California imposes a Non-Economic Substance Penalty (NEST) on a taxpayer with an understatement of $10,000 on their filed tax return. What is the amount of the NEST penalty for this taxpayer? The transaction was NOT adequately disclosed.

16. Is this statement true about underpayment penalties.   A. The taxpayer will never receive an underpayment penalty as long as their taxes are paid before their original due date.    B. If this is for the first time you have received this penalty you may request a penalty abatement with the IRS.    C. Penalties are assessed when the tax is underpaid by more than 50%.

Which of the following statements is false? Select one: O A. In general, individual taxpayers are required to file a tax return only if their gross income exceeds the standard deduction OB. The penalty for failure to file is more severe than the penalty for failure to pay OC. Taxpayers may file a tax return even when they are not required to do so to obtain a refund of income taxes withheld OD. Individual tax returns are always due on April 15 for calendar-year individuals

A tax preparer may be subject to a $540 preparer penalty under IRC 56695(g) Select one: O a For failure to comply with due diligence requirements limited to a maximum of $540 O b. For each failure to comply with the due diligence requirements OC. For failure to file Form 8879 O d For including a Schedule A when filing a return using the standard deduction O e. None of these Jeff is a single taxpayer who sold his home when he was transferred from NY to Denver by his employer. He purchased the home on January 10, 2013 He was sent by his Cempany for temporary assignment to Detroit on February 1, 2016, that lasted for longer and was gone for 16 months in 2016 and 2017, during which time he rented out his home. He moved back into the home on June 3, 2017 He sold the home on March 15, 2020. Jeff can claim an exclusion of gain on the sale up to Select one EO a $500.000 O b. $300,000 O C $250,000 Od so