Which of the following is not true?O A taxpayer must obtain approval or consent of the IRS to change their taxable year onceadopted.O In certain cases, a taxpayer may change their method of accounting because automatic consenthas been provided in an applicable revenue procedure.O A taxpayer's method of accounting must clearly reflect income.A taxpayer must obtain approval or consent of the IRS to adopt a method of accounting for anew trade or business.

A taxpayer is an individual or entity that is obligated to pay taxes to a governmental authority,…

Answered: Which of the following is not true? A…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 3BCRQ

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Similar questions

If the IRS owes a taxpayer a refund, the law generally provides that the IRS must pay interest on the refund if it is not paid within __________ days of the tax-payer filed his or her tax return or claim for refund. 30 45 60 90 None of the above
If a U.S. Tax Court agrees with the taxpayer on appeal that the IRS position was largely unjustified, which of the following is correct? The taxpayer must still pay administrative and litigation costs. The taxpayer may recover administrative but not litigation costs. The taxpayer may recover litigation but not administrative costs. To be eligible to recover some of the administrative and litigation costs, the taxpayer must have tried to resolve the case administratively, including going through the appeals process, and must have given the IRS the information necessary to resolve the case. None of the above.
Which of the following statements is correct? a.The taxpayer has the right to object to a tax assessment anytime after receiving an Assessment Notice. b.The taxpayer must state the grounds of objection in his/her Notice of Objection c.The Tax Commissioner must accept a Return once it is filed on time. d.The Taxpayer has the right to object to an assessment within the timeframe specified on the Assessment Notice.
The IRS does not have the authority to: a.Summon taxpayers to make them appear before the IRS. b.Summon third parties for taxpayer records. c.Examine a taxpayer's books and records. d.Place a lien on taxpayer property. e.The IRS has the authority to do all these.
The taxpayer's marginal federal and state tax rate is 25%. Which would the taxpayer prefer? O A. $1.40 taxable income rather than $1.00 tax-exempt income. B. $1.00 taxable income rather than $1.25 tax-exempt income. O c. $1.00 taxable income rather than $.75 tax-exempt income. O D. $1.25 taxable income rather than $1.00 tax-exempt income.
Which of the following is correct? a. A person with vatable sales or receipts not exceeding the VAT-threshold may register as non-VAT taxpayer. b. A person with vatable sales or receipts not exceeding the VAT-threshold may register as VAT taxpayer. c. A person who commences business with an expectation to exceed the VAT-threshold may register as VAT taxpayer. d. All of the above
When a taxpayer has not paid a tax assessment, the IRS can:
Which of the following statements are correct? i. A VAT invoice should be pre-numbered and must show the: - Words “Tax Invoice” (shown prominently) ii. A VAT invoice should display the total amount of the consideration and the VAT. iii. A VAT invoice should display the name and address of the registered taxpayer to whom the taxable supply is made. iv. A VAT invoice should display the date of the taxable supply. a.All of the above b.i, ii and iv c.i, and iii d.i only
Which of the following statements are correct? i. A VAT invoice should be pre-numbered and must show the: - Words “Tax Invoice” (shown prominently) ii. A VAT invoice should display the total amount of the consideration and the VAT. iii. A VAT invoice should display the name and address of the registered taxpayer to whom the taxable supply is made. iv. A VAT invoice should display the date of the taxable supply. a. All of the above b. i, ii and iv c. i only d. i, and iii
If the applicable statute of limitations on assessment of a tax deficiency has expired and a taxpayer signs a Form 872 extending the statute of limitations, the statute of limitations on assessment is extended. a). True b). False.
n situations where there is no requirement for the taxpayer to provide documentation to substantiate their Earned Income Credit claim, tax preparers can protect and prepare the taxpayer by advising them on the documentation that will substantiate their claim. Specifically, which form is most helpful to substantiate this type of claim? Form 886-DEP. Form 886-HOH. Form 886-EIC. Form 8887.
An assessment is made on a prescribed form which must be served on the taxpayer. The following are TRUE regarding types of assessment EXCEPT: a. Additional assessment (Form CP61) - additional assessment raised by the DG in the event of omission by the taxpayer, error or refund, or additional income not considered Reduced assessment (Form CP56) - appeal made by the taxpayer to reduce tax and being approved by the DG Original assessment (Form CP9) - based on information provided by the taxpayer d. Conditional assessment (Form CP10) – comprises a few YA and usually include penalty A person does not have to complete a return form if he has no income or chargeable income. Select one: O True False

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