Case Incident 2 Amended Sales Tax Return

We noticed a discrepancy in the sales tax wording on the invoices from the Ecova download. We contacted Duke Energy regarding the discrepancy and were informed we can request new invoices from Duke Energy that will have the correct language regarding the sales tax.

* In our opinion, Partial Revenue Recognition approach is most consistent with the actual substance of a sales transaction involving an extended warranty contract. Using partial revenue recognition, the company can recognize partial revenue at the time of sale. We can distinguish between what is earned and what is yet to be earned. At the time of sale, the company recognized a portion of the revenue that they earned on the total sales because the warranty contract is incomplete. It recognizes the rest portion of the sale as deferred revenue and records “over the contract period” (Bruns 3). This method let the sales revenue and liabilities account to

Hoffman, W., Maloney, D., Raabe, W., & Young, J. (2013). Federal Taxation Comprehensive Volume. (36 ed.). Ohio: South-W

We went back and reviewed the questionnaire that you historically send out each tax season. We see some places that we could have addressed more thoroughly.

In order to deduct her moving expenses, she must meet certain conditions outlined in Reg. 1.217-2 (c). Helen meets the first two requirements (relevance to work test and distance test) without any issue. The third requirement has not yet been met yet though. This requirement is a minimum period of employment. Since she is a full-time employee, she must work full-time in this general location for at least 39 weeks during the 12 month period after the move. This does not mean she is not required to remain employed at her current place of work to meet this test. Even though she does not meet this requirement yet, she can deduct these expenses on the current years return or the year the reimbursement is paid to her by her employer. If she recognizes the expenses on this year’s return and does not end up meeting the requirement, she will have to include the deductions she took on this year’s return in next year’s gross income.

On June 1, 2016, exactly three months ago, Marianne and Dory received an audit notice for Wise-Holland’s 2011 tax return because some deductions taken were

I appreciate the opportunity to advise you regarding the tax treatment for your loss of $25,406 in 2015 from your dog breeding activities. I understand that you decided to start breeding purebred terriers to keep yourself busy after your divorce with your husband in January. There are two possible ways to treat the loss under rulings in the Internal Revenue Code. One option is to treat your dog breeding activity as a business and deduct the losses on Schedule C, Profit or Loss from Business, of your individual income tax return. The second option is to treat your dog breeding as an activity not engaged in for profit, which does not allow you to deduct the

inventory using the cost method and did not change the method used during the current

Thank you for coming to our offices and allowing us to review and discus your concerns regarding your tax questions. I have been assigned to reply to your questions and I have listed my recommendations below. After you both have reviewed these recommendations, please contact me so we can go over any additional questions you may have.

f. In December, the 2012 property tax bill for $1,600 was received from the city. The taxes, which have not been recorded, will be paid on February 15, 2013.

Ok. So once you receive the check and the documentation showing the balance is not due, we will cancel that check and have it re-issued in your name. You can forward a copy of the documentation showing it there is nothing due for your taxes to help@quickenloans.com.

The sale did not occur in 2001 and JHH continued to use the specific identification method for its inventory for 2001 through 2007. But later it tried to amend the tax return for the corresponding years to correct an error of using the specific identification method and reverting back to LIFO inventory method, and requested a refund. After JHH received its refund, IRS sent a notice of deficiency for the years covered under amended returns. JHH filed a petition with the Tax Court.

Handout 1 — LOL Draft Income Statement and Excerpt From Tax Footnote as of December 31, 2010

3365990060 Amacher, Rhonda- Client wants to know if we paid their taxes at closing and what happened to the money since the previous lender already paid the taxes.

Sales tax is one of the most conversed topics and in the national spotlight frequently. States have been struggling to gain a hold on internet sales and the related tax liabilities. Sales tax policy is an intriguing subject and the current internet revolution is pushing discussion of sales taxes to the forefront. This has caused a high level of distress held by business leaders, bureaucrats, and politicians in the field of sales tax. The current goal and focus on sales tax policy is that a more rational sales tax compliance environment can be developed.