Flashcards in Deck 21 Deck (20):
Primary authoritative sources does not include:
Identified by the Secretary of the U.S. Treasury Department; tax avoidance transaction
More likely than not
>33% but less than 50%
Tax return preparer
Any person wo prepares for compensation or employs a person to prepare for compensation or any claim for refund
Individuals who practice before the IRS: attorneys, CPAs, enrolled agents
Plan or arrangement with a significant purpose to have tax avoidance or tax evasion
Tax preparer is required to keep records for how long?
General rules that apply to tax practitioners
What group can seek criminal penalties?
Internal Revenue Service (IRS)
The penalty for failure to file a tax return by the due date is:
5% per month or fraction of month on the amount of tax shown as due on the return
The penalty for failure to pay by the due date is:
1/2% per month based on the amount due on the return
In civil tax cases, who bears the burden of the proof?
Which senate considers new tax legislation?
What does it mean to issue a "no change" report?
The IRS generally does not reopen the examination except in cases involving fraud or other similar misrepresentation
Where does tax law originate?
House of Representatives
What groups of taxpayers are more subject to audit under the Discriminant Inventory Function System (DIF)?
Individuals with gross income greater than $100,000; self-employed individuals; and cash businesses
Who's can settle an unresolved issue based on the probability of winning the case in court?
Appeals division; not a revenue agent