Which of the following would not be a failure of the horizontal equity concept?

A) Two taxpayers with identical income pay different amounts of tax because one taxpayer's income includes tax-exempt interest.
B) Two taxpayers pay different property tax amounts on similar plots of land (i.e., same value) because one plot of land is used to raise crops.
C) Two taxpayers pay different amounts of estate tax because one taxpayer's estate is worth significantly more.
D) All of the choices are correct.
E) None of the choices are correct.

Which of the following is not a factor that determines whether a taxpayer is required to file a tax return?

A) Filing status
B) Taxpayer's gross income
C) Taxpayer's employment
D) Taxpayer's age
E) None of the choices are correct.

If Paula requests an extension to file her individual tax return in a timely manner, the latest she could file her return without a failure-to-file penalty is:

A) September 15 th.
B) October 15 th.
C) August 15 th.
D) November 15 th.
E) None of the choices are correct.

Bill filed his 2021 tax return on March 15 th, 2022. The statute of limitations for IRS assessment on Bill's 2021 tax return should end:

A) March 15 th, 2024.
B) April 15 th, 2024.
C) March 15 th, 2025.
D) April 15 th, 2025.
E) None of the choices are correct.

Martin has never filed a 2021 tax return despite earning approximately $30,000 providing landscaping work in the community. In what tax year, will the statute of limitations expire for Martin's 2021 tax return?

A) 2024
B) 2025
C) 2028
D) 2029
E) None of the choices are correct.

Which of the following audits is the least common, broadest in scope, and typically most complex?

A) Correspondence
B) Targeted
C) Office
D) Field
E) None of the choices are correct.

Which of the following courts is the only court that provides for a jury trial?

A) Tax Court
B) U.S. Court of Federal Claims
C) U.S. District Court
D) U.S. Circuit Court of Appeals
E) None of the choices are correct.

Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda should litigate in the:

A) U.S. District Court
B) U.S. Circuit Court of Appeals
C) U.S. Court of Federal Claims
D) Tax Court
E) None of the choices are correct.

If the president vetoes tax legislation, Congress:

A) cannot override the president's veto.
B) can override the president's veto with a 50 percent positive vote in the House and Senate.
C) can override the president's veto with a two-thirds positive vote in the House and Senate.
D) can override the president's veto with a 75 percent positive vote in the House and Senate.
E) None of the choices are correct.

The goal of tax planning generally is to:

A) minimize taxes.
B) minimize IRS scrutiny.
C) maximize after-tax wealth.
D) support the federal government.
E) None of the choices are correct.

The constructive receipt doctrine:

A) is particularly restrictive for accrual-basis taxpayers.
B) causes income to be recognized before it is actually received.
C) causes income to be recognized after it is actually received.
D) applies equally to income and expenses.
E) None of the choices are correct.

A taxpayer paying his 10-year-old daughter $50,000 a year for consulting likely violates which doctrine?

A) Constructive receipt doctrine
B) Implicit tax doctrine
C) Substance-over-form doctrine
D) Step-transaction doctrine
E) None of the choices are correct.

A taxpayer instructing her son to collect rent checks for the taxpayer's property and to report this as taxable income on the son's tax return violates which doctrine?

A) Constructive receipt doctrine
B) Implicit tax doctrine
C) Assignment of income doctrine
D) Step-transaction doctrine
E) None of the choices are correct.

Answer rating: 100% (QA)

The Constructive Receipt Doctrine is a fundamental concept in tax law that dictates when income is taxable even if not physically received It applies ... View the full answer