1. One indicia of independent contractor (rather than employee) status is when the individual performing the services is paid based on time spent (rather than on tasks performed).
a. True
b. False
2. In some cases it may be appropriate for a taxpayer to report work-related expenses by using bothForm 2106 and Schedule C.
a. True
b. False
3. The IRS willissue advanced rulings as to whether a workers status is that of an employee or an independent contractor.
a. True
b. False
4. Jake performs services for Maude. If Maude provides the helper and tools, this is indicative of independent contractor (rather than employee) status.
a. True
b. False
5. A statutory employee is not a common law employee but is subject to Social Security tax.
a. True
b. False
6. For tax purposes, a statutory employee is treated the same as a common law employee.
a. True
b. False
7. 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 notexist.
a. True
b. False
8. The work-related expenses of an independent contractor will be subject to the 2%-of-AGI floor.
a. True
b. False
9. 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 first and second job.
a. True
b. False
10.A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expense.
a. True
b. False
11.After the automatic mileage rate has been set by the IRS for a year, it cannotlater be changed by the IRS.
a. True
b. False
.
12.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
13.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
14.A deduction for parking and other traffic violations incurred during business use of the automobile is allowed under the actual cost method but not the automatic mileage method.
a. True
b. False
15.A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.
a. True
b. False
16.Once the actual cost method is used, a taxpayer cannotchange to the automatic mileage method in a later year.
a. True
b. False
17.For tax purposes, travel is a broader classification than transportation.
a. True
b. False
18.Amy lives and works in St. Louis. In the morning she flies to Boston, has a three-hour business meeting, and returns to St. Louis that evening. For tax purposes, Amy wasaway from home.
a. True
b. False
