1. To catch corporations that are claiming excessive deductions for 401(k) and similar plan contributions, the IRS is matching the contribution deductions listed on Form _____ with the amount on the same firm’s annual Form _____. If the two amounts disagree by more than $_____, the IRS is asking the employer to explain the difference.
2. One IRS audit target is small firms that do not apply _____ _____ to ICs that have not provided a valid TIN for the employer to put on the 1099.
3. Lump-sum severance pay (is/is not) subject to FICA and FITW.
4. To book Bitcoin or other digital currencies, you must determine the _____ of the digital currency upon receiving it and compute any _____ or _____ when the digital currency is exchanged for goods or services.
5. In states where UI benefits may be denied if an individual is fired for cause—that is, the employer had a valid reason for the termination—to successfully contest the claim for UI benefits, the employer must be able to provide the state with _____ _____.
7. If you hire high school students for the summer must you withhold FICA? If you hire retirees receiving Social Security benefits for the summer, must you withhold FICA?
8. Are you required to offer part-timers and temps the same benefits that you offer full-time employees?
9. Your firm can recover administrative and legal costs from the IRS if the agency’s position is found “not substantially justified.” If, in a dispute with the IRS, your firm receives a 30-day letter from the agency, does this represent its position? If in a dispute with the IRS, the agency uses a refund to pay your firm’s alleged tax liability, does this represent its position?
10. Is lump-sum severance pay subject to FICA tax? federal income tax withholding?
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1. 1120, 5500, $1,000
2. backup withholding
4. basis, gain, loss
5. written documentation
7. yes, yes
9. no, no
10. yes, yes