For the Following Taxpayers Indicate Whether the Taxpayer Should File

question 26

Essay

For the following taxpayers indicate whether the taxpayer should file a tax return and why.
a. Robert earned $50,000 this year as a staff accountant. His estimated tax liability is $4,500, and he expects to receive a $500 tax refund.
b. Amy earned $4,000 this year working part-time. She will have no federal tax liability and has not made any federal tax payments.
c. Ty earned $2,500 this summer and had $200 of federal taxes withheld from his paycheck. He will have no federal tax liability this year.
d. Startup Corporation had a $50,000 loss this year.
e. The Walker Family Trust earned $500 of income this year.

Grasp the implications of exculpatory clauses and the conditions under which they may not protect a principal.

Understand the concept of joint and several liability in relation to principal and agent torts.

Understand the concept and limitations of an agent's authority in transactions.

Identify circumstances under which a principal is directly liable in tort cases.