7.
The taxpayer made an effort to obtain assistance or information necessary to complete the
return by a personal appearance at an IRS office but was unsuccessful because the taxpayer, through no fault, was unable to see an IRS representative.
8.
The taxpayer is unable to obtain the records necessary to determine the amount of tax due
for reasons beyond the taxpayer’s control.
9.
The taxpayer contacts a competent tax adviser, furnishes the necessary information, and then is incorrectly advised that the filing of a return is not required.
Question 31 – Chapter 3
Compute Marie’s taxable income for 2023, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000, and she has itemized deductions of $21,800.
Since personal exemptions have been suspended until 2025 and Marie is filing for 2023 her only deduction will be $21,800. Meaning that the total taxable income for Marie is her gross income of $70,000 minus his itemized deductions of $21,800 which equals $48,200.
Question 47 – Chapter 3
Which of the following individuals are required to file a tax return for 2023? Assume no tax has been withheld.
Rebecca, single and with no dependents, earned $14,200 for the year.
The 2023 threshold for filling taxes for single individuals is more than $13,800. Since Rebecca made more than the standard threshold, she will need to file taxes for 2023.
Hugh and Jane are married and file a joint return. They have four children. Their gross income is $30,000 and they have itemized deductions of $25,000.
Since Hugh and Jane have a gross income of $30,000 and itemized reductions of $25,000, they are under the tax threshold and for that reason they do not have to file taxes for 2023. However, they might want to as they have children and may qualify for the Child Tax Credit.
Peter has self-employment income of $450. He is a full-time college student and is claimed as a dependent on his parents’ return.
The standard deduction threshold is different for dependents at $400. Since Peter is earning $450
he is over the threshold and needs to file a tax return in 2023.
