisions C. Revenue rulings What is a desirable characteristic when evaluating a tax system? A. Tax rules and regulations are changed frequently. B. Most tax returns are examined for accuracy by an IRS agent. C. Taxes are calculated on specialized software purchased from the IRS. D. Taxes can be estimated in advance if annual income remains the same. - -D. Taxes can be estimated in advance if annual income remains the same. What is an example of equity when evaluating a tax system? A. Each taxpayer can choose the due date for their tax. B. Each taxpayer pays a different amount based on their income level. C.Individuals have designated amounts withheld from each paycheck. D. Individuals may take a standard deduction to reduce record keeping. - -B. Each taxpayer pays a different amount based on their income level. What increases the tax base of an individual