Questions from Federal Taxation

Q: For three generations, the Dexter family has sent its children to

For three generations, the Dexter family has sent its children to Private University, preparing them for successful professional careers. The Edna Dexter Trust was established in the 1950s by LaKeisha...

Q: Indicate whether each of the following parties could be subject to the

Indicate whether each of the following parties could be subject to the tax preparer penalties. a. Tom prepared Sally’s return for $250. b. Theresa prepared her grandmother’s return for no charge. c. G...

Q: Using PowerPoint slides, list at least three of the Statements on

Using PowerPoint slides, list at least three of the Statements on Standards for Tax Services that apply to CPAs. For each standard you choose, provide a short explanation of its content.

Q: Alexi files her tax return 20 days after the due date.

Alexi files her tax return 20 days after the due date. Along with the return, she remits a check for $3,000, which is the balance of the tax she owes. Disregarding any interest liabilities, compute Al...

Q: Marcella (a calendar year taxpayer) purchased a sculpture for $

Marcella (a calendar year taxpayer) purchased a sculpture for $5,000. When the sculpture is worth $12,000 (as later determined by the IRS), Marcella donates it to the Peoria Museum of Art, a public ch...

Q: Rivera underpaid her income tax by $45,000. The

Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud. a. Determine Rivera’s civil fraud penalty. b. Rivera pays the penalty five years after...

Q: On June 15, 2014, Sheridan filed his 2013 income tax

On June 15, 2014, Sheridan filed his 2013 income tax return reflecting a tax of $10,500. On October 5, 2015, he filed an amended 2013 return showing an additional $6,400 of tax, which he paid with the...

Q: Gordon paid the $10,000 balance of his Federal income

Gordon paid the $10,000 balance of his Federal income tax three months late. Ignore daily compounding of interest. Determine the interest rate that applies relative to this amount, assuming that: a. G...

Q: Your tax client Chen asks whether it is likely that her Form

Your tax client Chen asks whether it is likely that her Form 1040 will be audited this year. You suspect that Chen might modify the information she reports on her return based on your answer. Address...

Q: Rita forgot to pay her Federal income tax on time. When

Rita forgot to pay her Federal income tax on time. When she actually filed, she reported a balance due. Compute Rita’s failure to file penalty in each of the following cases. a. Two months late, $1,00...