1. Ethics, Professional Responsibilities and Federal Tax Procedures Flashcards
1
Q
An individual can avoid an underpayment penalty for the current year if:
A
Estimated payments and withholdings in total are at least equal to 100% of prior-year tax liability (110% if prior year AGI is > $150,000) or
90% of the current year tax liability, whichever is less.
2
Q
Tax Payer Underpayment Penalty
A
Generally, all taxes must be assessed within three years after the later of the due date or the filing date
3
Q
Tax Shelter Effect on tax Penalty
A
Preparer will NOT be subject to penalty if the transaction’s chances meet the more likely than not requirement (50%).
4
Q
US Tax Court
A
Payment need not be made before going to trial. Payment must be made for all the other courts before going to trial.
