A = TRUE B = FALSE # 1-22 TRUE OR FALSE 1 e smte to legally arange their finandial affirs n a way which results in paying a lower tax. 2. No special election form is needed to qualify as a Sub Chapter S corporation. All you have to do is file the corporate income tax return on Form 1120s. 3. Complex tax returns are most efficiently prepared using computer software 4. The IRS and New York State generally require professional income tax return preparers to electronically submit income tax returns for their clients. 5. Dividends paid by a "C" company to shareholders are not deductible in arriving at the company's taxable income. 6. A dividend paid from the eamings of a "C company is taxable income to shareholder. 7. Jonathan lives in Connecticut and works in New York City. His salary income will be taxed by both Connecticut and New York. 8. Jonathan can lower his Connecticut tax by claiming a credit for the tax he pays to New York 9. A one member Limited Liability Company is also referred to as a 'disregarded entity 10. Professor Klein's lecture are boring. 11. Partnerships are required by law to be formally organized with an operating agreement. 12. Partnerships never have an account on their books for "Retained Earnings 13. Yourownership interest in a partnership is represented by your CAPITALACCOUNT. 14. Your ownership interest in any corporation is represented by your RETAINED EARNINGS 15. The General Partner of a partnership is personally liable for all of the debts and obligations of the partnership. 16. All tax items from a partnership "flow thru" to the individual partner's personal income tax return