Multiple Choice Questions 1 Ethics, Professional Responsibilities, and Federal Tax Procedures 3 Ethics and Responsibilities in Tax Practice 3 Regulations Governing Practice Before the Internal Revenue Service 3 Internal Revenue Code and Regulations Related to Tax Return Preparers 4 Licensing and Disciplinary Systems 5 Federal Tax Practice and Procedures 6 Substantiation and Disclosure of Tax Positions 6 Taxpayer Penalties 6 Sources of Tax Authority and Research 7 Tax Practice and Procedure 8 Compliance Responsibilities 8 Legal Duties and Responsibilities 9 Common Law Duties and Liabilities to Clients and Third Parties 9 Privileged Communications, Confidentiality, and Privacy Acts 11 Agency 13 Types of Agency Relationships and Creation 13 Duties of Agents and Principals 13 Contract Liability of Agents and Principals 14 Tort Liability of Agents and Principals 15 Business Law 16 Contracts 16 Introduction and Classification 16 Applicable Laws 16 Types of Contracts 16 Formation 17 Offer and Acceptance 17 Consideration 17 Writing and Records: The Statute of Frauds 18 Defenses to Formation 18 Performance 19 Defining Performance and Breach 19 Discharge of Performance 19 Issues of Passage of Title and Risk of Loss 20 Remedies 21 Types of Remedies 21 Formulas for Damages 21 Third-Party Rights 21 Article 9 UCC Secured Transactions 23 Introduction and Creation of Security Interests 23 Perfection of Security Interests 24 Priorities in Security Interests 24 Rights of Secured Parties and Debtors 25 Bankruptcy and Insolvency 25 Prebankruptcy Options, and Introduction to and Declaration of Bankruptcy 25 Bankruptcy Process 26 Distribution of Debtor''s Estate 26 Discharge and Reaffirmation Agreements 28 Government Regulation of Business 29 Federal Securities Regulation 29 Liability Provisions: 1933 Act 29 Purposes, Requirements and Provisions of the 1934 Act 31 Criminal Liability 32 Other Federal Laws and Regulation 32 Employment Tax 32 Affordable Care Act 33 Worker Classification Laws and Regulations 33 Business Structure 34 Selection and Formation of Business Entity and Related Operation and Termination 34 Selection of a Business Entity 34 Formation 35 Operations: Nonfinancial Factors 35 Financial Structure 36 Termination 36 Rights and Duties 37 Federal Taxation of Property Transactions 39 Property Transactions 39 Sales and Dispositions of Assets 39 Authority of Owners and Managers 39 Section 1231 Assets 40 Section 1231 Assets--Cost Recovery 41 Like-Kind Exchanges and Involuntary Conversions 41 Other Nonrecognition Transactions 42 Federal Taxation of Individuals 43 Income 43 Gross Income--General Concepts and Interest 43 Gross Income--Other Inclusions 43 Gross Income--Exclusions 44 Taxation of Income from Business Entities 44 Accounting Methods and Periods--Individuals 45 Taxation of Employee Benefits 46 Taxation of Retirement Plans 46 Deductions 47 Deductions--Basic Principles 47 Deductions For AGI 48 Itemized Deductions--Medical, Taxes, Interest 49 Itemized Deductions--Other 49 Business Expenses 50 Deductions--Losses and Bad Debts 51 Limitations on Business Deductions 51 Individual Tax Issues 52 Tax Dependents 52 Filing Status 53 Other Taxes for Individuals 53 Tax Planning Strategies for Individuals 55 Tax Credits 55 Personal Tax Credits 55 Gift Taxation and Trusts 56 Federal Gift Tax and Trusts 56 Federal Taxation of Entities 58 Corporate Taxation 58 Formation of a Corporation 58 Corporate Income 58 Accounting Methods and Periods--Corporations 59 Special Corporate Deductions 60 Penalty Taxes 61 Taxation of Related Corporations 62 Distributions from a Corporation 63 Corporate Redemptions and Liquidations 64 Corporate Reorganizations 65 Multijurisdictional Tax Issues 66 State and Local Taxation 66 Taxation of Foreign Income 67 Tax-Exempt Entities 68 Tax-Exempt Organizations 68 Partnership Taxation 69 Formation and Basis 69 Flow-Through of Income and Losses 71 Transactions with Partners 72 Partnership Distributions 73 Sales and Terminations 74 S Corporation Taxation 75 Eligibility, Elections, Terminations 75 Income and Basis 76 Distributions and Special Taxes 77 Tax Credits 78 Business Tax Credits 78 Other Tax Issues 79 Tax Planning Strategies for Business Entities 79 Business Entity Choice 80 Answers and Explanations 83 Task-Based Simulations 135 Ethics, Professional Responsibilities, and Federal Tax Procedures 137 Federal Tax Practice and Procedures 137 Compliance Responsibilities 137 Federal Taxation of Property Transactions 138 Property Transactions 138 Section 1231 Assets -- Cost Recovery 138 Federal Taxation of Individuals 140 Individual Tax Issues 140 Tax Planning Strategies for Individuals 140 Estate and Gift Taxation 154 Federal Gift Tax 154 Federal Taxation of Entities 158 Corporate Taxation 158 Special Corporate Deductions 158.