,DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th
Edition Spilker
Chapter 02
Tax Compliance, the IRS, and Tax Authorities
True / False Questions
1. Corporations are required to file a tax return annually regardless of their taxable income.
True False
2. The tax return filing requirements for individual taxpayers only depend on the taxpayer's filing
status.
True False
3. If a taxpayer is due a refund, she does not have to file a tax return.
True False
4. If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April
17th.
True False
5. If an individual taxpayer is unable to file a tax return by its original due date, the taxpayer can
request an automatic 9-month extension to file the return.
True False
6. An extension to file a tax return does not extend the due date for tax payments.
True False
2-1
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,DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th
Edition Spilker
7. The statute of limitations for IRS assessment generally ends four years after the date a tax return
is filed.
True False
8. For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.
True False
9. The IRS DIF system checks each tax return for mathematical mistakes and errors.
True False
10. 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.
True False
11. Office examinations are the most common type of IRS audit.
True False
12. The three basic types of IRS examinations are computer exams, office exams, and business
exams.
True False
13. The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree
to a proposed IRS adjustment on the taxpayer's income tax return.
True False
2-2
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, DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th
Edition Spilker
14. The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or
file a petition in the U.S. District Court to contest the adjustment and hear the case.
True False
15. If a taxpayer has little cash and a very technical tax case that she feels very strongly that the tax
rules are "on her side," she should prefer to have her case tried in the U.S. Tax Court.
True False
16. In researching a tax issue, Eric finds that the U.S. Circuit Court of Appeals for the Federal Circuit
previously has ruled in favor of his tax position, whereas the 11th Circuit (Eric's circuit) previously
has ruled against his tax position. If Eric is contemplating litigating his tax position with the IRS,
he should prefer to have his case first tried by the U.S. Tax Court.
True False
17. If a taxpayer loses a case at the Circuit Court level, he is granted an automatic appeal hearing
with the Supreme Court.
True False
18. Secondary authorities are official sources of the tax law with a lesser "weight" than primary
authorities.
True False
19. Revenue rulings and revenue procedures are examples of primary authorities.
True False
20. The Internal Revenue Code and tax treaties are examples of statutory authorities.
True False
2-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
Edition Spilker
Chapter 02
Tax Compliance, the IRS, and Tax Authorities
True / False Questions
1. Corporations are required to file a tax return annually regardless of their taxable income.
True False
2. The tax return filing requirements for individual taxpayers only depend on the taxpayer's filing
status.
True False
3. If a taxpayer is due a refund, she does not have to file a tax return.
True False
4. If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April
17th.
True False
5. If an individual taxpayer is unable to file a tax return by its original due date, the taxpayer can
request an automatic 9-month extension to file the return.
True False
6. An extension to file a tax return does not extend the due date for tax payments.
True False
2-1
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th
Edition Spilker
7. The statute of limitations for IRS assessment generally ends four years after the date a tax return
is filed.
True False
8. For fraudulent tax returns, the statute of limitations for IRS assessment is ten years.
True False
9. The IRS DIF system checks each tax return for mathematical mistakes and errors.
True False
10. 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.
True False
11. Office examinations are the most common type of IRS audit.
True False
12. The three basic types of IRS examinations are computer exams, office exams, and business
exams.
True False
13. The "30-day" letter gives the taxpayer the opportunity to request an appeals conference or agree
to a proposed IRS adjustment on the taxpayer's income tax return.
True False
2-2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Essentials of Federal Taxation 2017 8th
Edition Spilker
14. The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or
file a petition in the U.S. District Court to contest the adjustment and hear the case.
True False
15. If a taxpayer has little cash and a very technical tax case that she feels very strongly that the tax
rules are "on her side," she should prefer to have her case tried in the U.S. Tax Court.
True False
16. In researching a tax issue, Eric finds that the U.S. Circuit Court of Appeals for the Federal Circuit
previously has ruled in favor of his tax position, whereas the 11th Circuit (Eric's circuit) previously
has ruled against his tax position. If Eric is contemplating litigating his tax position with the IRS,
he should prefer to have his case first tried by the U.S. Tax Court.
True False
17. If a taxpayer loses a case at the Circuit Court level, he is granted an automatic appeal hearing
with the Supreme Court.
True False
18. Secondary authorities are official sources of the tax law with a lesser "weight" than primary
authorities.
True False
19. Revenue rulings and revenue procedures are examples of primary authorities.
True False
20. The Internal Revenue Code and tax treaties are examples of statutory authorities.
True False
2-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
