In appropriate situations the IRS may assert
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- In appropriate situations the IRS may assert
- That the Corporation be disregarded as a sham or nominee
- That income reported by the Corporation belongs on the shareholder’s personal Form 1040 Schedule C under the assignment of income principles.
- Income is reallocated under §482 to unrelated organizations
- Tax benefits may be denied under §269 if control of a Corporation is acquired for a purpose of avoiding federal income tax.
- All of the above
- All of the above except C
- All of the above except D
- All of the above except C & D
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- Which of the following is wrong? Exempt corporations are subject to income tax on their income from unrelated activities. Government-Owned and Controlled Corporations are subject to regular corporate income tax. Exempt corporations who filed late are not subject to penalties because they have no tax due. None of the above.Statement 1: Government owned and controlled corporations are taxable on their income as such. Statement 2: Social Security System (SSS), a GOCC, is tax-exempt on its income as such. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is trueIdentify a CORRECT statement: * Government owned and controlled corporations are tax exempt on their income as such. A government unit engaged in profit-oriented activity is taxable on its income from said activity. Purchases of goods and services of non-stock and non-profit corporations are exempted from VAT. All of the above None of the above
- True or False:An S Corporation is never subject to any federal income tax.An S corporation is subject to the following tax(es). a.Corporate income tax. b.Built-in gains tax. c.Alternative minimum tax. d.None of these choices are correct.Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as partnerships for Federal income tax purposes. c. Distributions of appreciated property are taxable to the S corporation. d. All of these choices are correct.
- If civil tax fraud pursuant to IRC § 6663 is asserted by the IRS, the burden of proof falls upon the IRS by what standard? Select one: a. beyond reasonable doubt b. clear and convincing c. preponderance of evidence d. the taxpayer because the IRS.Which of the following statements is true regarding the calculation of a C corporation's taxable income and tax liability? A. Business bad debts are allowed as an ordinary business deduction if the direct write-off method is used. B. Charitable contributions are considered a special deduction rather than part of ordinary business deductions. C. The foreign tax credit is applied to taxable income before multiplying by the tax rate to determine gross tax liability. D. The dividends received deduction is used to determine income before NOL and special deductions. 2. As the result of an IRS audit of a C corporation and its sole shareholder, the IRS agent proposes that a portion of the shareholder's salary is unreasonable. Because the corporation has significant earnings and profits, the agent has determined that the unreasonable portion of the salary is a dividend. Which of the following is correct regarding the impact of the proposed adjustment to both the…Which is NOT a constitutional limitation on the power of taxation?a. Application of the same law with the same taxapayersb. No person shall be imprisoned for non-payment of taxc. The requirement of notice and hearing in assessmentd. The state, unless declared void by the courts, cannot renege on its obligation or contractual agreements
- Which circumstance is an example of why Congress established the nonrecognition of gain or loss when an individual forms a corporation? O A taxpayer's choice of entity formation is impeded by Congress. O A substantive change in a taxpayer's investment has occurred. O A substantive change in a taxpayer's investment has not yet occurred. O A taxpayer's economic status has changed.Which of the following statements is the most correct regarding The Taxpayer Bill of Rights? a.It states that a taxpayer is responsible for payment of only the correct amount of tax due, no more, no less. b.It explains the examination, appeal, collection, and refund process. c.It directs taxpayers to other IRS publications with more details on specific taxpayer rights. d.All of these statements are correct. e.None of these statements are correct.Tax laws, being imposition of burden, shall be strictly construed against: * A person who refuses to pay the tax The taxpayer The government Either the taxpayer or the government, depending on the evidence presented