Question 1. Which is not a source of federal revenue?
Income taxes on Individuals
Income taxes on Corporations
Estate and Gift Taxes
Real Estate Taxes
Question 2. What law allows Congress to "levy taxes on income from whatever source derived"?
Tax Levy Law of 1916
Internal Revenue Code
16th Amendment to the Constitution
Tax and Election Bill of 1913
Question 3. Which of the following represents a fraudulent act under the IRC?
Understatement of income
Claiming fictitious or improper deductions
Allocation of income to related taxpayers in lower income brackets
Reporting income in excess of that reported on Information returns by 3rd parties.
Question 4. Which reference material is classified as a primary "authoritative" source?
Internal Revenue Code
Federal Tax Handbook
Internal Revenue Service
Circular 210
Question 5. Which is NOT a component of the Common Body of Tax Law:
Presidential Veto
Constitutional Authority
Judicial Authority
Administrative Authority
Question 6. What type of deductions is directly deducted from Gross Income?
Above the line deductions
Tax exempt income
Tax Credits
Itemized Deductions
Question 7. Which of the following represents an "above the line" deductions?
Self-employment tax
Personal Property Taxes
IRA contributions
Unreimbursed employee business expenses
Question 8. How much is the 2016 personal exemption?
$4,500
$4,000
$4,050
If over 65 it is $6,500
Question 9. Please identify one of the most commonly used accounting methods?
Accrual Basis
Quick Books
Bookkeeping
Financial Accounting
Question 10. The UNICAP rules tell you what expenditures must be:
Capitalized
Expenses
Written-off
Reimbursed