Taxation C237 (Pre-assessment guide) questions ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
with accurate answers ||//\\|| ||//\\||
What year was the U.S. income tax on individuals permanently established?
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A. 1861
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B. 1894
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C. 1913
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D. 1924 - ✔✔C. 1913
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What is the second-highest level of legislative authority of tax law in the United States?
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A. American Institute of Certified Public Accountants (AICPA)
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B. Journal of Taxation
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C. Revenue procedures
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D. Internal Revenue Code - ✔✔D. Internal Revenue Code
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In which publications does the IRS provide information on the tax consequences of specific
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
transactions encountered in practice? ||//\\|| ||//\\|| ||//\\||
A. Technical advice memoranda
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B. Information releases
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C. Revenue rulings
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D. Official announcements - ✔✔C. Revenue rulings
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,What is an example of equity when evaluating a tax system?
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A. Each taxpayer can choose the due date for their tax.
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B. Each taxpayer pays a different amount based on their income level.
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C. Individuals have designated amounts withheld from each paycheck.
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D. Individuals may take a standard deduction to reduce record keeping. - ✔✔B. Each
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taxpayer pays a different amount based on their income level. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
What is true about horizontal equity?
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A. Taxpayers with a greater ability to pay tax paying more tax
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B. Two taxpayers in similar situations paying the same tax
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C. Taxpayers with a lesser ability to pay tax paying more tax
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D. Horizontal equity does not exist in a federal tax structure. - ✔✔B. Two taxpayers in
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similar situations paying the same tax ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
What is the nature of a progressive tax rate structure?
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A. Each taxpayer devotes the same percentage of income to pay the tax.
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B. Lower-income taxpayers devote a greater percentage of income to pay the tax relative to
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
higher-income individuals. ||//\\||
C. The rate of tax increases as the tax base increases.
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D. The rate of tax decreases as the tax base increases. - ✔✔C. The rate of tax increases as
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the tax base increases.
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Which tax rate structure is exemplified by the FICA portion of Social Security taxes?
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, A. Effective
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B. Regressive
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C. Progressive
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D. Proportional - ✔✔B. Regressive
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An individual is salaried, is not operating a business, is divorced with one child living at
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home, earned $93,000 in wages for 2021, and has $17,900 of itemized deductions.
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What is this individual's tax liability?
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A. $6,682
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B. $10,620
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C. $10,818
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D. $14,889 - ✔✔D. $14,889
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Which tax is based on the value of an individual's real estate?
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A. Property tax
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B. Franchise tax
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C. Federal estate tax
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D. Wealth transfer tax - ✔✔A. Property tax
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Which entities are considered flow-through entities in the U.S. tax system?
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A. Individual taxpayers
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B. Religious associations
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with accurate answers ||//\\|| ||//\\||
What year was the U.S. income tax on individuals permanently established?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. 1861
||//\\||
B. 1894
||//\\||
C. 1913
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D. 1924 - ✔✔C. 1913
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What is the second-highest level of legislative authority of tax law in the United States?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. American Institute of Certified Public Accountants (AICPA)
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
B. Journal of Taxation
||//\\|| ||//\\|| ||//\\||
C. Revenue procedures
||//\\|| ||//\\||
D. Internal Revenue Code - ✔✔D. Internal Revenue Code
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
In which publications does the IRS provide information on the tax consequences of specific
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
transactions encountered in practice? ||//\\|| ||//\\|| ||//\\||
A. Technical advice memoranda
||//\\|| ||//\\|| ||//\\||
B. Information releases
||//\\|| ||//\\||
C. Revenue rulings
||//\\|| ||//\\||
D. Official announcements - ✔✔C. Revenue rulings
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
,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 is true about horizontal equity?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. Taxpayers with a greater ability to pay tax paying more tax
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
B. Two taxpayers in similar situations paying the same tax
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
C. Taxpayers with a lesser ability to pay tax paying more tax
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
D. Horizontal equity does not exist in a federal tax structure. - ✔✔B. Two taxpayers in
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
similar situations paying the same tax ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
What is the nature of a progressive tax rate structure?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. Each taxpayer devotes the same percentage of income to pay the tax.
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
B. Lower-income taxpayers devote a greater percentage of income to pay the tax relative to
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
higher-income individuals. ||//\\||
C. The rate of tax increases as the tax base increases.
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
D. The rate of tax decreases as the tax base increases. - ✔✔C. The rate of tax increases as
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
the tax base increases.
||//\\|| ||//\\|| ||//\\||
Which tax rate structure is exemplified by the FICA portion of Social Security taxes?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
, A. Effective
||//\\||
B. Regressive
||//\\||
C. Progressive
||//\\||
D. Proportional - ✔✔B. Regressive
||//\\|| ||//\\|| ||//\\|| ||//\\||
An individual is salaried, is not operating a business, is divorced with one child living at
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
home, earned $93,000 in wages for 2021, and has $17,900 of itemized deductions.
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
What is this individual's tax liability?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. $6,682
||//\\||
B. $10,620
||//\\||
C. $10,818
||//\\||
D. $14,889 - ✔✔D. $14,889
||//\\|| ||//\\|| ||//\\|| ||//\\||
Which tax is based on the value of an individual's real estate?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. Property tax
||//\\|| ||//\\||
B. Franchise tax
||//\\|| ||//\\||
C. Federal estate tax
||//\\|| ||//\\|| ||//\\||
D. Wealth transfer tax - ✔✔A. Property tax
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Which entities are considered flow-through entities in the U.S. tax system?
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
A. Individual taxpayers
||//\\|| ||//\\||
B. Religious associations
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