Ron, a calendar year taxpayer subject to a 35% marginal taxrate, claimed a Form 1040 charitable contribution deduction of$250,000 for a sculpture that the IRS later valued at $150,000. Theapplicable overvaluation penalty is:
A. $0
B. $7,000
C. $10,000 (maximum penalty)
D. $14,000
Concerning a taxpayerâs requirement to make quarterly estimatedtax payments:
A. An individual must make estimated payments if his or her balancedue for the Federal income tax for the year will exceed $1,000.
B. The due dates of the payments for a calendar-year C corporationare March, June, September, and December 15.
C. A C corporation must make estimated payments if its Federalincome tax liability for the year will exceed $250.
D. A trust is not required to make estimated payments.
Circular 230 allows a tax preparer to:
A. Take a position on a tax return that is contrary to a decisionof the U.S. Supreme Court.
B. Operate the âTax Nerdâs Blogâ on the Internet.
C. Charge a $5,000 fee to prepare a Form 1040EZ.
D. Avoid signing a tax return that is likely to be audited.
Which transaction affects the Other Adjustments Accounton an S corporationâs Schedule M-2?
Charitable contributions
Unreasonable compensation
Payroll tax penalty assessed
Domestic production activities deduction
None of the above
Which of the following foreign taxes paid by a U.S.corporation is eligible for the foreign tax credit?
Real property taxes
Value added taxes
Dividend withholding taxes
Sales taxes
Ron, a calendar year taxpayer subject to a 35% marginal taxrate, claimed a Form 1040 charitable contribution deduction of$250,000 for a sculpture that the IRS later valued at $150,000. Theapplicable overvaluation penalty is:
A. $0
B. $7,000
C. $10,000 (maximum penalty)
D. $14,000
Concerning a taxpayerâs requirement to make quarterly estimatedtax payments:
| A. | An individual must make estimated payments if his or her balancedue for the Federal income tax for the year will exceed $1,000. | |
| B. | The due dates of the payments for a calendar-year C corporationare March, June, September, and December 15. | |
| C. | A C corporation must make estimated payments if its Federalincome tax liability for the year will exceed $250. | |
| D. | A trust is not required to make estimated payments. |
Circular 230 allows a tax preparer to:
| A. | Take a position on a tax return that is contrary to a decisionof the U.S. Supreme Court. | |
| B. | Operate the âTax Nerdâs Blogâ on the Internet. | |
| C. | Charge a $5,000 fee to prepare a Form 1040EZ. | |
| D. | Avoid signing a tax return that is likely to be audited. |
Which transaction affects the Other Adjustments Accounton an S corporationâs Schedule M-2?
Charitable contributions | ||
Unreasonable compensation | ||
Payroll tax penalty assessed | ||
Domestic production activities deduction | ||
None of the above |
Which of the following foreign taxes paid by a U.S.corporation is eligible for the foreign tax credit?
Real property taxes | ||
Value added taxes | ||
Dividend withholding taxes | ||
Sales taxes |
