Choose the answer with explanation: Question 106) Married couples will normally file jointly. Identify a situation where a married couple may prefer to file separately. A) The spouse with lower income has substantial medical expenses. B) A couple is separated and contemplating divorce. C) One spouse can be held responsible for the entire tax liability. D) All of the above. 107) A taxpayer can receive innocent spouse relief if A) the understated tax is attributable to erroneous items of the other spouse. B) the innocent spouse did not know and had no reason to know that there was an understatement of tax. C) under the circumstances, it would be inequitable to hold the innocent spouse liable for the understated tax. D) All of the above conditions apply. 108) Form 4868, a six-month extension of time to file, allows a taxpayer to A) avoid interest on underpayment of taxes due. B) extend the filing date of the return as well as payment of the tax due. C) extend the filing date of the return but the estimated amount of tax due must still be paid by the original due date of the return. D) extend the filing date only at the discretion of the IRS. 109) Lester, a widower qualifying as a surviving spouse, has $209,000 of salary, five personal and dependency exemptions and itemizes deductions. Lester must use which form to report his taxable income? A) Form 1040ES B) Form 1040EZ C) Form 1040A D) Form 1040