Solved by verified expert :1947. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #1
The tax professional can do more than just tax compliance work. He or she can
work with the client in consultation over the strategy and tactics of dealing
with a Federal tax audit.
a.
True
b. False
1948. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #2
The IRS employs almost 90,000 personnel, making it one of the largest Federal
agencies.
a.
True
b. False
1949. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #3
Recently, the overall Federal income tax audit rate for individual returns has
been about 3%.
a.
True
b. False
1950. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #4
The IRS targets high-income individuals for an audit rate that is about double
that of the general populace.
a.
True
b. False
1951. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #5
IRS computers use document matching programs for both individuals and business
taxpayers to keep the audit rate low.
a.
True
b. False
1952. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #6
The “IRS’ attorney” is known as the Chief Counsel.
a.
True
b. False
1953. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #7
One of the four operating divisions of the IRS deals exclusively with
manufacturing and exporting businesses.
a.
True
b. False
1954. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #8
In a letter ruling, the IRS responds to a taxpayer request concerning the tax
treatment of a proposed transaction.
a.
True
b. False
1955. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #9
An IRS letter ruling might determine that an employee’s compensation is
unreasonable in amount.
a.
True
b. False
1956. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #10
A letter ruling is issued by the IRS at no charge.
a.
True
b. False
1957. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #11
The IRS can require that the taxpayer produce its financial accounting records,
to determine if taxable income is computed correctly.
a.
True
b. False
1958. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #12
When a tax issue is taken to court, the burden of proof is on the taxpayer to
show that the items reported on the return are correct.
a.
True
b. False
1959. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #13
When the IRS issues a notice of tax due, the taxpayer has 30 days to either pay
the tax or file a petition with the Tax Court. This is conveyed in the
“thirty-day letter.”
a.
True
b. False
1960. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #14
An “office audit” takes place at the headquarters office of the corporate
taxpayer.
a.
True
b. False
1961. CHAPTER
17—TAX PRACTICE AND ETHICS Question TF #15
After a tax audit, the taxpayer receives the Revenue Agent’s Report as part of
the “90-day letter.”
a.
True
b. False
