Question

QUESTION 1
The effective tax rate, in general, provides a better representation of the tax burden of the taxpayer than the average tax rate.
  True
  False

QUESTION 2
Office inspections are the most common type of IRS audit.
  True
  False

QUESTION 3
The doctrine of constructive receipt is more a matter for cash contributors
  True
  False

QUESTION 4
In accordance with the Declaration on Standards for Tax Services No. 1, a tax professional can recommend a tax refund position:

a-If the position is frivolous and revealed in the tax return.

b-If the position complies with the rules imposed by the applicable tax authority.

c-Only if the position meets the "most likely not" standard.

d-Only if the position complies with the "clear and convincing evidence" standard.

e-None of those.

  
QUESTION 5
Common examples of taxes for consumption, include taxes imposed on airline tickets and gasoline.
  True
  False

Answer 1

1. True:

Explanation:

Effective tax rate is calculated by dividing toral tax paid/ total income of the assessee, whereas average rate is calaulated by dividing tax paid by total income. Since effective tax rate takes into account total income , it will better represent the tax burden

2. False

Explanation:

Correspondence audit is the most common IRS audit. In office audit is person is required to visit IRS office to meet the concerned auditor and done only when required