Question

Enter Enter Shift PgDn End Ctrl Dal Ins 1-33 Quelions and Problems d. S35,000 loss e. $25,000 gain 21. Shannon, a single taspayer, has a long-term capital loss of $7,000 on the sale of bonds in 2019 and no other capital gains or losses. Her taxable income without this transaction is $47,000. What is her taxable income considering this capital loss? a. $40,000 b $44,000 c. $47,000 d. $55,000 e Some other amount LO 1.8 22. Access the Internet and go to www.irs.gov and select "Search Forms & Instructions." Enter "4868" into the search box, What is Line 6 of the Form 48687 a. Total payments b. Balance due c. Your name d. Estimate of total tax liability e. Your social security number LO 1.9 23. Access the Internet and go to www.irs.gov and select "News" in the upper right hand corner (on mobile devices, select "Menu" in the upper right hand comer and select "News"). Select "IRS Guidance"(on mobile devices, hit the plus on "more News,"then scroll down until you see "IRS Guidance") and then select "IRS Guid- ance in Plain English."Which of the following is a written statement issued to a taxpayer that interprets and applies tax laws to the taxpayer's specific set of facts? a. Private letter ruling b. Revenue ruling c. Revenue procedure LO 1.9 d. Notice e. Regulation 24. Electronically filed tax returns: a. May not be transmitted from a taxpayer's home computer b. Constitute more than 90 percent of the returns filed with the IRS c. Have error rates similar to paper returns d. Offer larger refunds than paper returns LO 1.10

Answer 1

Answer :-

21)Given,

Capital Loss = $7,000

Taxable income without considering capital loss - $47,000

And there is no Capital Gain. As per tax rule, The capital loss of maximum $3000 deducted from taxable income so

Taxable income considering capital loss = Taxable income without considering capital loss - maximum loss deduction

Taxable income considering capital loss =$ 47000 - $3000

Taxable income considering capital loss = $44000

So Option B is correct answer for this question.

22)Option B is correct Answer as in Line 6 of Form 4868 is Balance due.

In Form 4868,

Line 1 is Your Name

Line 2 is Your social security number

Line 4 is Estimated of total tax liability

Line 5 is Total Payments

23)Option A is correct answer as in IRS guidance it is mentioned that A private letter ruling, is a written statement issued to a taxpayer that interprets and applies tax laws to the taxpayer's specific set of facts.

24)Option D - Offer larger refunds than paper returns is correct Answer

As There is less chance of mistake that the IRS will make when processing your return than Paper returns and they also offers faster returns in electronic filed tax returns than Paper return as IRS not have to sort or re-transcribe your tax return.