For a cash basis taxpayer, income that has not actually been received by the taxpayer is taxed as though it had been received, thus income is considered constructively received when (mark apply that apply): A. The constructive receipt doctrine does not apply to income the taxpayer is not yet entitled to receive. B. The purpose of the constructive receipt doctrine is to prevent a cash basis taxpayer from deferring the recognition of income that, although not yet received, has been made practically available to the taxpayer. OC. The taxpayer's actual receipt is not subject to substantial limitations or restrictions. D. The amount is made readily available to the taxpayer. None of these are true

For a cash basis taxpayer, income that has not actually been received by the taxpayer is taxed as though it had been received, thus income is considered constructively received when (mark apply that apply): A. The constructive receipt doctrine does not apply to income the taxpayer is not yet entitled to receive. B. The purpose of the constructive receipt doctrine is to prevent a cash basis taxpayer from deferring the recognition of income that, although not yet received, has been made practically available to the taxpayer. OC. The taxpayer's actual receipt is not subject to substantial limitations or restrictions. D. The amount is made readily available to the taxpayer. None of these are true

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exclusion from gross income refers to income received or earned but is nottaxable as income because it is exempted by law or by treaty a.true b.false
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With respect to transaction and translation gains and losses: a. transaction gains and losses are taxable but have no immediate cash flow impact. b. transaction gains and losses have immediate cash flow and tax consequences, translation gains and losses have neither. c. transaction gains and losses have an immediate cash flow impact, but taxation is deferred until the related assets are sold. d. transaction and translation gains are taxable, but only transaction losses are tax deductible.
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If the carrying amount of an asset is higher than the tax base, the difference will result in deferred tax liability. Required: True or False
14. If the taxpayer failed to pay the tax demanded per final assessment, the government may exercise several administrative remedies. Which of the following is not correct? Levy of real property of the taxpayer may be availed of only after distraint of personal property of taxpayer. Either distraint or levy may be pursued simultaneously once the assessment becomes final and demandable. If the tax assessed is P 100 and below, levy or distraint may not be availed of. The remedy of distraint of personal property may be repeated if necessary until the full amount due and all expenses are collected.
Which of the following is accurate regarding a real estate foreclosure transaction? A A foreclosure transaction can never involve recourse debt. B A foreclosure transaction can never involve nonrecoursedebt. C A foreclosure transaction has no federal income taxconsequences for the borrower. D A foreclosure transaction can have significant federalincome tax consequences for the borrower.
When a petition is filed with the Tax Court, the taxpayer is required to pay the deficiency only if he loses, not before. (True/False)
In what circumstances can a taxpayer challenge an assessment outside the ordinary appeal process. Discussion should be strictly based on statutory and common law. Explain briefly.
All are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. c. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. d. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumed
The IRS does not have the authority to: a.Summon taxpayers to make them appear before the IRS. b.Summon third parties for taxpayer records. c.Examine a taxpayer's books and records. d.Place a lien on taxpayer property. e.The IRS has the authority to do all these.
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.