This course, developed by noted tax authorities Sidney Kess and Barbara Weltman, provides you with an overview of recent tax developments and highlights planning tips and techniques to help you in your practice. The practice management tip focuses on COLAS for 2014.
final exam score:
final exam status:
90%Question 1
Correct
How much can someone below the full (normal) retirement age in 2014 earn in wages and/or self-employment before Social Security benefits are reduced?\r
$104.90
(You Answered) (Correct Answer) $1,290
$3,450
Unlimited
Question 2
Correct
What is the maximum elective deferral for a medical FSA in 2014?
$500
(You Answered) (Correct Answer) $2,500
$5,000
Whatever the employer sets
Question 3
Incorrect
With respect to offers in compromise, the Tax Court has authority to:
(Correct Answer) Review rejections
Examine the re-opening of an offer in compromise
Both a. and b.
(You Answered) Neither a. nor b.
Question 4
Correct
If a baseball club pays a signing bonus, what is the period over which it must be amortized?
Any reasonable period set by the taxpayer
(You Answered) (Correct Answer) The length of the contract
The length that the ballplayer typically stays with the team, which is shorter than the length of the contract
15 years
Question 5
Correct
Which statement about the Fast Track Settlement (FTS) program is correct?
Audit issues usually can be resolved within 60 days.
Either the taxpayer or IRS can initiate FTS.
The taxpayer does not lose any rights by using FTS.
(You Answered) (Correct Answer) All of the above
Question 6
Correct
The IRS usually retains original returns for up to:
75 days
3 years
(You Answered) (Correct Answer) 7 years
10 years
Question 7
Correct
The IRS interest rate for the first quarter of 2014 that applies to overpayments by noncorporate taxpayers is:
0.5%
2%
(You Answered) (Correct Answer) 3%
5%
Question 8
Correct
Which of the following tax items has not been increased by inflation for 2014?
Standard deduction amounts
Personal exemption
(You Answered) (Correct Answer) Elective deferrals to FSAs
Adoption credit
Question 9
Correct
What is the maximum lifetime exemption amount for gifts in 2014?
$14,000
$134,000
$5.25 million
(You Answered) (Correct Answer) $5.34 million
Question 10
Correct
What is the maximum deductible SEP contribution for 2014?
$17,500
$51,000
(You Answered) (Correct Answer) $52,000
$210,000