Under a self-assessment system, taxpayers are required to: i. file estimated income tax returns. ii. make quarterly estimated payments. iii. file final annual income tax return; and pay the difference between the estimated income tax return and the final tax return, if any. iv. Wait until the Commissioner sends an assessment to pay their taxes.

Q: Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases.…

A: The average tax rate represents the overall tax rate applicable to the taxable income. While the…

Q: As the client support supervisor for FarFar construction, you noticed that some site workers are…

A: The above scenario is called as buddy punching and is a common type of fraud that exists in the…

Q: Use the following information and the flow chart from the module to calculate: Adjusted gross income…

A: Ajusted gross income helps to assess the liability of income tax. It is estimated by subtracting…

Q: determine if it's a tax deductible, tax credit, or neither.

A: TAX DEDUCTION:- It is a provision that reduce the taxable income. An expenses you can Subtracted…

Q: Which of the following journal entries is recorded in a general journal for the payment of the State…

A: The objective of the question is to identify the correct journal entry for the payment of the State…

Q: What is the goal of a tax audit? A. To make sure you paying your imposed fines  B. To make sure…

A: Tax audit means audit of the information provided in tax returns like income and expenditure are…

Q: The EFILE allows an individual to file their own personal income tax return directly to the CRA…

A: The income tax return is a document filed with the tax authority of a country stating the sources of…

Q: Which of the following does NOT apply to both a W−2 and a W−​3?     A. Reports the total amount of​…

A: IRS forms W-2 and W-3 both are submitted by the employer to Social Security Administration and both…

Q: Cash basis taxpayers deduct rental expenses that apply to a future tax year in the year the expenses…

A: Cash basis taxpayer means the tax payer who report expense and revenue on cash basis and not on…

Q: All tax practitioners who prepare tax returns for a fee are subject to which of the following? I.…

A: I. IRS Circular 230 outlines the standards of practice for all tax practitioners who prepare tax…

Q: a. Mr. Sabado signified his intention to be taxed at 8% income tax rate on his income. b. Mr. Sabado…

A: Gross taxable income refers to the total income earned by an individual or entity from various…

Q: the registered taxpayer is required to prepare an own invoice to report the output tax on imported…

A: In the context of Value Added Tax (VAT) or Goods and Services Tax (GST), output tax refers to the…

Q: The number assigned to employers by the IRS for use in submitting and reporting tax payments is: O…

A: The Indian Revenue Service (IRS) is the largest Group A Central Service. It is one of the most…

Q: An individual taxpayer can adopt either the calendar or fiscal year period for purposes of filing…

A: Tax return:- A tax return is referred as the form or forms that is filled with a tax authority and…

Q: One way to select the input screen for interest income reported on Form 1099-INT is for the Tax…

A: The time period Form 1099-INT refers to an Internal Revenue Service (IRS) tax shape this is utilized…

Q: Regarding the lax Tables a. For any one year, the Tax Tables are issued by the IRS after the Tax b.…

A: For any one year, the tax tables are issued by the IRS after the tax schedules. For any one year,…

Q: Which of the following statements is false?

A: Generally, most U.S. citizens and permanent residents who work in the United States need to file a…

Q: Which of the following is NOT an option to file a federal tax return? Fill out the paper version of…

A: When filing a federal tax return, there are several accepted methods:Mailing a paper version of the…

Q: On the 1040 Sch 1 screen, the Tax Professional can enter into a field which of the following types…

A: Income from Other Sources is the 5th head of profits-class beneath neath the Income Tax Act. Income…

Q: Which of the following journal entries is recorded for the payment of employees' state income tax…

A: The objective of the question is to identify the correct journal entry for the payment of employees'…

Q: The AICPA has issued standards for CPAs in tax practice, called Statements on Standards for Tax…

A: A variety of professional conduct have been established by the American Institute of Certified…

Q: When a sale is made and sales tax is collected from the customer, the sales tax is recorded as a/an…

A: Sales tax is collected by the business owner for the government from the customer .

Q: Which of the following is a compliance tool the IRS utilizes to address the tax gap?   Compliance…

A: Tax gap is the amount of tax which is computed by subtracting the tax paid by the tax payer from the…

Q: Required: Use the following information to complete Rhonda Hill's federal income tax return. If any…

A: A federal Income Tax return is a return by individuals and firms for reporting their income to the…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.