IRS Practices and Procedures
Practice Questions
Course Introduction
IRS Practices and Procedures provides an in-depth examination of the Internal Revenue Services roles, responsibilities, and administrative processes within the U.S. tax system. The course covers key topics such as the organization and structure of the IRS, tax return processing, audit procedures, enforcement actions, appeals, collections, and compliance initiatives. Students will also explore taxpayer rights, ethical considerations, and the steps involved in representing clients before the IRS. By the end of the course, participants will have a practical understanding of navigating IRS interactions and addressing common issues encountered in tax practice.
Recommended Textbook
South Western Federal Taxation 2012 Comprehensive by William H. Hoffman
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Page 2
Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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Q1) Before the Sixteenth Amendment to the Constitution was ratified,there was no valid Federal income tax on individuals.
A)True
B)False Answer: False
Q2) Stealth taxes have the effect of generating additional taxes from higher income taxpayers.
A)True
B)False
Answer: True
Q3) Mona inherits her mother's personal residence,which she converts to a furnished rent house.These changes should affect the amount of ad valorem property taxes levied on the properties.
A)True
B)False
Answer: True
Q4) A major disadvantage of a flat tax type of income tax is its complexity.
A)True
B)False Answer: False
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Chapter 2: Working With the Tax Law
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Q1) The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.
A)True
B)False
Answer: True
Q2) Revenue Rulings deal with the internal management practices and procedures of the IRS.
A)True
B)False Answer: False
Q3) Accessing tax documents through electronic means offers limited advantages over a strictly paper-based approach.
A)True
B)False Answer: False
Q4) The Golsen rule has not been overturned by the U.S.Supreme Court.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Tax Determination: Personal and Dependency
Exemptions: an Overview of Property Transactions
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Q1) Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $13,500 for 2011,they should not claim the standard deduction.
A)True
B)False
Answer: False
Q2) In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?
Answer: A person being claimed as a dependent may satisfy qualified child status as to more than one taxpayer.See Example 16 in the text.
Q3) Which of the following items,if any,is deductible?
A) Parking expenses incurred in connection with jury duty-taxpayer is a dentist.
B) Contributions to mayor's reelection campaign.
C) Substantiated gambling losses (not in excess of gambling winnings) incurred on a vacation to Reno.
D) Speeding ticket incurred while on business.
E) Premiums paid on personal life insurance policy.
Answer: C
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Page 5
Chapter 4: Gross Income: Concepts and Inclusions
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Q1) In some foreign countries,the tax law specifically designates the types of income items that are includible in gross income.How does this approach compare with the U.S.Internal Revenue Code (§ 61)? What is a major advantage to the approach used in the U.S.tax law?
Q2) After the divorce,Jeff was required to pay $18,000 per year to his former spouse,Darlene,who had custody of their child.Jeff's payments will be reduced to $12,000 per year in the event the child dies or reaches age 21.During the year,Jeff paid the $18,000 required under the divorce agreement.Darlene must include the $12,000 in gross income.
A)True
B)False
Q3) Dick and Jane are divorced in 2010.At the time of the divorce,Dick had a lawsuit pending.He had filed suit against a former employer for overtime pay.As part of a divorce agreement,Dick agreed to pay Jane one-half of the proceeds from the lawsuit.In 2011,Dick collected $250,000 from the former employer and paid Jane $125,000.What are the tax consequences for Dick receiving the $250,000 and then paying Jane the $125,000?
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Page 6
Chapter 5: Gross Income: Exclusions
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Q1) Iris collected $100,000 on her deceased husband's life insurance policy.The policy was purchased by the husband's employer under a group policy.Iris's husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer.She elected to collect the policy in 10 equal annual payments of $12,500 each.
A) None of the payments must be included in Iris's gross income.
B) The first 8 payments are a return of her capital and thus Iris is not required to recognize any income from the policy until she receives the ninth payment.
C) For each $12,500 payment that Iris receives, she can exclude $10,000 ($100,000/$125,000 ´ $12,500) from gross income.
D) For each $12,500 that Iris receives, she can exclude from gross income $500 ($5,000/$125,000 ´ $12,500).
E) None of the above.
