please answer the following questions Lesson 16 , what is 263. If a taxpayer fai
ID: 2602716 • Letter: P
Question
please answer the following questions
Lesson 16 , what is 263. If a taxpayer fails to file a return and it is no more than 60 days past the due date (including extensions) usually the penalty for failure to file? A, 5% for each month, but not more than 25% B 10% for each month, but not more than 30% C. 15 % for each month, but not more than 35% D. 20% for each month, but not more than 40% 264. What is the penalty for a tax retun filed with an accuracy error based on either substantial u negligence? A, A fat 10 % of the net understatement of the tax B. A flat 15 % of the net understatement of the tax C. A flat 20 % of the net understatement of the tax D. A flat 25 % of the net understatement of the tax angements ecrecy laws of some foreign jurisdictions and y of creditudebit cards issued from offshore financial institutions. Generally, these schemes are 265. Abusive tax schemes have evolved from simple structuring of abusive domestic and foreign trust an into sophisticated strategies that take advantage of the financial s acterized by the use of all of the following flow-through entities except A. Intemational Business Companies B. Foreign Trusts C. Qualifiad Intermediaries D. Foreign Partnerships 266. Section 6662 d1) gener raly defines "substantial understatement of income tax to be an understatement for the taxable year that exceeds the greater of what percentage of the correct tax required to be shown on the $5,000? A. B C D, 10% 20% 25% 30% 267. If a taxpayer alters or strikes out the preprinted language above the space provided for the taxpayer's signature on Form 1040, he or she may have to pay a frivolous return penalty in which amount? A $1,000 B $2.500 C. $5.000 D $7.500 Lesson 17 268 Which of the following is true regarding Treasury Circular 2307 A The circular contains the rules regarding eligibility to become an enrolled agent and renewal of enrolilment B The circular contains rules of conduct applicable to enrolled agents, enrolled retirement plan agents registered tax return preparers, and enrolled actuaries, but not attorneys or certified public accountants C. The circular contains rules regarding disciplinary actions for tax return preparers who are not enrolled agents, registered tax return preparers, CPAs, or attorneys D. The circular contains rules of conduct applicable to attorneys or certified public accountants, but not enrolled agents, enrolled retirement plan agents, registered tax return preparers, and enrolled actuaries EX-41 201 71RSTaxTrainingeom IncExplanation / Answer
263.
There is a penalty for failure to file a tax return by the due date, including extensions: 5% per month until a maximum of 25% is imposed on the amount of tax due, if the due is not late than 60 days. Thus answer would be Option A
264.
Option C, flat 20% would be the penaly imposable on the net understatement of tax as per Internal Revenue Code (IRC) §§ 6662(b)(1) and (2) which authorize IRS to impose a penalty if a taxpayer’s negligence or disregard of rules or regulations caused an underpayment of tax.
265.
Anwer would be Option D, forieng partnerships. Instead LLP or LLC shall be used as recognized by IRS
266.
As per Internal Revenue Code (IRC) §§ 6665(d)(1), a substantial understatement of the tax liability occurs when the understatement exceeds the larger of 10% of the tax due or $5,000 for an individual or $10,000 for a C corporation.
Quoting the language of question answer would be for individual i.e. 10% of the tax due or $5,000 , option A
267.
As per Notice 2010-33, 2010-17 I.R.B. 609, penaly of $ 5000 is imposable for Penalty for frivolous return. Thus answer would Option C, $ 5000
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