NEW
Font size
S
M
L
XL
WorksheetsPFL # 2a State & Federal Income Taxes
Total questions: 24
Worksheet time: 48mins
Name
Class
Date
1.
People pay taxes for many reasons. Which of the following is NOT one of those reasons?
a)
controlling how their tax dollars are spent
b)
fear of IRS penalties and imprisonment
c)
moral reasons
d)
civic duty
2.
If you knowingly underpay your taxes, the IRS can impose all of the following EXCEPT
a)
forcing your children to pay your tax burden
b)
bringing charges ending in imprisonment
c)
assessing a penalty
d)
collecting the taxes
3.
An honor system under which you pay your taxes is called
a)
corporate compliance
b)
individual compliance
c)
mandatory compliance
d)
voluntary compliance
4.
Federal and state income tax returns are due every year on
a)
January 31
b)
April 15
c)
July 15
d)
December 31
5.
The primary purpose of taxes is to
a)
provide goods and services that are too expensive for people to buy
b)
provide services that improve our quality of life
c)
take money from one group and give it to another
d)
allow people to have free goods and services
6.
The division of the United States Treasury that is charged with the responsibility of maintaining confidence in and managing the federal tax system is called the
a)
Department of Justice
b)
President
c)
Internal Revenue Service
d)
Congress
7.
Although people in the United States are required to pay taxes, our tax system depends on a principle called
a)
civic duty
b)
voluntary compliance
c)
ethics
d)
moral virtue
8.
If you make an honest, accidental mistake when filing your taxes, you
a)
may be tried in court, and, if found guilty, jailed
b)
may have a fine or penalty for the mistake
c)
will never have any fine or penalty for the mistake
d)
can be tried in court and fined
9.
Which of the following statements is TRUE?
a)
Many people are able to cheat the government and avoid paying taxes by using phony deductions or failing to report their income appropriately.
b)
Taxes paid provide services that impact only quality of life in the United States, not the standard of living.
c)
Everyone who receives a paycheck is required to submit a tax return to the IRS by April 15.
d)
Individuals do not have to pay taxes if they believe it is a violation of their religious beliefs.
10.
Which of the following is an example of public goods or services paid for by taxes?
a)
Churches
b)
Roads and highways
c)
Restaurants
d)
Shopping malls
11.
If people in Group A are taxed MORE than people in Group B, it may
a)
decrease Group A’s incentive to earn more money
b)
have no effect on either group’s incentive to earn more money
c)
increase the Group B’s incentive to earn more money
d)
increase Group A’s incentive to earn more money
12.
A “free rider” is defined as a
a)
voucher that poor people receive to help them with transportation costs
b)
person who pays extra tax so someone else does not have to pay
c)
person who benefits from services without paying for them
d)
person who sneaks onto trains without paying taxes
13.
Which of the following taxes is regressive?
a)
A tax where the amount paid depends on income
b)
Oklahoma State Income Tax
c)
Federal Income Tax
d)
Sales Tax
14.
A tax paid on certain goods and services at the point in time they are purchased is
a)
a fair tax
b)
an income tax
c)
a sales tax
d)
a progressive tax
15.
The gasoline tax is an example of the _____ principle.
a)
benefit received
b)
progressive tax
c)
free rider
d)
ability to pay
16.
Quality of life is
a)
the amount of income you earn
b)
the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a country
c)
a set of principles or beliefs that govern an individual’s actions
d)
the overall enjoyment of life and sense of well being
17.
All of the statements below are good ways to avoid a tax audit, EXCEPT
a)
keeping good records of your income and expense
b)
being honest with the information you report
c)
under-reporting your tax income
d)
filing your income tax on time
18.
The overall goal of tax policy in the United States is to ensure that taxes are
a)
low
b)
illegal
c)
equal
d)
fair
19.
The federal income tax has different tax bracket percentages and income levels for single individual. As a result of this practice,
a)
the federal income tax is based on the benefits-received theory of taxation
b)
you pay different percentages of taxes as your income increases
c)
all of your income is taxed at the highest percentage rate
d)
the federal income tax is a regressive tax
20.
The ability to pay tax principle says that
a)
people who can afford to pay taxes should pay more than those with limited ability to pay
b)
people who use certain public goods and services should pay for them with taxes
c)
the proportion of income paid in taxes decreases as income decreases
d)
the proportion of income paid in taxes increases as income increases
21.
Which of the following statements is FALSE?
a)
The tax system in the United States is a combination of different tax theories and different kinds of taxes.
b)
Public goods and services provide benefits to only one person at a time; therefore, they should be available only to those who pay for them.
c)
We should continue paying taxes as long as the benefits to society are greater than the costs.
d)
Everyone benefits in some way from the public goods and services provided with our tax dollars.
22.
Oklahoma has a _____ income tax system.
a)
outdated
b)
passive
c)
progressive
d)
regressive
23.
Employees receive a form from their employers each year with information required for their federal income taxes. This form is called a
a)
W2
b)
WD40
c)
CPD2
d)
NP4
24.
The PRIMARY purpose of taxes is to
a)
provide services that improve the quality of life in the United States
b)
provide goods and services that are too expensive for people to buy
c)
take money from one group and give it to another
d)
allow people to have free goods and services
Reset