Q2) Workers' compensation benefits are included in gross income because the payments replace wages the individual would have otherwise received.
A)True B)False
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Page 7
Chapter 6: Deductions and Losses: in General
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Q1) In a related party transaction where realized loss is disallowed,when can the disallowed loss be used by the buyer on the subsequent sale of the property?
Q2) Investigation of a business unrelated to one's present business never results in a current period deduction of the entire amount if the amount of the investigation expenses exceeds $5,000.
A)True
B)False
Q3) Under certain circumstances,a cash method taxpayer must treat prepayments the same as an accrual method taxpayer.
A)True
B)False
Q4) The cost of legal advice associated with the preparation of an individual's Federal income tax return is not deductible because it is a personal expense.
A)True
B)False
Q5) Are there any circumstances under which lobbying expenditures are deductible?
Q6) Bruce owns several sole proprietorships.Must Bruce use the same accounting method for each of these businesses?
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Q1) Last year,Sarah (who files as single)had silverware worth $10,000 (basis $6,000)stolen from her home.Sarah's insurance company told her that her policy did not cover the theft.Sarah's other itemized deductions last year were $10,000.She had AGI of $30,000 last year.In August of the current year,Sarah's insurance company decided that Sarah's policy did cover the theft of the silverware and they paid Sarah $5,000.Determine the tax treatment of the $5,000 received by Sarah during the current year.
A) None of the $5,000 should be included in gross income.
B) $2,900 should be included in gross income.
C) $5,000 should be included in gross income.
D) Last year's return should be amended to include the $5,000.
E) None of the above.
Q2) What are the three methods of handling research and experimental expenditures incurred in a trade or business? Under what circumstances would you choose each?
Q3) A taxpayer may carry any NOL incurred back two years.
A)True
B)False
Q4) Why was the domestic production activities deduction (DPAD)enacted by Congress?
Q5) How is qualified production activities income (QPAI)calculated?
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Chapter 8: Depreciation, cost Recovery, amortization, and Depletion
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Q1) Discuss the tax consequences of listed property being used for the production of income compared to being used in a trade or business.
Q2) Under the alternative depreciation system (ADS),the half-year and mid-quarter conventions are applicable for personalty.
A)True
B)False
Q3) The cost recovery basis for property converted from personal use to business use is the fair market value of the property at the time of the conversion.
A)True
B)False
Q4) An election to use straight-line under ADS is made on a class-by-class basis for property other than eligible real estate.
A)True
B)False
Q5) Rod paid $950,000 for a new warehouse on April 14,2011.He sold the warehouse on September 29,2016.Determine the cost recovery deduction for 2011 and 2016.
Q6) Discuss the reason for the inclusion amount with respect to leased automobiles.
Page 10
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Q1) In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions,which of the following items involve self-employed?
A) Schedule C of Form 1040.
B) Form 2106.
C) Form W-2.
D) Schedule A of Form 1040.
E) None of the above.
Q2) Bill is the regional manager for a national chain of auto-parts stores and is based in Salt Lake City.When the company opens new stores in Boise,Bill is given the task of supervising their initial operation.For three months,he works weekdays in Boise and returns home on weekends.He spends $410 returning to Salt Lake City but would have spent $390 had he stayed in Boise for the weekend.As to the weekend trips,how much,if any,qualifies as a deduction?
A) $0, since the trips are personal and not work related.
B) $0, since Bill's tax home has changed from Salt Lake City to Boise.
C) $390.
D) $410.
E) None of the above.
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Q1) Carolyn mailed a check for $1,000 to a qualified charitable organization on December 31,2011.The $1,000 contribution is not deductible on Carolyn's 2011 tax return because the charity does not receive the check until 2012.
A)True
B)False
Q2) Judy paid $40 for Girl Scout cookies and $40 for Boy Scout popcorn.Judy may claim an $80 charitable contribution deduction.
A)True B)False
Q3) Excess charitable contributions that come under the 30% of AGI ceiling are always subject to the 30% of AGI ceiling in the carryover year.
A)True
B)False
Q4) Shirley pays FICA (employer's share)on the wages she pays her maid to clean and maintain Shirley's personal residence.The FICA payment is not deductible as an itemized deduction.
