ACC 317 Week 11 Quiz 4

This paper of ACC 317 Week 11 Quiz 4 comprehends:

1. The tax professional can do more than just tax compliance work. He or she can work with the client in consultation over the strategy and tactics of dealing with a Federal tax audit.
a. True
b. False

2. The IRS employs about 90,000 personnel, making it one of the largest Federal agencies.
a. True
b. False

3. Recently, the overall Federal income tax audit rate for the Form 1040 has been about 1%.
a. True
b. False

4. The IRS targets high-income individuals for an audit rate that is much higher than that of the general populace.
a. True
b. False

5. IRS computers use document matching programs for both individuals and business taxpayers to keep the audit rate low.
a. True
b. False

6. The IRSs attorney is known as the Chief Counsel.
a. True
b. False

7. The IRS is organized according to the industry classification of the taxpayer. One of the operating divisions of the IRS deals exclusively with manufacturing and exporting businesses.
a. True
b. False

8. In a letter ruling, the IRS responds to a taxpayer request concerning the tax treatment of a proposed transaction.
a. True
b. False

9. An IRS letter ruling might determine that an employees compensation is unreasonable in amount.
a. True
b. False

10. The taxpayer must pay a significant fee to have a letter ruling issued by the IRS.
a. True
b. False

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Answer:

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