Answer the questions that follow by clicking on the right answer. When
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True
a
False
b
2. Qualified military and support personnel
serving in the Persian Gulf region are eligible for payment and filing
extensions.
True
a
False
b
3. Vendor credits for the timely payment
of sales and use taxes are reduced by one-half for fiscal years 2003
and 2004 only.
True
a
False
b
4. The current determined value of open
space land subject to a perpetual or long-term easement is set at
$500 per acre.
True
a
False
b
5. Calendar year corporations' income tax
returns are due April 15th.
True
a
False
b
6. The personal exemption amount is $2,400.
True
a
False
b
7. The entire value of a property that
passes from a decedent to a Class 1 beneficiary is exempt from inheritance
tax.
True
a
False
b
8. A business entity that contributes at
least $500 to an approved Neighborhood Partnership Program may be
eligible for a credit equal to 50% of the contribution.
True
a
False
b
9. The credit for long-term employment
of ex-felons is available only if the ex-felon is employed for at
least two years.
True
a
False
b
10. The enterprise zone credit is taken
over ten years and is a percentage of the local property tax imposed
on qualified property.
True
a
False
b
11. S Corporations are not liable for personal
income tax and so are not required to file a return.
True
a
False
b
12. A fiduciary is any person holding the
legal title to property for the use and benefit of another person.
True
a
False
b
13. The conformity doctrine gives the Comptroller
the discretionary authority that the Internal Revenue Code grants
to the U.S. Secretary of the Treasury so as to apply discretion to
modify income in the case of two or more businesses owned by the same
interests.
True
a
False
b
14. Maryland requires an addition to federal
adjusted gross income in a year in which a federal net operating loss
is used to offset a net addition modification.
True
a
False
b
15. Income exempt under federal law or
treaties from federal, but not state, taxation is added to federal
AGI.
True
a
False
b
16. A subtraction may be taken for state
or local income tax refunds.
True
a
False
b
17. Any person who violates any qualification
criteria for the volunteer fire personnel subtraction modification
is subject to a fine of $2,000.
True
a
False
b
18. An individual may claim both the military
retirement income subtraction and the pension subtraction for the
same benefits.
True
a
False
b
19. Personal representatives may deduct
$600 as an additional exemption.
True
a
False
b
20. A pass-through entity may limit its
liability to the sum of its nonresident partners' distributive cash
flow.
True
a
False
b
21. Nonbusiness income from interest, dividends,
and annuities is allocable to Maryland.
True
a
False
b
22. The credit for income taxes paid to
other states may not be claimed against city or county income taxes.
True
a
False
b
23. An earned income credit may be claimed
against Maryland county personal income tax.
True
a
False
b
24. Unused Child Care Credits may be carried
over for up to 5 years.
True
a
False
b
25. The Disability Employment Credit is
equal to 30% of the first $6,000 of wages paid to each qualified employee
during the first year of employment.
True
a
False
b
26. The Jobs Creation Credit has been repealed.
True
a
False
b
27. The Credit for Business Expansion is
only available if the local governing body has passed authorizing
legislation.
True
a
False
b
28. Department of Revenue approval is no
longer necessary prior to claiming the Neighborhood Partnership Program
credit.
True
a
False
b
29. The Heritage Structure Rehabilitation
Credit is scheduled to terminate on June 1, 2004.
True
a
False
b
30. Unused Solar Energy Property Credits
may be carried forward for five taxable years.
True
a
False
b
31. Very little Maryland case law exists
regarding the determination of whether an individual is an employee
or an independent contractor for withholding purposes.
True
a
False
b
32. Filing deadlines are dependent on the
amount of the employer's quarterly liability.
True
a
False
b
33. Any withholding tax payment of $15,000
or more must be paid through ETF.
True
a
False
b
34. The credit for taxes paid to other states
may be claimed on the composite return.
True
a
False
b
35. An extension for reasonable cause will
be granted if the taxpayer states that it is due to illness.
True
a
False
b
36. Interest on refunds begins to accrue
on the 45th day after the claim is filed until the date the refund
is paid.
True
a
False
b
37. An income tax assessment may not be
made after three year from the later of the date that the return is
filed or the date that the return is due.
True
a
False
b
38. The penalty for underpaying estimated
tax without reasonable cause is equal to 25% of the amount underestimated.
True
a
False
b
39. The Corporate Income Tax is imposed
at the rate of 7%.
True
a
False
b
40. Common trust funds are exempt from
Maryland corporate income tax.
True
a
False
b
41. Maryland income tax law uses federal
taxable income as the starting point for computing taxable income.
True
a
False
b
42. Maryland has incorporated federal amendments
made by the Job Creation and Worker Assistance Act of 2002.
True
a
False
b
43. The term "unitary business"
is defined in Maryland's regulations.
True
a
False
b
44. Special apportionment formulas apply
to leasing or rental operations.
True
a
False
b
45. The property factor includes owned
real property but not rented property.
True
a
False
b
46. Officer's compensation and 401(k) earnings
and contributions are included in the payroll factor.
True
a
False
b
47. A credit is allowed against income
tax for estimated tax payments made for the year.
True
a
False
b
48. The Employment Opportunity Credit is
the same as personal income tax.
