The money you receive back because you have overpaid your taxes is called a tax return. a. true b. false

Discuss actions a taxpayer can take if it is anticipated that his income taxes will be substantially underpaid in order to minimize penalties.

2

Which of the following has the greatest effect of reducing tax payable through the acceleration of deductions?   a. Writing off any bad debts before the end of the income year.   b. Value trading stock at market selling value where the market selling value is higher than the cost or replacement price.   c. Ensuring investments are positively geared.   d. Value trading stock at market selling value where the market selling value is higher than thecost or replacement price.

QUESTION 4 Which of the following allow a tax filer to legally reduce the amount of tax owed? Select all that apply. O A. The standard deduction. B. Tax returns. C. Tax evasion. D. Tax exemption. E. FICA taxes paid. F. Tax credits. G. Itemized deductions. QUESTION 5 Which of the following best describes taxable income? O A. The sum of your adjusted gross income and earned income tax credit. B. The sum of your wage income, unemployment benefits, and interest. C. The amount of income on which taxes were withheld by your employer. D. The amount of income you have after subtracting allowable deductions and exemptions.

The tax laws treat capital gains and losses differently from ordinary gains and losses. True or false

For each of the following situations, indicate the amount of the penalty that could be imposed on the tax return preparer: a. A tax return preparer understates the taxpayer's tax liability with a frivolous position and does not disclose the position. The greater of $ percent of the income derived by the tax preparer for an undisclosed unrealistic position. or b. A tax return preparer fails to furnish his identifying number. c. A tax return preparer aids a taxpayer (an individual) in understating a tax liability. d. A tax return preparer endorses and cashes a client's tax refund check.

Valuation allowances reduce deferred tax liabilities to the amount that is more likely than not to be payable in the future. O True False

Gross income minus tax-exempt income equals adjusted gross income. True False

alculator Which of the following is not a preparer penalty? a.Tax preparers may be assessed a penalty for endorsing or cashing a refund check issued to a taxpayer. b.Tax preparers may be assessed a penalty for failing to give the taxpayer the preparer's workpapers. c.Tax preparers may be assessed a penalty for failing to keep a copy of the prepared return. d.Tax preparers may be assessed a penalty for failing to sign a tax return.