A)True B)False
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Chapter 11: Investor Losses
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Q1) Wolf Corporation has active income of $55,000 and a passive loss of $33,000 in the current year.Wolf cannot deduct the $33,000 loss if it is a closely held C corporation that is not a personal service corporation.
A)True
B)False
Q2) Rick,a computer consultant,owns a separate business (not real estate)in which he participates.He has one employee who works part-time in the business.
A) If Rick participates for 500 hours and the employee participates for 620 hours during the year, Rick qualifies as a material participant.
B) If Rick participates for 550 hours and the employee participates for 2,000 hours during the year, Rick qualifies as a material participant.
C) If Rick participates for 120 hours and the employee participates for 120 hours during the year, Rick does not qualify as a material participant.
D) If Rick participates for 95 hours and the employee participates for 5 hours during the year, Rick probably does not qualify as a material participant.
E) None of the above.
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Chapter 12: Tax Credits and Payments
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Q1) Expenses that are reimbursed by a taxpayer's employer under a dependent care assistance program canalso qualify for the credit for child and dependent care expenses.
A)True
B)False
Q2) Which,if any,of the following correctly describes the research activities credit?
A) The research activities credit is the greater of the incremental research credit, the basic research credit, or the energy research credit.
B) If the research activities credit is claimed, no deduction is allowed for research and experimentation expenditures.
C) The credit is not available for research conducted outside the United States.
D) All corporations qualify for the basic research credit.
E) None of the above.
Q3) The maximum credit for child and dependent care expenses is $2,100 if only one spouse is employed and the other spouse is a full-time student.
A)True
B)False
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14
Chapter 13: Property Transactions
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Q1) Discuss the treatment of realized gains from involuntary conversions.
Q2) How is the donee's basis calculated for the gift of appreciated property for a gift made before 1977? Assume the donor pays gift tax.
Q3) Sandy and Greta form Tan,Inc.by transferring the following assets to the corporation in exchange for 1,000 shares of stock each.
Sandy: Cash of $200,000
Greta: Land (worth $200,000; adjusted basis of $75,000). How much gain must Tan recognize on the receipt of these assets?
Q4) Albert is considering two options for selling land for which he has an adjusted basis of $70,000 and on which there is a mortgage of $100,000.Under the first option,Albert will sell the land for $150,000 with a stipulation in the sales contract that he liquidate the mortgage before the sale is complete.Under the second option,Albert will sell the land for $50,000 and the buyer will assume the mortgage.Calculate Albert's recognized gain under both options.
Q5) Nigel purchased a blending machine for $125,000 for use in his business.As to the machine,he has deducted MACRS cost recovery of $31,024,maintenance costs of $5,200,and repair costs of $4,000.Calculate Nigel's adjusted basis for the machine.
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Page 15
Chapter 14: Property Transactions: Capital Gains and Losses
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Q1) Velvet,Inc.,has a 2011 net § 1231 loss of $74,000 and had a $12,000 net § 1231 gain in 2010.For 2011,Velvet's net § 1231 loss is treated as:
A) Ordinary loss.
B) Ordinary gain.
C) Capital loss.
D) Capital gain.
E) None of the above.
Q2) Section 1231 property generally does not include notes receivable arising in the ordinary course of business.
A)True
B)False
Q3) As a general rule,the sale or exchange of an option to buy or sell property results in capital gain or loss if the property subject to the option is (or would be)a capital asset in the hands of the option holder.
A)True
B)False
Q4) Original issue discount is amortized over the life of the bond.
A)True
B)False
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Chapter 15: Alternative Minimum Tax
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Q1) Akeem,who does not itemize,incurred a net operating loss (NOL)of $50,000 in 2011.His deductions in 2011 included AMT tax preference items of $20,000,and he had no AMT adjustments.Assuming the NOL is not carried back,what is Akeem's ATNOLD carryover to 2012?
A) $50,000.
B) $30,000.
C) $20,000.
D) $40,000.
E) None of the above.
Q2) Tricia sold land that originally cost $105,000 for $92,000.There is a negative AMT adjustment of $13,000 associated with the sale of the land.
