Ethics, Professional responsibilities, and Federal Tax Procedures

Question 1

One of the accuracy-related penalties for taxpayers is for negligence or disregard of rules and regulations. The penalty is a percentage of the underpayment. What is that percentage?

Answer 1

20%

Question 2

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:

Answer 2

the potential for tax avoidance or evasion.

Question 3

Which of the following is not considered a primary authoritative source when conducting tax research?

Answer 3

IRS publications

Question 4

What is the maximum prison sentence for willful attempt to evade or defeat tax?

Answer 4

5 years and $100k fine for an individual
no imprisonment and $500k fine for a corporation

Question 5

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?

Answer 5

$5,000