Chapter 2, Problem 38P

Tax Drill - Types of Audits Complete the following statements regarding the types of audit conducted by the IRS. Taxpayers usually are able to settle routine tax disputes (e.g., queries involving the documentation of deductions) through   with the IRS. However,   are conducted in an office of the IRS. In most instances, the taxpayer is subject to  . A   is conducted by IRS agents at the office or home of the taxpayer or at the office of the taxpayer's representative.

Under what circumstances would the Commissioner-General of Ghana Revenue Authority may, by notice, require a person to file a tax return before the due date for filing of tax returns?

Indicate whether the following statements are "True" or "False" regarding the administrative powers of the IRS. a.   If the taxpayer meets the record-keeping requirement and substantiates income and deductions properly, the IRS bears the burden of proof in establishing a tax deficiency during litigation.   b.   The Code permits the IRS to assess a deficiency and to demand payment for the tax. However, no assessment or effort to collect the tax may be made until 30 days after a statutory notice of a deficiency (a 30-day letter) is issued.   c.   If the taxpayer neglects or refuses to pay the tax after receiving the demand for payment, a lien in favor of the IRS is placed on all property (realty and personalty, tangible and intangible) belonging to the taxpayer.

What special accounts must usually be opened in the general ledger to record payroll tax entries?