1. A taxpayer instructing her dividend checks to be mailed to her daughter and to use the daughter's social security number to report the dividend income as income on the daughter's tax return violates which doctrine?
A Tax benefit rule.
B. Constructive receipt doctrine.
C. Assignment of income doctrine.
D. Shifting doctrine.
E. None of the choices are correct
2. Jim was issued a $500 fee to repair the sidewalk in front of his home. This is:
A Not a tax because it is considered a fine for wear and
tear.
B. Not a tax because the taxpayer is receiving a specific benefit
from the agency collecting the fee.
C. Not a tax because it is an optional payment.
D. Not a tax because payment is required by town.
E. A tax because it is imposed by a government agency.
1. Assignment of Income doctrine - This doctrine was established to limit tax evasions. The taxpayer cannot transfer his income to another person (like family member) to avoid tax.
2. Not a tax because the taxpayer is receiving a specific benefit from the agency collecting the fee
1. A taxpayer instructing her dividend checks to be mailed to her daughter and to use...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...