Taxation Tb

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Taxation

1. The ratification of the Sixteenth Amendment to the U.S. Constitution was necessary to validate the Federal income tax on individuals.

*a. True
b. False

2. Before the Sixteenth Amendment to the Constitution was ratified, there was no valid Federal income tax on individuals.

a. True
*b. False

3. The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution) levied tax rates from a low of 2% to a high of 6%.

*a. True
b. False

4. The Federal income tax on corporations generates more revenue than the Federal income tax on individuals.

a. True
*b. False

5. The pay-as-you-go feature of the Federal income tax on individuals conforms to
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*a. True
b. False

30. In 2011, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has made a taxable gift of $37,000.

*a. True
b. False

31. Julius, a married taxpayer, makes gifts to each of his six children. A maximum of six annual exclusions could be allowed as to these gifts.

a. True
*b. False

32. One of the motivations for making a gift is to save on income taxes.

*a. True
b. False

33. The formula for the Federal income tax on corporations is not the same as that applicable to individuals.

*a. True
b. False

34. A state income tax can be imposed on nonresident taxpayers who earn income within the state or on an itinerant basis.

*a. True
b. False

35. For state income tax purposes, all states allow a deduction for Federal income taxes.

a. True
*b. False

36. Some states use their state income tax return as a means of collecting unpaid sales and use taxes.

*a. True
b. False

37. No state has offered an income tax amnesty program more than once.

a. True
*b. False

38. For Federal income tax purposes, there never has been a general amnesty period.

*a. True
b. False

39. Under state amnesty programs, all delinquent and unpaid income taxes are forgiven.

a. True
*b. False

40. When a state decouples from a Federal tax

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