1. The ratificationof theSixteenth Amendmentto theU.S. Constitutionwasnecessary tovalidate theFederal incometax oncorporations.
a. True
b. False
2. Beforethe SixteenthAmendmentto theConstitution wasratified, therewas novalid Federalincometax onindividuals.
a. True
b. False
3. Thefirst incometax onindividuals (afterthe ratificationof theSixteenth Amendmentto theConstitution) leviedtaxratesfrom alowof2%toahighof6%.
a. True
b. False
4. The Federalincome taxon individualsgeneratesmore revenuethan theFederalincome taxon corporations.
a. True
b. False
5. The payasyougofeature ofthe Federalincome taxon individualsconforms toAdam Smithscanon ofcertainty.
a. True
b. False
6. Becausethe lawis complicated,most individualtaxpayers arenot ableto completetheir Federalincome taxreturnswithoutoutsideassistance.
a. True
b. False
7. The FICAtax (Medicarecomponent) onwages isprogressive sincethetaxdueincreasesaswagesincrease.
a. True
b. False
8. The Federalexcisetax oncigarettes isan exampleof aproportionaltax.
a. True
b. False
9. TheFederalestate andgift taxesare examplesof progressivetaxes.
a. True
b. False
10.Currently, theFederal incometax islessprogressivethan itever hasbeenin thepast.
a. True
b. False
11.Mona inheritsher motherspersonal residence,whichshe convertsto afurnishedrenthouse.
These changes shouldaffecttheamountofadvalorempropertytaxesleviedontheproperties.
a. True
b. False
12. Afixturewillbesubjecttotheadvaloremtaxonpersonaltyratherthantheadvaloremtaxonrealty.
a. True
b. False
.
13.Even ifpropertytax ratesarenot changed,theamount ofadvaloremtaxes imposedon realtymay notremain thesame.
a. True
b. False
14.Theadvaloremtaxon personalusepersonalty ismore oftenavoided bytaxpayersthan theadvaloremtax onbusinessusepersonalty.
a. True
b. False
15.AFederalexcisetaxisnolongerimposedonadmissiontotheaters.
a. True
b. False
.
16.There isaFederalexcisetaxonhoteloccupancy.
a. True
b. False
17.The Federalgas-guzzler taxapplies onlytoautomobiles manufacturedoverseasand importedintothe U.S.
a. True
b. False
18.Like theFederal counterpart,the amountof thestate excisetaxeson gasolinevaries fromstate tostate.
a. True
b. False
.
19.Notallofthestatesthat imposeageneralsalestaxalsohaveausetax.
a. True
b. False
20.Sales madebymail orderare notexempt fromthe applicationof ageneralsales(oruse)tax.
a. True
b. False
.
21.Statesimposeeitherastateincometaxorageneralsalestax,butnotbothtypesoftaxes.
a. True
b. False
22.Two personswholive inthesame statebutin differentcountiesmay notbesubject tothesame generalsalestaxrate.
a. True
b. False
.
23.Asafeandeasywayforataxpayer toavoidlocalandstatesalestaxesistomakethepurchaseinastatethatleviesnosuchtaxes.
a. True
b. False
24.On transfersby death,the Federalgovernment relieson anestate tax,while statesimposean estatetax, aninheritance tax,both taxes,or neithertax.
a. True
b. False
25.Aninheritancetaxisataxonadecedents righttopasspropertyatdeath.
a. True
b. False
.
26.UnderClintswill, allof hisproperty passesto eitherthe LutheranChurch ortohis wife.No Federalestate taxwillbedueonClints deathin2014.
a. True
b. False
27.One ofthemajorreasonsfortheenactment oftheFederalestatetaxwasto preventlargeamountsofwealthfrombeingaccumulatedwithin thefamilyunit.
a. True
b. False
28.Undertheusualstateinheritancetax,twoheirs,acousinandasonofthedeceased, wouldnotbetaxedatthesamerate.
a. True
b. False
29.Theannualexclusion, currently$14,000,is availableforgift andestate taxpurposes.
a. True
b. False
30.In2014,José,awidower,sellsland(fairmarketvalueof$100,000)tohisdaughter,Linda,for$50,000.Joséhasnot made ataxablegift.
a. True
b. False
).
31.Julius,amarriedtaxpayer,makesgiftstoeachofhissixchildren.Amaximumoftwelveannualexclusions couldbeallowedastothesegifts.
a. True
b. False
32.Oneofthemotivationsformakingagiftistosaveonincometaxes.
a. True
b. False
.
33.Theformula forthe Federalincome taxon corporationsis thesame asthat applicableto individuals.
a. True
b. False
34.Astateincometaxcanbeimposedonnonresidenttaxpayerswhoearnincomewithinthestateonanitinerantbasis.
a. True
b. False
35.For stateincome taxpurposes, amajorityofstatesallowadeduction forFederalincometaxes.
a. True
b. False
.
36.Somestates usetheir stateincome taxreturn asameansofcollectingunpaidsalesandusetaxes.
a. True
b. False
37.No statehas offeredan incometax amnestyprogram morethan once.
a. True
b. False
38.ForFederal incometax purposes,there neverhas beenageneralamnestyperiod.
a. True
b. False
.
39.Under stateamnestyprograms, alldelinquentand unpaidincome taxesareforgiven.
a. True
b. False
.
40.WhenastatedecouplesfromaFederaltaxprovision, itmeansthatthisprovisionwillnotapplyforstateincometaxpurposes.
a. True
b. False