MM - Chapter 3 Exam

The willful failure to pay taxes is called

• Tax credit

• Tax surplus

• Tax evasion

• Tax deficit

The Internal Revenue Service is an agency of the U.S. who's main functions are to collect income taxes and to enforce tax laws.

• audit

• Internal Revenue Service

• U.S. treasury

• Congress

A tax, also known as a flat tax, is a tax for which the rate stays the same regardless of one's income. An example is real property tax

• progressive

• regressive

• tax credit

• proportional

An examination of income tax returns. The IRS conducts millions of these each year.

• audit

• tax credit

• evasion

• voluntary compliance

Our income tax system, both federal and state, is based on voluntary compliance, which means all citizens prepare and file tax returns on their own.

• tax credit

• deficit

• voluntary compliance

• Congress

Money paid to support a former spouse is called. It is taxable for the person receiving it and deductible (from gross income) for the person paying it.

• alimony

• child support

• tax evasion

• audit

If you must file a tax return, the deadline is

• April 18

• March 22

• January 1

• April 15

The amount of total tax you owe on a year's income is

• tax credit

• tax liability

• tax evasion

• progressive taxes

An income range that a tax rate is applied to is called

• tax bracket

• tax credit

• tax liability

• tax evasion

The power to levy federal taxes rests with the

• U.S. Constitution

• U.S. Treasury

• U.S. Congress

• President