REG 1/10/2017 Flashcards
If the amount of a tax case is not more than $25,000, the taxpayer may:
make a small case request.
What are some income items not included in gross income?
welfare, Veterans Administration (VA) disability, workers’ compensation, insurance benefits, damages for injury or illness, child support, gifts, inheritance, life insurance proceeds received because of a person’s death, and some scholarships.
When can a CPA charge contingent fees?
If fixed by courts, other public authorities, or in tax matters if based on the results of judicial proceedings
An agency relationship is formed only if
the principal has capacity.
Upon filing a Chapter 7 bankruptcy proceeding, certain property becomes part of the estate if it is received (or entitled to be received) within 180 DAYS of the filing. This type of property includes gifts
Inheritances, various forms of property settlements (including divorce property divisions but not alimony) and life insurance proceeds
Contributions to a Roth IRA are
not deductible
WHat does the principal owe the agent if there’s no contract?
if the agent completes their side of the agreement, compensation (past services),
reimbursed expenses,
and indemnification from any legal actions (future damages).
What does UCC article 3 cover?
commercial paper
What does UCC article 7 cover?
bills of lading ,warehouse receipts
What does UCC article 8 cover?
investment securities-corp stocks/bonds
How many parties does a note entail?
2 parties
How many parties does a draft entail?
3 parties
To be negotiable under UCC article 3, the instrument must:
be in writing
be signed by the maker (note) or drawer (draft)
contain unconditional promise (note) or order (draft) to pay
be for a fixed amount of money
be payable on demand or at a definite time
be payable to order or to bearer ; with excetion of checks
contain no additional undertaking or instruction not authorized by the UCC
