Tax Law & Compliance Flashcards

When is Form 1120-S due for a calendar-year S corporation?

Answer: March 15

S corporation returns are due on the 15th day of the third month after year-end, which is March 15 for calendar-year filers.

When is Form 1120 due for a calendar-year C corporation?

Answer: April 15

C corporation returns are due on the 15th day of the fourth month after year-end, which is April 15 for calendar-year filers.

To take effect for the current tax year, Form 2553 generally must be filed no later than when?

Answer: 2 months and 15 days after the tax year begins

An S election made within two months and 15 days after the tax year begins applies to that year.

What penalty applies to an undisclosed transaction that lacks economic substance under IRC 7701(o)?

Answer: 40%

IRC 6662(i) raises the 20% economic substance penalty to 40% when the relevant facts are not adequately disclosed.

How long does the IRS generally have to collect a tax after it is assessed?

Answer: 10 years

IRC 6502 sets the Collection Statute Expiration Date at 10 years from assessment.

Which form does a spouse use to request innocent spouse relief?

Answer: Form 8857

Form 8857 requests innocent spouse, separation of liability, or equitable relief.

Which form does a taxpayer submit to propose settling a tax debt for less than the full amount owed?

Answer: Form 656

Form 656 is the Offer in Compromise application.