True
a
False
b
49. Each member of an affiliated group
of corporations is required to file a separate return.
True
a
False
b
50. Maryland has adopted the Multistate
Tax Compact.
True
a
False
b
51. The buyer is liable for the tax, but
the vendor is required to collect and remit the tax as trustee for
the state.
True
a
False
b
52. Room cancellation charges are subject
to sales and use taxes.
True
a
False
b
53. The taxability of items in interstate
and foreign commerce depends generally on three conditions at the
time of sale.
True
a
False
b
54. Prepaid telephone calling arrangements
are subject to sales and use taxes.
True
a
False
b
55. Maryland use tax is a complimentary
tax to the sales tax.
True
a
False
b
56. Interest paid by the seller and rebilled
to the buyer is deductible from the taxable price.
True
a
False
b
57. Sales and use taxes are computed on
the basis of anything of value transferred in a sale.
True
a
False
b
58. Local governments are allowed to impose
a local general sales or use tax.
True
a
False
b
59. Rentals of sporting equipment are subject
to tax.
True
a
False
b
60. Transactions involving automatic teller
machines are exempt from sales and use taxes.
True
a
False
b
61. Purchases of installed trees are not
subject to tax.
True
a
False
b
62. If free installation is offered in
connection with the sale of tangible personal property, the tax on
the full price of the property must be collected.
True
a
False
b
63. Hearing devices are subject to sales
and use taxes.
True
a
False
b
64. Lump sum charges to repair personal
property are exempt from tax.
True
a
False
b
65. The sale of an ongoing business is
generally taxable.
True
a
False
b
66. The federal Buck Act provides that
state sales tax can be collected in federal areas although not from
the government itself.
True
a
False
b
67. Exemption certificates expire at set
three-year intervals.
True
a
False
b
68. Taxpayers are not required to file
returns when no payment is due.
True
a
False
b
69. Vendors are required to keep records
of all taxable sales for four years.
True
a
False
b
70. A credit is allowed for any sales and
use taxes that may have been overpaid on or before the date a deficiency
was due.
True
a
False
b
71. A person who engages in business without
a sales and use tax license is guilty of a misdemeanor punishable
by a fine of up to $1,000.
True
a
False
b
72. An estate tax and a generation-skipping
transfer tax are imposed to absorb the federal credits for state death
taxes.
True
a
False
b
73. Transfers are taxable when made by
will.
True
a
False
b
74. An inheritance tax due with respect
to any legacy is payable within 9 months of the distribution.
True
a
False
b
75. For tax years after June 30, 2000,
all personal property is exempt from state and local taxes.
True
a
False
b
76. Exemptions are effective for the taxable
year that follows the date the exemption was approved.
True
a
False
b
77. Property devoted to a governmental
purpose and owned by the federal, state, county, or municipal governments
is exempt from tax.
True
a
False
b
78. Property owned by a religious group
and used for public religious worship is exempt from property tax.
True
a
False
b
79. A mobile home may not be assessed as
an improvement if it is unoccupied and for sale.
True
a
False
b
80. A biotechnology firm would not qualify
for the enhanced property tax credit.
True
a
False
b
81. The Renter's Credit may not exceed
$600.
True
a
False
b
82. Local jurisdictions do not have the
authority to offer early payment discounts on taxes paid prior to
the final due date.
True
a
False
b
83. No interest or penalties may be charged
until at least 30 days after the bill for taxes has been mailed to
the taxpayer's address as shown on the tax rolls
True
a
False
b
84. Generally, an employer who is subject
to FUTA is automatically an employer under Maryland law.
True
a
False
b
85. "Wages" does not include
cafeteria plan payments.
True
a
False
b
86. The standard rate is 7.5%.
True
a
False
b
87. Benefits may not be paid to principal
administrators of an educational institution during school vacation
periods.
True
a
False
b
88. Beverages that contain 1% or more of
alcohol by volume are subject to alcoholic beverage tax.
True
a
False
b
89. Motor fuel tax refunds may be obtained
for tax paid on fuel bought by the U.S. government.
True
a
False
b
90. A snowmobile operated on highways and
roadways is exempt from motor vehicle registration.
True
a
False
b
91. A sale subject to the titling tax may
also be subject to sales and use tax.
True
a
False
b
92. Agricultural land transfer tax is imposed
on an instrument of writing that transfers title to agricultural land.
True
a
False
b
93. The Utility Franchise Tax is based
on a company's net receipts.
True
a
False
b
94. The Jobs Creation Credit may be claimed
against the Insurance Gross Premium taxes.
True
a
False
b
95. The maximum hotel rental tax rate in
Maryland is 3%.
True
a
False
b
96. All counties may impose a tax of up
to $250 per year on the use of a mobile home located in their county.
True
a
False
b
97. The rate of the Admissions and Amusement
tax may not exceed 10% of taxable gross receipts from admissions.
True
a
False
b
98. Maryland has no statutory or regulatory
taxpayers' bill of rights.
True
a
False
b
99. Maryland law requires taxpayers to
maintain adequate tax records for five years.
True
a
False
b
100. Effective July 1, 2003, the Comptroller
is no longer allowed to attach a taxpayer's wages to collect any delinquent
tax owed by the taxpayer.
