Chapter 1, Problem 45DQ

Jane, a tax practitioner, has reviewed the law on how State Xs income tax applies to a clients web-based consulting business but is unable to reach a conclusion for which she has a high level of confidence. Assuming that Jane is a knowledgeable and experienced tax professional, which Guiding Principles of Good Tax Policy might not be followed by State X?

The Bingabong CPA firm is swamped with work and is considering doing some outsourcing of tax work to a third-party service provider (TSP). Which of the following is an accurate statement regarding its responsibilities? Group of answer choices a. Outsourcing work to TSPs can threaten independence, but not objectivity or integrity. b. Outsourcing work to TSPs that provide only administrative support will likely not threaten objectivity and/or integrity. c. If Bingabong uses TSPs to perform substantive services and those TSPs are reputable, it need not inform clients before sharing confidential client information with the TSPs. d. If a client objects to Bingabong outsourcing services, Bingabong should investigate whether the client has legitimate grounds before proceeding.

Individual tax filing requirements and circumstances can change, so it is important to be familiar with the research tools available to you as a tax practitioner. In this discussion, you will consider research resources available for tax preparers and how they can be used in the field. What are the available commercial and noncommercial tax resources that you could utilize as a tax practitioner? Refer to Section 2-2A through 2-2C (specifically, exhibit 2-7) in your textbook for options. Which commercial resource do you think is the most beneficial to a tax practitioner? (Note that you will not be able to access the commercial resources but can find their features on their website.) Which noncommercial resource do you think is the most beneficial to a tax practitioner? How might you use the tax research process (refer to Section 2-3 in your textbook) for utilizing tax resources in preparing individual tax returns. (Think about ways you could use this process to support you in…