Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: $fill in the blank 1 On Davis: $fill in the blank 2. b. A second-level tax in the amount of $fill in the blank 3 is imposed on Davis.
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Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $70,600. Davis does not pay back the excess benefits to the organization before the first-level tax is due.
a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows:
On the exempt organization management: $fill in the blank 1
On Davis: $fill in the blank 2.
b. A second-level tax in the amount of $fill in the blank 3 is imposed on Davis.
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- Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $79,000. Davis does not pay back the excess benefits to the organization before the first-level tax is due. a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: $ 19,750 X On Davis: $ 7,900 X.Which of the following is NOT true about an RESP? Select one: a. Withdrawals are taxed in the hands of the beneficiary b. There is a lifetime contribution limit per beneficiary c. The federal government subsidizes the parents' deposits with a grant d. Deposits are not deductible, beneficiary's withdrawals are not taxableWhich of the following is not correct? a. Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes. b. A VAT registered taxpayer can pass on the VAT even to non-VAT registered buyers. c. Services subject to specific percentage tax shall not be subject to VAT regardless whether their annual gross sales or gross receipts exceed P3,000,000. d. None of the above.
- For an accrual basis taxpayer, the all events test is not met until economic performance occurs. Economic performance occurs: (a.) When a corporation receives its completed tax return from its accountant (b.) When the employees of self-insured corporation receive medical treatment (c.) When a corporation purchases a $5 million annuity in settlement of $20 million award to a plaintiff/customer in a production liability lawsuit (d.) On March 1, when a corporation uses a leased copy machine to make 12,000 copies for the month of March and it must pay $.10 per copy for copies mad in excess 10,000 plus a flat fee of $500/month.14. If the taxpayer failed to pay the tax demanded per final assessment, the government may exercise several administrative remedies. Which of the following is not correct? Levy of real property of the taxpayer may be availed of only after distraint of personal property of taxpayer. Either distraint or levy may be pursued simultaneously once the assessment becomes final and demandable. If the tax assessed is P 100 and below, levy or distraint may not be availed of. The remedy of distraint of personal property may be repeated if necessary until the full amount due and all expenses are collected.Which of the following charitable contributions is not tax deductible? a.Clothing donated to a qualified veterans' organization. b.Cash donated to a qualified church. c.Time donated to a qualified veterans' organization. d.Donation of a car to a qualified nonprofit organization. e.All of these choices are tax deductible.
- The following expenses are non-deductible, except: * Premiums paid for life insurance of an officer where the taxpayer-business is the beneficiary Expenses of non-profit organizations from their exempt operations. Expenses of enterprises registered with PEZA which enjoys special tax privilege Premiums paid for the life insurance of an officer where the beneficiary is the officer himself or his heirs.TRUE OR FALSE? The levy may be repeated until the full amount due, including all expenses is collected. Under Title I, Sec. 3 of the National Internal Revenue Code, the BIR shall be headed by the Commissioner and to be assisted by four (4) deputy commissioners. Whenever there is a violation of the due process of law, the taxpayer may file a motion for cancellation to the BIR or Court to stop the tax assessment.17.A doctor pays his children $100,000 each year for "consulting services". The IRS plans to disallow that amount as a deduction on the doctor's business tax return (Form 1120). The children reported the income they received as wage income. However, the income is taxed at a relatively modest marginal income tax rate. Are there any steps that should be taken to protect the doctor and his children? a.Nothing at this time. Plan to vigorously contest the deduction disallowance. b.Extend the statute of limitations on assessment of the Form 1120, thus delaying any action on the children's tax returns. c.File Form 1040X on behalf of the children making a protective refund claim of the income tax the children paid. Also request a refund of any employment tax. d.File an amended Form 1120X protecting the parties and reallocating the payments to the children as a loan to the doctor/shareholder.
- Example 1 concludes that Miranda cannot deduct her annual CPA license fee because her mother paid it for her. Correspondingly, Example 2 concludes that Marty’s mother cannot deduct her annual property taxes since Marty paid them for her. Are these two examples consistent with the Tax Court’s reasoning in Lang? Why or why not? plzzz and asap..... (Hint: Example1 Miranda is a public accountant and is required by state law to have a license to practice public accounting. When the state license renewal fee comes due, Miranda is short of money and cannot renew her license. Miranda’s mother pays the license renewal fee for her so she can continue working as a public accountant. Can Miranda deduct the fee as a business expense? Discussion: The license renewal fee is Miranda’s business expense, and only she can deduct the payment of the fee. Because Miranda does not pay the license renewal fee, she is not allowed a deduction for the business expense. Because the license renewal fee is not…A tax preparer may be subject to a $540 preparer penalty under IRC 56695(g) Select one: O a For failure to comply with due diligence requirements limited to a maximum of $540 O b. For each failure to comply with the due diligence requirements OC. For failure to file Form 8879 O d For including a Schedule A when filing a return using the standard deduction O e. None of these Jeff is a single taxpayer who sold his home when he was transferred from NY to Denver by his employer. He purchased the home on January 10, 2013 He was sent by his Cempany for temporary assignment to Detroit on February 1, 2016, that lasted for longer and was gone for 16 months in 2016 and 2017, during which time he rented out his home. He moved back into the home on June 3, 2017 He sold the home on March 15, 2020. Jeff can claim an exclusion of gain on the sale up to Select one EO a $500.000 O b. $300,000 O C $250,000 Od soThe Trump tax changes (i.e., the TCJA) allows deductions (either as a FOR or FROM AGI Deduction) for all of the following except: Multiple Choice All of these are allowed deductions under the TCJA Casualty losses on personal use assets in a Presidentially-Declared Disaster Area. Unreimbursed employee business expenses. Penalties for the early withdrawal of savings. Gambling losses