Enter the appropriate word(s) to complete the statement. 1. After the completion of an audit, the taxpayer has 90 days to petition the Court to modify the proposed tax due. Indicate whether the statement is true or false. 2. In a limited liability partnership, all members may participate in management and generally have personal liability for entity debts except for malpractice committed by the other partners. a. True b. False Enter the appropriate word(s) to complete the statement. 3. The tax workpapers prepared as part of an independent financial audit are not privileged communications that can be kept confidential from an IRS subpoena. Indicate the answer choice that best completes the statement or answers the question. 4. Dan receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $30,000. The distribution consists of $10,000 in cash and property with an adjusted basis to the partnership of $24,000 and a fair market value of $26,500. Dan's basis in the noncash property is: a. $20,000. b. $24,000. c. $26,500. d. $10,000. Enter the appropriate word(s) to complete the statement. 5. An individual is not subject to an underpayment penalty until more than $ is due and unpaid through estimated taxes. Indicate the answer choice that best completes the statement or answers the question. 6. DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments of $20,000 to partner Percy. If Percy owns a 40% capital and profits interest, how much income will he report for the year and what is its character? a. $32,000 ordinary income, $1,600 interest income, $20,000 guaranteed payment. b. $32,000 ordinary income, $1,600 interest income. c. $24,000 ordinary income. d. $24,000 ordinary income, $1,600 interest income, $20,000 guaranteed payment