CHPT 1 homework

Which of the following trial court(s) hear(s) tax cases?

US tax court; US district courts; US court of federal claims

Wage income is reported to a taxpayer on a Form:

W-2

Elizabeth determined that her tax liability was $3,492. Her employer withheld $3,942 from her paychecks during the year. Elizabeth's tax return would show:

a refund of $450

A preparer tax identification number must be obtained by:

any individual who is paid to prepare a tax return

a paid preparer must not:

cash a client's IRS check

Which of the following is an example of a progressive tax?

federal income tax

Which of the following is a statutory source of tax authority?

internal revenue code

Which of the following types of IRS Regulations have the greatest strength of authority?

legislative regulations

A tax rate that decreases as the tax base decreases is an example of what kind of tax rate structure?

progressive

Jake earned $15,000 and paid $1,500 of income tax; Jill earned $40,000 and paid $4,000 of income tax. The tax rate structure they are subject to is:

proportional

Which of the following refers to an income tax regulation?

reg. $1.162-5

Margaret earned $15,000 and paid $1,500 of income tax; Mike earned $50,000 and paid $4,000 of income tax. The tax rate structure they are subject to is:

regressive

a tax rate that decreases as the tax base increases is an example of what kind of tax rate structure?

regressive

a paid preparer must:

sign all tax returns she or he prepares

Which of the following is not a permitted filing status?

single filing jointly

Which of the following is an example of a regressive tax?

social security tax

Which of the following is (are) primary sources of tax authority?

statutory sources, admin. sources, judicial sources

A married taxpayer who files the return jointly, has taxable income of $52,717. You have calculated tax liability using the tax tables and using the tax rate schedules. What can you say about the two figures?

tax liability determined using the tax tables will be more than tax liability determined using the tax rate schedules

Sandra, a single taxpayer, has taxable income of $94,355. Using the tax tables, she has determined that her tax liability is:

$16,825

Eddie, a single taxpayer, has W-2 income of $36,741. Using the tax tables, he has determined that his tax liability is:

$2,749

On Form 1040, the amount of the standard deduction from income for taxpayers filing a joint return is:

$24,400

Arno and Bridgette are married and have combined W-2 income of $76,441. They received a $538 refund after they filed their taxes. How much income tax did their employers withhold during the year? Use the tax tables.

$6,393

Individual taxpayers with only wage income must file a Form:

1040

Interest income is reported to a taxpayer on a Form:

1099-INT

Jennifer and Paul, who file a joint return, have taxable income of $82,825 and the following tax liability: insert graph their marginal tax rate is:

12%

Jennifer and Paul, who file a joint return, have taxable income of $82,825 and the following tax liability: insert graph their marginal tax rate is:

22%