One of the following statements is correct. A choice of by an individual of the Optional Standard Deduction means that:     His/Her income tax return need not be accompanied by financial statements.     S/he need not need keep books of accounts     S/he need not have records of gross income      His/Her choice can still be changed by filing an amended return.

Q: TRUE OR FALSE? 1st statement: Interest income must be included in the computation of gross income if…

A: Gross Income: The entire earnings a person obtains before taxes and other deductions are referred to…

Q: What events create permanent differences between accounting income and taxable income? What effect…

A: Introduction: Accounting income is profit calculated using the accrual method of accounting.…

Q: A taxpayer received Form 1099-A with box 5 checked, indicating recourse debt. This informs the tax…

A: Form 1099-A includes the particulars relating to transfer of a property that is already disclosed.

Q: PLEASE ANSWER ALL QUESTIONS IN BOTH 1 AND 2 PLEASE. 1. Some accountants believe that deferred taxes…

A: Temporary differences are defined as differences between the carrying amount of assets and…

Q: Which of the following is correct

A: All capital gains are not capital assets. Taxpayers not remits tax to government. Exempt from income…

Q: at income be recognized when it is made available to the cash basis taxpayer even though there are…

A: The correct answer is  True    Explanation:  ruling is applicable only to the taxpayer who would…

Q: An item that is considered a nondeductible item in taxable income is recognizing estimated bad debts…

A: Non deductible item in taxable income is an item which will not be considered for deduction while…

Q: True or false: After calculating your income taxes, you may find yourself owing to the IRS instead…

A: A tax is a governmental organization's mandatory financial obligation or another form of levy…

Q: Provide two examples of expenditures that are typically not allowable for tax deductions but are…

A: Introduction: A tax-deductible cost is one that is "ordinary, essential, and reasonable" and…

Q: Catriona, a taxpayer, gives the following reasons for refusing to pay a tax. Which of her reasons is…

A: The tax liability of an individual is the amount ascertained to be payable by the individual himself…

Q: Why would a taxpayer file a tax return if not required to do so?

A: A person is required to file the income tax return as per their respective country’s taxation law.…

Q: Which of the following statements is NOT correct?

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: The following reasons may be given by a taxpayer in refusing to pay his tax liability. Which is not…

A: Tax liability refers to the amount of tax to be paid to the government or tax authority on the…

Q: Is the IRS appearing to be socially responsible when it excludes from gross income, living expenses,…

A: Given: The IRS appearing to be socially responsible that gets excluded from the gross income, living…

Q: Which of the following is TRUE? When the tax law is vague or ambiguous, it is to be interpreted…

A: When the tax law is vague or ambiguous, If there are 2 reasonable interpretations of taxing statues,…

Q: Which of the following is correct?    a. A person with vatable sales or receipts not exceeding the…

A: Value-added tax: The value-added tax refers to an indirect tax or sales tax that lived on the…

Q: True (t) or False (f) ______ The IRS does not require the taxpayer to use the same depreciation…

A: Due to various reasons such as normal wear & tear, obsolescence, change in technology, etc., the…

Q: While earnings on assets held in a Tax Free Savings Account (TFSA) will not be taxed while the…

A: False

Q: Explain further the steps in determining the income tax. Use the space provided for your answer.…

A: Tax is a charge which is levied on the taxable income of a taxpayer. A taxpayer has to pay the tax…

Q: In what circumstance is it permissible for a CPA to prepare an original tax return for a client on a…

A: According to the AICPA code of professional ethics, A CPA can accept the contingent fees but only in…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: As You Read QUESTION What could happen if your employer did not deduct federal income taxes from…

A: Introduction:- A paycheck, also known as a paycheck is a paper document issued by an employer as…

Q: What is the statute of limitations for income tax returns?

A: Given: The concept of a statute of limitations for the income tax returns.

