10/16/2015

AssignmentPrintView

Score:

1.

40/40

Points

100

Award: 10 out of 10.00 points

MoltoStanchaCorporationhadzeroearningsthisfiscalyearinfact,theylostmoney.Musttheyfileatax
return?

Yes,allcorporationsarerequiredtofileanincometaxreturnregardlessoftheir
taxableincome.

References
Multiple
Choice

LearningObjective:
0201Identifythe
filingrequirements
forincometax
returnsandthe
statuteoflimitations
forassessment.

MoltoStanchaCorporationhadzeroearningsthisfiscalyearinfact,theylostmoney.Musttheyfileatax
return?
Yes,allcorporationsarerequiredtofileanincometaxreturnregardlessoftheirtaxableincome.

Explanation:
Nofurtherexplanationdetailsareavailableforthisproblem.

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10/16/2015

2.

AssignmentPrintView

Award: 10 out of 10.00 points

TheestateofMoniqueChablisearned$450ofincomethisyear.Istheestaterequiredtofileanincometax
return?

No,becausetheestate'sgrossincomeislessthan$600,theestateisnot
requiredtofileanincometaxreturn.

References
Multiple
Choice

LearningObjective:
0201Identifythe
filingrequirements
forincometax
returnsandthe
statuteoflimitations
forassessment.

TheestateofMoniqueChablisearned$450ofincomethisyear.Istheestaterequiredtofileanincometax
return?
No,becausetheestate'sgrossincomeislessthan$600,theestateisnotrequiredtofileanincometax
return.

Explanation:
Nofurtherexplanationdetailsareavailableforthisproblem.

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10/16/2015

3.

AssignmentPrintView

Award: 10 out of 10.00 points

PaulacouldnotreachanagreementwiththeIRSatherappealsconferenceandhasjustreceiveda90day
letter.Ifshewantstolitigatetheissuebutdoesnothavesufficientcashtopaytheproposeddeficiency,
whatisherbestcourtchoice?

U.S.TaxCourt

References
Multiple
Choice

LearningObjective:
0202Outlinethe
IRSauditprocess,
howreturnsare
selected,the
differenttypesof
audits,andwhat
happensafterthe
audit.

PaulacouldnotreachanagreementwiththeIRSatherappealsconferenceandhasjustreceiveda90day
letter.Ifshewantstolitigatetheissuebutdoesnothavesufficientcashtopaytheproposeddeficiency,
whatisherbestcourtchoice?
U.S.TaxCourt

Explanation:
TheU.S.TaxCourt,theonlycourtthatallowstaxcasestobeheardbeforethetaxpayerpaysthedisputed
liability.

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4.

AssignmentPrintView

Award: 10 out of 10.00 points

Juanita,aTexasresident(5thCircuit),isresearchingataxquestionandfindsa5thCircuitcaserulingthat
isfavorableanda9thCircuitcasethatisunfavorable.Whichcircuitcasehasmoreauthoritativeweight?

5thCircuit.

References
Multiple
Choice

LearningObjective:
0203Evaluatethe
relativeweightsof
thevarioustaxlaw
sources.

Juanita,aTexasresident(5thCircuit),isresearchingataxquestionandfindsa5thCircuitcaserulingthat
isfavorableanda9thCircuitcasethatisunfavorable.Whichcircuitcasehasmoreauthoritativeweight?
5thCircuit.

Explanation:
The5thCircuitcasehasmoreauthoritativeweightbecauseJuanitalivesinthe5thCircuit.IfJuanitalived
in the 6th Circuit, the 5th and 9th Circuit cases would have equal weight. Juanita should be careful to
analyzebothcasestounderstandtheunderlyingreasoningforthedifferentopinions.

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