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1. In tax year 2019 taxpayer had taxable income of $100,000 and paid tax of $18,080. In 2020 taxpayer, who is single, had taxable income of $150,000 and paid tax of $30,021. What is taxpayers Marginal Tax Rate for 2020? Round your response to two decimal places

   		25.00%
   		24.00%
   		23.88%
   		Cannot be calculated with the given data

4 points

QUESTION 2

1. Under the check the box regulations, a Limited Liability Company (LLC) is allowed to elect to be taxed as a trust.

   True

   False

4 points

QUESTION 3

1. Which of the following is a secondary source of tax law?

   		IRS Frequently Asked Question Document
   		A Revenue Ruling
   		The Internal Revenue Code
   		A Revenue Procedure

4 points

QUESTION 4

1. In which of the following circumstances would a 6 year statute of limitations apply?

   		Taxpayer filed a return with an item of missing income. The omitted item was 10% of the gross income reported on the return. There was intention to commit fraud.
   		Taxpayer filed a return with an item of missing income. The omitted item was 10% of the gross income reported on the return. There was no intention to commit fraud.
   		Taxpayer filed a return with an item of missing income. The omitted item was 30% of the gross income reported on the return. There was no intention to commit fraud.
   		Taxpayer filed a return with an item of missing income. The omitted item was 30% of the gross income reported on the return. There was intention to commit fraud.

4 points

QUESTION 5

1. Which of the following is not a limitation on deductions per Sec. 162?

   		Amounts cannot be unreasonable
   		Deduction must be paid in cash before recognition
   		Deductions must be necessary for the business
   		Items must be ordinary

4 points

QUESTION 6

1. Which of the following is a nondeductible expense in tax year 2021?

   		Investment management fees
   		Meals
   		Travel
   		Mileage

4 points

QUESTION 7

1. Which of the following is a requirement for something to be considered a tax?

   		Payment must be made in cash
   		Payment is required
   		Payment is due on the 15th of the third month after year end
   		Payment is based on the value of property

4 points

QUESTION 8

1. Which of the following is an example of a graduated tax?

   		Federal payroll tax
   		Texas Franchise tax
   		Sales tax
   		Marginal tax

4 points

QUESTION 9

1. Which of the following courts has the lowest authoritative weight?

   		Appellate Court for a district the taxpayer does not live
   		Tax Court
   		Appellate Court for the district in which the taxpayer lives
   		Supreme Court

4 points

QUESTION 10

1. What is the initial filing deadline for a calendar year C Corporation?

   		June 15
   		April 15
   		March 15
   		May 15

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