Q: Which one of the following deductions is available under S25-5 ITAA97 (Tax related expenses) Choose…

A: According to Income Tax Assessment Act 1997 - SECT 25.5 following tax related expenses deductions is…

Q: Which of the following statements is false? Group of answer choices A.Prepaid expenses are fully…

A: Prepaid expenses are expenses which are paid in advance but accrued in the business after an…

Q: In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In…

A: Introduction: RRSP (Registered Retirement Savings Plan): A (RRSP) is a retirement funds plan where…

Q: If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized…

A: Claim of deduction in form of Capitalized and Depreciation If an entity opt for the deduction of…

Q: Which of the following is not a source of support for the occurrence of a deferred tax liability?…

A: Solution: Future deductible temporary differences is not a source of support for the occurrence of a…

Q: Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net…

A: The estate tax is computed after deducting the exemption value from the total value of the…

Q: For each of the following situations, indicate the amount of the penalty that could be imposed on…

A: The penalty imposed on the given situations can be explained as follows. 1. f a tax return preparer…

Q: Which of the following statements is true? Deductions are amounts allowed by the NIRC to be deducted…

A: Losses from wagering transactions shall be allowed only up to the extent of the gains from such…

Q: Some accountants believe that deferred taxes should not be recognized for certain temporary…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Failure to furnish a completed copy of a prepared tax return no later than the time such return is…

A: Every Tax return filer has to submit a copy of the tax return after certification with signature to…

Q: What is an uncertain tax position, and what are the ­general guidelines for accounting for uncertain…

A:

Q: remedy in recovering the overwithholding? a. Claim the overwithholding as tax credit for the year b.…

A: Tax is a liability for the company calculated on the income earned by the company and paid to the…

Q: The IRS does not have the authority to: a.Summon taxpayers to make them appear before the IRS.…

A: The IRS or Internal Revenue Service’s is the tax collection agency of the nation that administers…

Q: What is the statute of limitations for income tax returns

A: Given: The concept of a statute of limitations for the income tax returns.

Q: When accounting standards require recognition of an expense that is not permitted undertax laws, the…

A: Temporary differences incur when there is a difference between the tax base and the carrying amount…

Q: A taxpayer gives the following reasons in refusing to pay a tax. Which of these reasons is not…

A: An Individual who is eligible to pay taxes on his) her income towards the government, as being the…

Q: The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain.

A: Tax: A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization to…

Q: Which of the following statements is false?

A: Out of the given statements,  A realized gain that is never recognized results in the temporary…

Q: In general, accrual basis taxpayers cannot take deductions for tax purposes until economic…

A: Accrual basis of accounting requires an individual or other entity to record the revenues and…

Q: ‘Income tax shall be paid on taxable income times tax rate.  It makes sense to pay income tax for…

A: The tax is charged on the taxable income as per the principles of the regulation authorities and any…

Q: Taxpayers are having a difficult time due to the large number of tax rules in place. To put it…

A: Introduction:   Substance over form: It is an accounting concept, which says that the company must…

Q: What is the implication of a tax invoice not being received for the light fittings

A: Goods and services tax is referred as the tax on the products and services, which is sold for the…

Q: What are the powers of the Commissioner-General, if a taxpayer fails to file tax return on time?

A: Solution- Commissioner Of Income Tax :- He is an important income tax authority which has executive…

Q: A taxpayer’s tax-exempt status justifies the non-keeping of books of accounts and other accounting…

A: Tax-exempt can be defined as the income free from taxation at the local, state, and federal levels.…

Q: Tax preparers may be assessed a penalty for failing to give the taxpayer the preparer's workpapers.

A:

Q: Explain when a full tax invoice and an abridged tax invoice is requir

A: A tax invoice is a statement issued for the delivery of taxable goods and services. A tax invoice…

Q: The following needs to explain further the steps in determining the income tax. Jse the space…

A: SOLUTION-    TAX IS A COMPULSORY FINANCIAL CHARGE OR SOME OTHER TYPE OF LEVY IMPOSED ON A TAX PAYER…

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.