A)True
B)False
Q3) The required adjustment for AMT purposes for pollution control facilities placed in service in 2011 is equal to the difference between the amortization deduction allowed for regular income tax purposes and the depreciation deduction computed under ADS.
A)True
B)False
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Chapter 16: Accounting Periods and Methods
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Q1) Pink Corporation is an accrual basis taxpayer that uses the recurring item exception to the economic performance test for all relevant years.For 2011,the corporation's income subject to state income tax was $800,000 and the state corporate tax rate was 6%.During 2011,the corporation paid $42,000 on its estimated state income tax liability for that year.The remaining $6,000 of 2011 state income tax was paid in April 2012.In June 2011,the corporation paid $9,000 on its year 2010 state income tax liability,as a result of an audit of the 2010 return that was conducted in 2011.As a result of the above:
A) Pink should deduct $42,000 as state income taxes for 2011.
B) Pink should deduct $51,000 as state income taxes for 2011.
C) Pink should deduct $57,000 as state income taxes for 2011.
D) Pink should deduct $48,000 as state income taxes for 2011 and amend its 2010 return to claim an additional $9,000 state income tax expense.
E) None of the above.
Q2) When an accrual basis taxpayer finances the construction of its building by borrowing,the interest is deductible in the year it accrues.
A)True
B)False
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Page 18
Chapter 17: Corporations: Introduction and Operating Rules
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Q1) Which of the following statements is incorrect with respect to the treatment of net operating losses by corporations?
A) A corporation may elect to forgo the carryback period and just carryforward an NOL.
B) A corporation may claim a dividends received deduction in computing an NOL.
C) An NOL is generally carried back 2 years and forward 20 years.
D) Unlike individuals, corporations do not adjust their NOLs for net capital losses or nonbusiness deductions.
E) None of the above.
Q2) Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions - subtractions = taxable income.Which of the following items is an addition on Schedule M-1?
A) Premiums paid on key employee life insurance.
B) Proceeds of life insurance paid on death of key employee.
C) Charitable contributions carryover from previous year.
D) Tax-exempt interest.
E) None of the above.
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Chapter 18: Corporations: Organization and Capital Structure
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Q1) Wade and Paul form Swan Corporation with the following investments.Wade transfers machinery (basis of $40,000 and fair market value of $100,000),while Paul transfers land (basis of $20,000 and fair market value of $90,000)and services rendered (worth $10,000)in organizing the corporation.Each is issued 25 shares in Swan Corporation.With respect to the transfers:
A) Wade has no recognized gain; Paul recognizes income/gain of $80,000.
B) Neither Wade nor Paul has recognized gain or income on the transfers.
C) Swan Corporation has a basis of $30,000 in the land transferred by Paul.
D) Paul has a basis of $30,000 in the 25 shares he acquires in Swan Corporation.
E) None of the above.
Q2) Adam transfers cash of $300,000 and land worth $200,000 to Camel Corporation for 100% of the stock in Camel.In the first year of operation,Camel has net taxable income of $70,000.If Camel distributes $50,000 to Adam:
A) Adam has taxable income of $50,000.
B) Camel Corporation has a tax deduction of $50,000.
C) Adam has no taxable income from the distribution.
D) Camel Corporation reduces its basis in the land to $150,000.
E) None of the above.
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Chapter 19: Corporations: Distributions Not in Complete Liquidation
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Q1) What are the tax consequences of a qualifying stock redemption to the distributing corporation?
Q2) Renee,the sole shareholder of Indigo Corporation,sold her stock to Chad on July 1 for $180,000.Renee's stock basis at the beginning of the year was $120,000.Indigo made a $60,000 cash distribution to Renee immediately before the sale,while Chad received a $120,000 cash distribution from Indigo on November 1.As of the beginning of the current year,Indigo had $26,000 in accumulated E & P,while current E & P (before distributions)was $90,000.Which of the following statements is correct?
A) Renee recognizes a $60,000 gain on the sale of the stock.
B) Renee recognizes a $64,000 gain on the sale of the stock.
C) Chad recognizes dividend income of $120,000.
D) Chad recognizes dividend income of $30,000.
E) None of the above.
Q3) When computing E & P,an adjustment to taxable income is necessary for any domestic production activities deduction.
