107 MCQs Flashcards
A taxpayer makes a noncash contribution to charity; a qualified appraisal regarding the value of the property is also required if the contribution exceeds what amount?
$10,000
$5,000
$500
$2,500
$5,000
If the taxpayer donates noncash gifts valued at more than $500, additional substantiation must be provided with the taxpayer’s return, including a description of how the property was acquired and the taxpayer’s basis in the property. If the noncash contribution exceeds $5,000, a qualified appraisal is also required.
Authorities
IRC 170(f)(11)(C)
What is a Schedule UTP used for?
To disclose specific information regarding uncertain tax positions
To disclose the tax position does not need an adjustment
To disclose basic information regarding uncertain treated property
To disclose the company is not taking a specific tax position
To disclose specific information regarding uncertain tax positions
UTP stands for “uncertain tax position.” The schedule discloses specific information regarding uncertain tax positions taken on tax returns. Multiple tax positions affecting a single line item must be reported individually on the Schedule UTP.
Which of the following is not required to file a Schedule UTP?
A corporation with assets equal to or exceeding $10 million
A corporation filing Form 1120, 1120-L, or 1120-PC
A corporation with one or more tax positions that must be reported
A corporation that did not issue audited financial statements
A corporation that did not issue audited financial statements
A corporation must file IRS Schedule UTP if it:
filed Form 1120, 1120-L, or 1120-PC,
has assets equal to or exceeding $10 million,
issued audited financial statements, and
has one or more uncertain tax positions that must be reported.
What is the “work product doctrine”?
A rule that allows courts to pull work product for all cases
A judicial doctrine that protects work product from discovery by the other side in litigation
A doctrine that allows discovery of work product
None of the answer choices are correct.
A judicial doctrine that protects work product from discovery by the other side in litigation
Work product doctrine, also known as work product rule, is a doctrine or rule that protects some documents from discovery in tax litigation. The material in question is shielded from attorneys for the other side. Work product in tax matters usually involves a CPA’s or attorney’s analysis of certain facts and application of the law and analysis of how the law applies.
A judicial doctrine that protects work product from discovery by the other side in litigation.
The work product doctrine is a legal principle that generally shields materials prepared by an attorney or their team in anticipation of litigation from being discoverable by the opposing party during the legal proceedings. This protection is aimed at preserving the attorney’s mental impressions, opinions, and strategies, allowing them to prepare their case effectively without undue interference.
A reportable transaction is one with respect to which additional information is required to be included with a federal income tax return because the transaction is of a type, according to an IRS determination, that has:
a potential impact on more than one taxpayer.
the potential for tax avoidance or evasion.
a significant tax impact on future years’ returns.
a significant tax impact in the return year.
the potential for tax avoidance or evasion.
Congress has enacted a series of income tax laws designed to halt the growth of abusive tax avoidance transactions, including the disclosure of reportable transactions. Each taxpayer that has participated in a reportable transaction and that is required to file a tax return must disclose information for each reportable transaction in which the taxpayer participates.
