Taxpayer X and Taxpayer Y each agree to pay their tax preparer, Randy, from the refund they receive from the IRS. Upon presenting their refund checks to Randy, Randy pays them the difference in cash. Randy then endorses both checks and deposits them into his account. Randy has a Power of Attorney for Taxpayer X, but no Power of Attorney for Taxpayer Y. Randy can negotiate and endorse the refund check of Taxpayer X, but not that of Taxpayer YRandy can negotiate and endorse the refund check of Taxpayer Y, but not that of Taxpayer XRandy cannot negotiate or endorse either refundcheckRandy can negotiate and endorse both refund checksNEXT

Quince owns a used-car lot where Ray works as a salesperson. Quince tells Ray not to make any warranties for the cars. To make a sale to Sylvia, however, Ray adds a 50,000-mile warranty. Later, Sylvia sues Quince for breach of warranty. Quince may hold Ray liable for any damages he must pay to Sylvia under which remedy:   a. indemnification   b. avoidance   c. constructive trust   d. accounting

Jamal, who lives in a common law state, would like to place his new bride on the deed to a residence that is currently in his own name. His goals regarding this residence and the transfer are: He does not want the transfer to cause him to use any of his gift tax applicable credit amount. He wants to be able to use the annual exclusion for the transfer. He wants the survivor of himself and his wife to receive title to the deceased spouse's interest in the residence. He does not want his wife to be able to convey her interest in the residence without his consent. He does not want more than 50% of the fair market value of the house to be included in his gross estate if he is the first to die. On the death of the first spouse, he does not want the residence to be subject to a probate proceeding. What is the most appropriate way for Jamal to title the residence when he makes the transfer? A) Tenants by the entirety     B) Tenants in common with equal interests     C) Jamal as the…

Ahmed does not have enough cash on hand to pay his taxes. He was excited to hear that he can request an extension to file his tax return. Does this solve his problem? What are the ramifications if he doesn’t pay his tax liability by April 15?

Sebastian and Sunny are married. They are currently contemplating filing as married filing separately. Under current law, spouses filing separately must A) use the standard deduction if the other spouse uses the itemized deductions or vice versa. B) both use standard deduction. C) both use itemized deductions. D) either both use itemized deductions, or both use standard deduction.

Enzo is preparing a client's return. The taxpayer is claiming the Earned Income Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and the American Opportunity Tax Credit (AOTC). Which of the following best describes the actions Enzo must take to substantiate the taxpayer's eligibility for the credits?

(Federal Taxation, Individual Income Taxes) Janice Morgan, age 24, is single and has no dependents.  She is a freelance writer.  In January 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135.  She called her business Writers Anonymous.  Janice is a cash basis taxpayer.  She lives at 132 Stone Avenue, Pleasant Hill, NM 88135.  Her Social Security number is 123-45-6782.  Janice's parents continue to provide health insurance for her under their policy.  Janice did not engage in any virtual currency transactions during the year and wants to contribute to the Presidential Election Campaign Fund.    During 2019, Janice reported the following income and expense items connected with her business. Income from sale of articles                                                    $85,000 Rent                                                                                                16,500 Utilities…

John Taylor, a tax consultant, charges his clients a fee based on the percentage of the tax he saves a client. John received a payment from a client, but he realised that Angela didn’t declare income. Therefore, the income tax return that John’s prepared understated income tax liability.Taking into consideration the Accounting Professional Code of Conduct explain the Tax Penalties and actions John should take following his discovery.

Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. During 2021, Cassandra Albright, who is single, worked part-time at a doctor's office and received a W-2. She also had a cash- basis consulting practice that had the following income and expenses: Revenue Laptop computer purchased 4/23/21 (§ 179 elected) Travel: 2,500 miles for business, 13,000 personal Supplies Cell phone charge $ 53,000 3,300 500 960 Cassandra (SSN 412-34-5670) resides at 1400 Medical Street, Apartment 3A, Lowland, CA 92273. Her W-2 shows the following: Wages Federal withholding Social security wages Social security withholding Medicare withholding State withholding Other income: $ 49,000 5,200 49,000 3,038 711 2,265 1099-INT Old Bank 2,200 1099-DIV Bake Company, Incorporated-Ordinary dividends…

Craig commits fraud on his tax return. It is found that he was $40,000 deficient in his tax because of the fraud. What would his penalty be? Please show all calculations to demonstrate how you arrived at your answer.   In your response, please make sure to take all of the facts above into consideration. You can refer back to the text, lecture videos, and the IRS website.