December 2016 LACBA MCLE Test and Answer Sheet

Test No. 263: Finding the Path

To access the article related to this test, please click here.
  
Instructions for Obtaining MCLE Credit

The Los Angeles County Bar Association certifies that this activity has been approved for Minimum Continuing Legal Education credit by the State Bar of California in the amount of 1 hour. To apply for credit, please follow the instructions.

1. Study the CLE article.

2. Answer the test questions by marking the appropriate boxes. Each question has only one answer.

3. Photocopies of this answer sheet may be submitted; however, this form should not be enlarged or reduced. Mail the answer sheet and the $20 testing fee ($25 for non-LACBA members) to:

Los Angeles Lawyer
MCLE Test
P.O. Box 55020
Los Angeles, CA 90055

Make checks payable to Los Angeles Lawyer.

4. You can also fill in the test form and submit it directly to LACBA by clicking "Submit." To submit your test answers online you will need to pay by credit card. After submitting your answers you will be presented with a screen requesting payment information. This information will be submitted in a secure mode which will allow you to safely transmit your credit card number over the Internet. If you prefer not to pay by credit card, please print this answer sheet and submit your responses by regular mail.

5. Within six weeks, Los Angeles Lawyer will return your test with the correct answers, a rationale for the correct answers, and a certificate verifying the CLE credit you earned through this self-assessment activity.

6. For future reference, please retain the CLE test materials returned to you.


 

Test Sheet
 



  
Mark your answers to the test by clicking next to your choice.  All questions must be answered.  Each question has only one answer. This test is worth 1 hour of credit.*

1. The new partnership audit rules apply to all partnership audits for taxable years beginning after December 31, 2015.


2. The scope of the new partnership audit rules is limited to partnerships with more than 100 partners.


3. If a partnership elects out of the new partnership audit rules, the IRS audit must be conducted under the TEFRA audit rules.


4. Any partnership with 100 or fewer partners can elect out of the new partnership audit rules.


5. The new partnership audit rules provide for the partnership representative to receive reasonable compensation for his services in the partnership in the partnership audit.


6. The partnership’s accountant or attorney can be selected as the partnership representative.


7. The new partnership audit rules provide that the general partner of a limited partnership has the right to remove the partnership representative.


8. The new partnership audit rules permit the partnership to elect to push out audit adjustments to adjustment-year partners, who then are required to pay tax on the audit adjustments.


9. The new partnership audit rules clarify that the partnership can push out audit adjustments to the ultimate taxpaying partners through tiers of partnerships that are partners in the audited partnership.


10. Under the new partnership audit rules, the IRS has the option of making adjustments in a partner’s share of partnership items either in the audit of the partnership or in an audit of the partner.


11. In computing the imputed underpayment, income and losses are netted together without considering character and then are taxed at a specified tax rate that can be modified by the IRS.


12. If the partnership elects out of the new partnership audit rules, the partners must cooperate and agree on the tax arguments that they will make in audit.


13. If the partnership makes the push-out election, it must do so within 60 days of the partnership’s receiving notice of institution of the partnership audit.


14. The partnership must inform reviewed-year partners of their partnership audit adjustments as a condition to the partnership making the push-out election.


15. Under the new partnership audit rules, an audit settlement agreement with the IRS must be approved by the partnership and the partnership representative.


16. TEFRA rules cease to apply to existing partnership audits after 2017.


17. The new partnership audit rules require that a partner report his partnership tax items in accordance with the treatment of those tax items on the partnership return.


18. The election out of the new partnership audit rules must be made within 30 days of notice of institution of an IRS audit.


19. The IRS can use an expedited procedure to assess a partner’s tax liability as a math error if the partner reports an item in a manner inconsistent with the partnership return.


20. A partnership under audit under the new partnership audit rules may be able to reduce its imputed underpayment by reviewed-year partners filing amended returns with payment of the adjusted tax.

 


Before clicking the Submit button, please verify that all questions have been answered. An error message will appear if not all questions are answered.

* The Los Angeles County Bar Association has been approved as a continuing legal education provider of Minimum Continuing Legal Education credit by the State Bar of California. This self-assessment activity will qualify for Minimum Continuing Legal Education credit by the State Bar of California in the amount of one hour.