New Flashcards
Which type of business organization combines the tax treatment of a partnership with the legal accountability of a corporation?
LLC
Which of the following entities is not considered a flow-through entity?
C Corps
Which example demonstrates a disadvantage of being a C corporation?
A) The first $50,000 of income of a C corporation is taxed at 15%
B) Shareholders employed by the corporation are considered employees
C) The C corporation’s earning is taxed to the shareholders when they are distributed as dividends.
D) Shareholder-employees must fund fringe benefits such as life insurance and health plans funded with before tax dollars.
Shareholder-employees must fund fringe benefits such as life insurance and health plans funded with before tax dollars.
Which Court can you get a jury trial?
US District Court
What is not a current tax statute of limitation?
A) General statute of limitation is three years from date tax return filed or date due
B) Six-year statute for limitation economic substance
C) Six-year statute for omitted gross income that exceed 25 percent of gross income reported
D) No Statute of limitation on fraudulent returns
What is tax filing due date for C Corporation whose tax year ends on May 31st? A) Three months 15 day B) Four months 15 day C) Five months 15 day D) Two months 15 days
Four months 15 day
What is tax filing due date for S Corporation whose tax year ends on June 30th? A) Three months 15 day B) Four months 15 day C) Five months 15 day D) Two months 15 days
Three months 15 day
For partnership tax years ending after December 31, 2018, when must a partnership file its return?
A) By the 15th day of the 3rd month after the partnership’s tax year end.
B) By the 5th month after the original due date if an extension is filed.
C) By the 15th day of the 4th month after the partnership’s tax year end.
D) By the 15th day of the 3rd month after the partnership’s tax year end and by the 5th month after the original due date if an extension is filed.
By the 15th day of the 3rd month after the partnership’s tax year end.
A tax preparer is asked for advice from a client, client is working out of the country and wants to know if they must pay full income tax on the income earned outside the US. Prior court case decisions ruled that the client would need to pay tax on all the income, a new tax treaty that has been made by the President and approved by the Senate changes the tax law, under the new law client would pay reduced taxes in the US. How should the tax preparer advise her client?
Follow the new tax treaty and pay reduce taxes
What is the penalty for not paying taxes when due?
.5% per month up to 25%
Which strategies (pick 2) should decrease a corporation’s tax liability for the current tax year?
A) Contributing to a qualified charity in month three of the following tax year
B) Delaying purchases that would be classified as expenses for tax purposes
C) Accruing an obligation to pay compensation in the second month of the following tax year
D) Accelerating earning taxable revenue that would have been earned in the subsequent tax year
