For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
A.
B. Negligence in filing a return.
C. Filing an improper refund claim.
D. Failure to pay a tax that is due.
E. Undervaluation of a reported item.
F. Failure to deposit withholding tax.
G. Preparer penalty for taking an unreasonable tax return position.
H.
I. Substantial understatement of tax liability.
J. Preparer penalty for reckless conduct.
A. Ignorance of the tax law
B. Reasonable basis
C. Reasonable basis
D. Reasonable cause
E. Reasonable cause
F. Reasonable cause
G. Reasonable cause
H. Complexity of the tax law
I. Substantial authority
J. Disclosure on return
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Courtney’s boss accuses her of something she did not do. The boss yells and uses profanity and Courtney yells in response. When she goes back to her office, her co- worker Carrie is quietly working. Courtney quietly goes back to work. Which message design logic is Courtney’s?
A. expressive B. conventional C. rhetorical D. persuasive
Wilshire purchased equipment at the beginning of 2011 for $19,000. Wilshire decided to depreciate the equipment over a 6-year period using the straight-line method. Wilshire estimated the equipment's salvage value at $1,000. The estimated fair market value at the end of 2011 was $18,000. Which of the following statements is correct concerning Wilshire's financial statements at December 31, 2011?
A) The book value of the equipment is $15,000. B) The book value of the equipment is $16,000. C) The total accumulated depreciation is $3,167. D) The equipment will be reported on the balance sheet at it fair market value of $18,000.
Total the following numbers: 712; 1,105; 3,209; 796.
A. 5,110 B. 5,822 C. 5,026 D. 4,417
Lu runs a company that manufactures satellites for commercial and government use. It has few rivals. At the moment, the power of buyers, the power of suppliers, and the threat of substitutes are all low. Based on this information, what can Lu conclude?
A. The manufacturer is likely to see little profit until the power of buyers improves. B. The company is likely to be very profitable as long as the threat to entry is low. C. This firm is an example of near-perfect competition. D. In this scenario, suppliers are likely to create and sell effective substitutes.