Chapter 1, Problem 23DQ

What is not considered a tax base used by government agencies to collect tax?  Federal income taxes include a variety of different tax bases. What tax base is not a federal tax?  Like federal income taxes, state and local taxes include a variety of different tax bases. What tax base is neither a state nor local tax?

An official IRS statement issued by the National Office that provides an interpreation of how the tax law applies to a hypothetical fact scenario is:  A. Revenue Ruling B. Field Service Advice C. Private Letter Ruling  D. Technical Advice Memorandum

What is the most common example of tax earmarking at the state level?

Which of the following is a compliance tool the IRS utilizes to address the tax gap?   Compliance checks.   Correspondence examinations.   Discovery services.   Processing and investigating unsolicited amended returns.

Select all the true statements from the following pool of statements: A - Tax, being one of the indispensable inherent powers, is the government's primary source of revenue. B - Generally, government revenues arising from exchange transactions are measured at face amount of the cash consideration received. C- For revenues that are long-term and deferred in nature, the revenue is measured at present value. D- Taxes are enforced payments by any taxable subjects, in support of government for its fiscal purpose. Taxes, being comprehensive in nature, may include fines, fees and penalties. E- Generally, payments made to the government in the form of checks are not allowed.

Statements of procedures that affect the rights and obligations of taxpayers or the public in general with respect to the application of the tax laws or tax information which should be a matter of public knowledge are released as:  a. Revenue Rulings b. Technical Advice Memoranda c. Private Letter Rulings d. None of the above

Discuss problems regarding tax evasion in a country? What should be the solution that can be done by the government?

Which one of the following statements is NOT correct about taxation? (A) Taxes produce revenue for government operations. (B) Itemized deductions provide a larger deduction amount than the standard deduction. (C) Taxation is used to influence the behavior of individuals, businesses, nonprofit entities, and even the government. (D) Tax rates and deductions are impacted by a taxpayer’s filing status.

Which statement regarding the current Form W-4 is accurate?     Answer:   A. It uses fewer pieces of information than the previous version to determine federal income tax.     B. It can be used with either the wage-bracket or the percentage method of determining federal income tax.     C. When determining federal income tax using the wage-bracket method, you can refer to the same tax tables associated with the previous version.     D. Unlike the previous version, it calculates the number of withholding allowances.