Self-assessment exam.

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Countdown to tax season 2009

1. Until recently, what type of penalty was levied on taxpayers who failed to file an S corporation return?

   1. 10% of the tax due

   2. A flat $100 per return

   3. There was no penalty

   4. A 15% penalty up to $250

2. Under the Mortgage Relief Act of 2007, the penalty imposed on a taxpayer for failure to file an S corporation return will now equal:

   1. $85 times the number of S-corporation shareholders times the number of months the failure continues (to a maximum of 12 months)

   2. $85 times the number of S-corporation shareholders times the number of months the failure continues (to a maximum of 24 months)

   3. The Mortgage Relief Act eliminates the penalty for failure to file an S corporation return

   4. $90 times the number of S-corporation shareholders

3. For purposes of passive activity losses, under what circumstances will the IRS view a trust as materially participating in an activity?

   1. In instances where a public accounting firm openly audits that trusts' beneficiary(ies)

   2. When all of the trust's beneficiaries are U.S. citizens

   3. When the trust's employees materially participate in the trust's activities

   4. In instances where the trust's fiduciaries participate in the passive activity on a regular, continual and substantial basis

4. How long does the bank have complete control of the assets contained in an RMA (restricted management account)?

   1. 2 years

   2. 4 years

   3. 5 years

   4. 6 years

5. Any compensation arrangement subject to Code Section 409A had to be amended by Dec. 31, 2008 to conform to final regulations. As part of this process, all material terms of the deferred compensation agreement must be in writing. These material terms include all of the following except:

   1. The amount of the deferred compensation or the objectively determinable formula for calculating the amount

   2. The time when the deferral elections become revocable

   3. The payment events

   4. The 6-month delay applicable (for public companies) to distributions made upon separation from service to "specified employees"

6. In La Rue v. DeWolff, Boberg and Associates, the U.S. Supreme Court held that:

   1. Tax liens could not be enforced beyond the statute of limitations

   2. A plan sponsor can sue a 401(k) plan participant for non-payment of plan contributions

   3. A plan participant in a 401(k) plan can sue his employer-sponsored plan for plan losses

   4. A retirement plan's assets can be used to pay bills not absolved by bankruptcy

   2018: A world of global accounting and virtual business

7. Based on the article, XBRL (extensible business reporting language) will allow individual investors to:

   1. ...