A)True
B)False
Q4) When is a redemption to pay death taxes under § 303 most advantageous?
Q5) Explain the stock attribution rules that apply in the case of stock redemptions.
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) Penguin Corporation purchased bonds (basis of $95,000)of its 100% owned subsidiary,Finch Corporation,at a discount.Pursuant to a § 332 liquidation and in satisfaction of the indebtedness,Finch distributes land worth $100,000 (basis of $110,000)to Penguin.Which of the following statements is correct with respect to the distribution of land?
A) Neither Finch nor Penguin recognize gain (or loss).
B) Finch recognizes a loss of $10,000 and Penguin recognizes no gain.
C) Finch recognizes no loss and Penguin recognizes a gain of $5,000.
D) Finch recognizes a loss of $10,000 and Penguin recognizes a gain of $5,000.
E) None of the above.
Q2) Legal dissolution under state law is not required for a liquidation to be complete for tax purposes.
A)True
B)False
Q3) Explain how the tax treatment for parties involved in a tax-free reorganization almost exactly parallels the treatment under the like-kind exchange provisions of § 1031.
Q4) The treatment of corporate reorganizations is similar to like-kind exchanges.
A)True
B)False
Page 22
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Chapter 21: Partnerships
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Q1) In a proportionate liquidating distribution,Alexandria receives a distribution of $70,000 cash,accounts receivable (basis of $0 and fair market value of $20,000),and land (basis of $30,000 and fair market value of $60,000).In addition,the partnership repays all liabilities,of which Alexandria's share was $40,000.Alexandria's basis in the entity immediately before the distribution was $90,000.As a result of the distribution,what is Alexandria's basis in the accounts receivable and land,and how much gain or loss does she recognize?
A) $0 basis in accounts receivable; $0 basis in land; $20,000 gain.
B) $0 basis in accounts receivable; $30,000 basis in land; $0 gain or loss.
C) $0 basis in accounts receivable; $0 basis in land; $0 gain or loss.
D) $0 basis in accounts receivable; $30,000 basis in land; $0 gain.
E) $20,000 basis in accounts receivable; $0 basis in land; $20,000 gain.
Q2) The JPM Partnership is a US-based manufacturing company.JPM calculates the domestic production activities deduction (§ 199)and deducts that amount on its Form 1065.
A)True B)False
Q3) Meagan is a 40% general partner in the calendar year,cash basis MKK Partnership.The partnership received $100,000 income from services and paid the following other amounts:
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Chapter 22: S Corporations
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Q1) A maximum dollar sales limitation applies to an S corporation.
A)True
B)False
Q2) If an S corporation shareholder's basis in a loan to the entity has been reduced,the shareholder recognizes gross income when the S corporation ____________________ the shareholder.
Q3) Compensation for services rendered to an S corporation is subject to FICA taxes.
A)True
B)False
Q4) Lott Corporation in Macon,Georgia converts to S corporation status in 2011.Lott used the LIFO inventory method in 2010 and had a LIFO inventory of $420,000 (FIFO value of $550,000).How much tax must be added to the 2010 corporate tax liability,assuming that Lott is subject to a 35% tax rate.
A) $0.
B) $11,375.
C) $45,500.
D) $130,000.
E) None of the above.
Q5) List some of the separately stated items listed on Schedule K of the Form 1120S.
Page 24
Q6) What are the characteristics of an S corporation's straight debt?
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Chapter 23: Exempt Entities
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Q1) Which of the following statements are correct with respect to the unrelated business income tax?
A) Under certain circumstances, a corporate sponsorship payment can be classified as not being an unrelated trade or business.
B) Under certain circumstances, a casino game can be classified as not being an unrelated trade or business.
C) Under certain circumstances, the exchanging or renting of membership lists to other exempt organizations can be classified as not being an unrelated trade or business.
D) Only a. and c. are correct.
E) a., b., and c. all are correct.
Q2) An organization that is a for-profit entity can partially qualify for exempt status. A)True
B)False
Q3) Loyal,Inc.,is a §501(c)(3)organization that is not classified as a private foundation.During the current year,it is subject to intermediate sanctions.What other options does the IRS have in dealing with an exempt organization engaging in prohibited transactions?
