Question

Which of the following is a true statement?

1. An employee can set his or her own hours.

2. An employee provides services to many employees.

3. An employee gets a W-4 at the end of the year.

4. An independent contractor gets a 1099-MISC at the end of the year.

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A tax that is based on a person’s eye color does not meet the standard that a good tax should be:

1. sufficient.

2. convenient.

3. efficient.

4. fair.

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The Internal Revenue Code is an example of:

1. judicial authority.

2. statutory authority.

3. administrative authority.

4. All of the above

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An inter vivos transfer is:

1. the transfer of money between bank accounts.

2. when property is transferred after the death of the transferor.

3. when property is transferred as a gift while the transferor is still alive.

4. when property is transferred as a gift while the transferee is still alive.

Answer 1

(A) An independent contractor gets a 1099-MISC at the end of the year is true. As 1099 is a special tax form which shows who paid you and how much.

(C) The Internal Revenue code is an example of Statutory Authority. The reason being the law passed by the congress that specifies how and what income may be deducted from taxable incime in US.

(D) An inter vivos transfer is when property is transfered as a gift while the transferor is still alive. The gift given by one person to another when both are alive. when the gift inter vivos is completed , passes the title so that it cannot be recovered by the giver.