Ethics & Professional Responsibilities.

Question 1

Regarding the standards for substantiation of tax positions, what is the appropriate percentages for Reasonable Basis and Substantial Authority, respectively?

Answer 1

20% and 40%

Question 2

How is the late filing penalty calculated?

Answer 2

5% of the amount of taxes owed then multiplied by the number of months late. The penalty is capped at 25% of the total amount owed.

Question 3

What is the penalty for late payment of taxes?

Answer 3

.5% of total taxes owned, then multiplied by the total number of months.

Question 4

What are source of Primary authority?

Answer 4

Legislative
Administrative
Judicial

Question 5

What are the three courts of the supreme court?

Answer 5

Tax Court
District Court
Claims Court

Question 6

What are the required annual amounts to avoid the penalty for the underpayment of estimated tax?

Answer 6

the lower of 90% of the tax shown on the CY return or 100% of the tax shown on PY. If AGI is greater that $150,000, then 110% of the PY is used.