PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Question
Chapter 18, Problem 2QPD
To determine
Explain whether IRS (Internal Revenue Service) can start audit for GNT’s tax returns all the way back to 2009.
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Students have asked these similar questions
After Bill and Mercedes' tax return was selected for audit, Bill read on the Internet
speculation that filing a paper tax return (instead of filing electronically) and extending a tax
return deadline decrease the chance of IRS audit. Bill has convinced Mercedes that they need
to use these strategies in the future and look for other ways to avoid audit. Questions for
discussion include:
1. What are the timing requirements for filing a tax return and paying taxes owed?
2. Does Bill's action likely violate any IRS regulation?
3. If Bill's action does not violate IRS rules, it is ethical?
Please make sure to respond to other students' discussion answers, especially if they have a
different point of view than yours.
Describe the nature of the evidence the internal revenue agentwill use in the audit of Jones Company’s tax return.
In auditing payroll withholding and payroll tax expense, explainwhy emphasis should normally be on evaluating the adequacy of the payroll tax returnpreparation procedures rather than the payroll tax liability. If the preparation proceduresare inadequate, explain the effect this will have on the remainder of the audit.
Chapter 18 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 18 - Prob. 1QPDCh. 18 - Prob. 2QPDCh. 18 - Prob. 3QPDCh. 18 - Prob. 4QPDCh. 18 - Prob. 5QPDCh. 18 - Prob. 6QPDCh. 18 - Prob. 7QPDCh. 18 - Prob. 8QPDCh. 18 - Prob. 9QPDCh. 18 - Prob. 10QPD
Ch. 18 - Prob. 11QPDCh. 18 - Prob. 12QPDCh. 18 - Prob. 13QPDCh. 18 - Prob. 14QPDCh. 18 - Prob. 1APCh. 18 - Prob. 2APCh. 18 - Prob. 3APCh. 18 - Prob. 4APCh. 18 - Prob. 5APCh. 18 - Prob. 6APCh. 18 - Prob. 7APCh. 18 - Prob. 8APCh. 18 - Prob. 9APCh. 18 - Prob. 10APCh. 18 - Prob. 11APCh. 18 - Prob. 12APCh. 18 - A revenue agent determined that Ms. Owen underpaid...Ch. 18 - Prob. 14APCh. 18 - Prob. 15APCh. 18 - Prob. 16APCh. 18 - Prob. 17APCh. 18 - Prob. 18APCh. 18 - Prob. 19APCh. 18 - Prob. 20APCh. 18 - Prob. 22APCh. 18 - Prob. 8IRPCh. 18 - Prob. 9IRPCh. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 1TPCCh. 18 - Prob. 2TPC
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Similar questions
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- What is a primary responsibility of taxpayers during a tax audit? a) Providing false information to the tax authority b) Cooperating with the tax authority by providing requested documentation c) Refusing to communicate with the tax authority d) Ignoring audit requests and deadlinesarrow_forwardA tax return client was audited for a prior year return and assessed a tax deficiency because a material deduction was disallowed. Nevertheless, the client insists on taking the very same kind of deduction on this year’s return... (a) A CPA absolutely may not prepare or sign the client’s return for this year un-less it conforms to the audit result for the prior year. (b) A CPA may prepare and sign the client’s return for this year claiming a de-duction that previously was disallowed if the CPA determines as a matter of in-dependent professional judgment that the deduction is proper. (c) A CPA may prepare and sign the client’s return for this year claiming a de-duction that previously was disallowed if the CPA receives a formal tax opinion from a law firm or from an unaffiliated CPA affirming that it is more likely than not that the deduction would be sustained on its merits if litigated.arrow_forwardOn October 5, 2016, the Bureau of Internal Revenue (BIR) sent KLM Corp. a Final Assessment Notice(FAN), stating that after its audit pursuant to a Letter of Authority duly issued therefor, KLM Corp. haddeficiency value-added and withholding taxes. Subsequently, a warrant of distraint and/or levy wasissued against KLM Corp. KLM Corp. opposed the actions of the BIR on the ground that it was notaccorded due process because it did not even receive a Preliminary Assessment Notice (PAN) afterthe BIR’s investigation, which the BIR admitted. a) Distinguish a PAN from a FAN.b) Are the deficiency tax assessment and warrant of distraint and/or levy issued against KLMCorp. valid? Explain.arrow_forward
- Audit Procedures for Income Taxes and Deferred Tax Assets/Liabilities: Auditing income taxes and deferred tax assets/liabilities involves verifying the accuracy of a company's tax reporting and assessing the timing and amounts of deferred tax assets and liabilities. Here's a detailed breakdown of the audit procedures: 1. Review of Tax Returns and Financial Statements: Impact: Auditors compare the information reported in the company's tax returns with its financial statements to identify any discrepancies or inconsistencies. Procedure: Auditors examine tax returns, schedules, and supporting documentation to ensure that income tax provisions in the financial statements are consistent with tax filings. 2. Evaluation of Deferred Tax Assets and Liabilities: Impact: Deferred tax assets and liabilities represent future tax consequences of transactions that have already occurred but have not yet been recognized for tax purposes. Procedure: Auditors assess the validity…arrow_forwardThe Taxpayer Advocate Service (TAS) can help taxpayers with what type of assistance? As a first step, rather than dealing with the IRS, when the taxpayer believes there are unusual circumstances involved. When the taxpayer feels the resolution applied by the IRS is unreasonable. If there is a financial difficulty, emergency, or hardship and the IRS needs to move faster than normal. When an audit results in a significant change and the deadline for appeal has passed. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardWhen a CPA knows that a tax client has skimmed cash receipts and not reported the incomein the federal income tax return but signs the return as a CPA who prepared the return, theCPA has violated which of the following AICPA rules of conduct?a. The Confidential Client Information Rule.b. The Integrity and Objectivity Rule.c. The Independence Rule.d. The Accounting Principles Rulearrow_forward
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