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Chapter 24: Multistate Corporate Taxation
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Q1) Typical indicators of nexus include the presence of employees based in the state,and the ownership or lease of realty there.
A)True
B)False
Q2) The property factor includes business assets that the taxpayer owns,but also those merely used under a lease agreement.
A)True
B)False
Q3) In some states,an S corporation must withhold Federal income tax for its shareholders who ____________________ (are/are not)state residents.
Q4) The use tax is designed to complement the sales tax.A use tax typically covers purchases made out of state and brought into the jurisdiction.
A)True
B)False
Q5) Identify some state/local income tax issues facing pass-through entities such as S corporations,partnerships,and LLCs.
Q6) Summarize the principles of multistate tax planning.
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Page 26
Chapter 25: Taxation of International Transactions
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Q1) Section 482 is used by the Treasury to:
A) Force taxpayers to use arms-length transfer pricing on transactions between related parties.
B) Reallocate income, deductions, etc., to a related taxpayer to minimize tax liability.
C) Increase information that is reported about U.S. corporations with non-U.S. owners.
D) All of the above.
E) None of the above.
Q2) LocalCo merges into HeirCo,a non-U.S.entity,in a transaction that would qualify as a "Type A" reorganization.The resulting realized gain is tax-deferred under U.S.income tax law,using §§ 351 and 368.
A)True
B)False
Q3) Income tax treaties may provide for either higher or lower withholding tax rates on interest income than the rate provided under U.S.statutory law.
A)True
B)False
Q4) Discuss the primary purposes of income tax treaties.
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Chapter 26: Tax Practice and Ethics
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Q1) Which of the following statements does not reflect the rules governing the accuracy-related penalty for negligence?
A) The penalty rate is 20%.
B) The penalty is imposed only on the part of the deficiency attributable to negligence.
C) The penalty applies only to intentional tax understatements by the taxpayer.
D) The penalty is waived if the taxpayer uses Form 8275 to disclose a return position that is reasonable though contrary to the IRS position.
Q2) When a tax dispute is resolved,interest is paid by or to the government.List three or more features of the interest computations that arise when a tax return is audited.
Q3) During an audit,the IRS might require that the taxpayer produce the ____________________ that underlie the tax return data.
Q4) Keepert uses "two sets of books." She only reports one-half of her cash sales on the records that she uses to complete her Federal income tax return.The statute of limitations for Keepert's return is six years.
A)True
B)False
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Page 28
Chapter 27: The Federal Gift and Estate Taxes
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Q1) In the case of a transfer by gift,a QTIP election causes the property to be subject to the estate tax upon the death of the donee spouse.
A)True
B)False
Q2) At the time of his prior death,Raul owned a residence with his wife,Manuela,as tenants by the entirety.The residence was purchased by Manuela ten years ago at a cost of $300,000 and has a fair market value of $1.4 million.Raul's estate will be allowed no marital deduction as to the property.
A)True
B)False
Q3) Under certain circumstances,the gift-splitting election can be made even though the electing spouses are no longer married to each other.
A)True
B)False
Q4) In the past,the amount of the unified tax credit has been the same for both transfers by gift and transfers by death.
A)True
B)False
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Chapter 28: Income Taxation of Trusts and Estates
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Q1) A fiduciary arrangement creates a separate tax and legal entity,but Subchapter J applies a modified ____________________ principle in deriving the Federal income tax liability for estates,trusts,and their beneficiaries. or
Q2) It is ____________________ (rare,common,impossible)for a trust or estate to incur a liability for the alternative minimum tax.
Q3) The Leonardo Estate operates a business and generates cost recovery deductions.Which taxpayer(s),if any,can deduct these items,e.g.,the deceased,the estate,the income or remainder beneficiaries?
Q4) Which of the following is a typical duty of a trustee?
A) File the entity's returns for the local property tax on real estate.
B) File the entity's state and Federal income tax returns.
C) Invest the assets that comprise the corpus of the entity.
D) Distribute entity accounting income to the beneficiaries in accordance with the provisions of the trust instrument.
E) All of the above.
Q5) A gift to charity from its 2011 income is deductible on an estate's Form 1041 if it is made by the end of the ____________________ tax year.
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