Question

1. Per the article:  Fraudsters Beware: The Taxman Cometh, Proceeds from an embezzlement are considered income by the IRS.

True or False ?

2. Both spouses are always held liable for taxes and penalties if a joint return is filed and it is proven to be fraudulent.

True or False ?

4. Per article Tax Fraud: The Pitfalls of Representing Clients Before the IRS, Any statement made by the client to his CPA tax return preparer is considered privileged communication.

True or False ?

5. In regard to civil tax fraud which of the following is false?

MULTIPLE CHOICE

		a. Taypayers can make innocent errors and not be held liable for the civil fraud penalty.
		b. The computation of the civil fraud penalty under IRC 6663 is determined by multiplying the 75% penalty rate by the amount of the tax underpayment that the taxpayer cannot prove was due to innocent errors.
		c. The government has the burden of proof to show that any part of an underpayment is due to fraud and that standard is defined as "beyond a reasonable doubt".
		d. The civil fraud penalty is not applied to any portion of the underpayment that the defendant shows in not due to fraud by a preponderance of evidence.

8. Federal tax crimes include willfully evading tax or willfully failing to pay a tax, making false statements on any tax return that is to be filed with the federal government, and/or aiding in the preparation of fraudulent returns.

True or False ?

10. Ad valorem taxes are based on the value of the asset.

True or False ?

12. Failure to file a return is prima facie evidence of criminal intent when it happens two years in a row.

True or False ?

Answer 1

ans 1

True

The proceeds from embezzlement is considered in gross income. If there is failure to declare it, than it is considered as fraud. There can be fine upto $100000 or.and five year imprisonment

ans 2

TRUE

If there is any fraud made by any one spouse the other spouse is also liable for any of the taxes or penalties imposed due to fraud

ans 4

FALSE

Privilaged communication is when the client needs tax adive from CPA

ans 5

c. The government has the burden of proof to show that any part of an underpayment is due to fraud and that standard is defined as "beyond a reasonable doubt".

ans 8 True

ans 10 True