Final Exam > Results Page
final exam score:
final exam status:
100%
Question 1
Correct
Which is a "reportable transaction"?
A transaction that the IRS has ruled is not part of a tax shelter.
A taxable transaction that involves more than $5 million in tax liability.
(You Answered) (Correct Answer) One that the IRS has determined requires disclosure because of its potential for tax evasion.
One that has been specifically identified by the IRS as an improper tax avoidance transaction.
Question 2
Correct
The maximum penalty for a corporation that fails to disclose a listed transaction is:
$50,000 for each failure to disclose.
$5,000
$50,000
(You Answered) (Correct Answer) $200,000
Question 3
Correct
Small filers who fail to file information returns face a maximum penalty of:
$5,000 for each failure to file.
$75,000
$200,000
(You Answered) (Correct Answer) $500,000
Question 4
Correct
The maximum penalty on an electronic payment of $2,500 that is not honored is:
No such penalty exists for 2012.
$25
(You Answered) (Correct Answer) 2 percent of the payment
$1,250
Question 5
Correct
Under the Patient Protection and Affordable Care Act, what is included in minimum essential coverage for individuals?
Medical, dental, and vision coverage for all family members.
Medical coverage under an auto policy
(You Answered) (Correct Answer) Medicare
Disability policy
Question 6
Correct
The assessable payment under the Patient Protection and Affordable Care Act is:
Deductible only if the employer employs if more than 200 seasonal workers.
Deductible only if the employer employs more than 100 full-time workers.
Assessed only for tax years beginning in 2015.
(You Answered) (Correct Answer) Paid by a large employer when it is assessed by the IRS.
Question 7
Correct
A transaction has economic substance if:
(You Answered) (Correct Answer) The transaction changes the taxpayer’s economic position in a meaningful way, aside from taxes.
The IRS issues a tax ruling that the transaction has economic substance.
The transaction results in a deductible business expense.
The transaction involves depreciable or amortizable property.
Question 8
Correct
Under the HIRE Act, the penalty on individuals holding interests in specified foreign financial assets has been:
Repealed for tax years beginning after 2012.
Increased to $5,000 per violation.
Reduced to $100
(You Answered) (Correct Answer) Created
Question 9
Correct
The penalty for failing to file a partnership or S Corporation return is ___ times the number of owners.
$89
(You Answered) (Correct Answer) $195
$500 for each failure to file.
$100 per month.
Question 10
Correct
An individual who is eligible for Medicaid can leave an employer’s healthcare coverage, and:
(You Answered) (Correct Answer) Enroll in Medicaid, and the employer is not required to pay a penalty under the PPACA for the employee.
Pay an individual penalty for leaving the employer’s health plan.
The employer must increase healthcare coverage for all other employees.
The employer will be subject to a $1,000 penalty.
Question 11
Correct
A large employer under the PPACA is:
(You Answered) (Correct Answer) One who employs more than fifty full-time employees for 120 or fewer days in the calendar year.
One who employs fewer than ten employees as seasonal workers.
An employer with gross receipts of more than $5 million.
An employer doing business only as a C coporation.
Question 12
Correct
Under the Small Business Jobs Act:
(You Answered) (Correct Answer) There is a smaller penalty for individuals than for corporations for failure to disclose a reportable transaction in a tax shelter.
There is no penalty for participating in a tax shelter.
The penalty for failure to disclose a reportable transaction is $4,000 per transaction in each calendar year.
Listed transactions are those that are not identified by the IRS as reportable transactions that are improper tax avoidance transactions.