Swft12 - Individual Income Taxes, 35e Test Bank

1028. One indicia of independent contractor (rather than employee) status is when the individual performing the services is paid based on tasks performed (rather than time spent).

*a. True
b. False

1029. In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C.

*a. True
b. False

1030. The IRS will issue advanced rulings as to whether a worker’s status is that of an employee or an independent contractor.

*a. True
b. False

1031. Jake performs services for Maude. If Maude provides Jake with a helper and tools, this is indicative of independent contractor (rather than employee) status.

a. True
*b. False

1032. A statutory employee is not a common law employee but is subject to income tax withholdings.

a. True
*b. False

1033. For tax purposes, a statutory employee is not treated the same as a common law employee.

*a. True
b. False

1034. If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment, an employer-employee relationship does not exist.

*a. True
b. False

1035. The work-related expenses of an independent contractor will be subject to the 2%-of-AGI floor.

a. True
*b. False

1036. After she finishes working at her main job, Ann returns home, has dinner, then drives to her second job. Ann may deduct the mileage between her home and second job.

a. True
*b. False

1037. After the automatic mileage rate has been set by the IRS for a year, it cannot later be changed by the IRS.

a. True
*b. False

1038. In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

*a. True
b. False

1039. A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.

*a. True
b. False

1040. A deduction for