Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 12, Problem 4MCQ
To determine
Introduction: The Internal Revenue Service (IRS) has a wide range of functions and responsibilities such as look after of administration of federal taxes, and to perform duties like estimating, determining, and collecting taxes in the form of revenue to the government, it also performs tax return audits and imposes penal provisions. It is the office within the revenue department. The task of the department is to provide the taxpayers with quality service by assisting them in proving knowledge content so the taxpayers understand their tax responsibility and pay taxes timely. It is important in maintaining and establishing tax laws.
To choose: The way in which returns are selected for audit purposes.
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Which of the following plays an important role in all field audits?
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Chapter 12 Solutions
Income Tax Fundamentals 2020
Ch. 12 - Which of the following is a responsibility of a...Ch. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQ
Ch. 12 - Prob. 11MCQCh. 12 - Prob. 12MCQCh. 12 - Which of the following have privileged...Ch. 12 - Prob. 14MCQCh. 12 - Prob. 15MCQCh. 12 - Prob. 16MCQCh. 12 - Prob. 17MCQCh. 12 - Taxpayers have the right to have an IRS...Ch. 12 - If a U.S. Tax Court agrees with the taxpayer on...Ch. 12 - If the IRS owes a taxpayer a refund, the law...Ch. 12 - Prob. 21MCQCh. 12 - Melodie's taxable income is $39,000 and she pays...Ch. 12 - Jim has a house payment of $2,000 per month of...Ch. 12 - Indicate which of the following statements are...Ch. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - In the 2019 tax year, Michelle paid the following...Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12P
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- Describe the nature of the evidence the internal revenue agentwill use in the audit of Jones Company’s tax return.arrow_forwardThe main portion of an independent auditor’s work in expressing an opinion on financial statements consists of a. Obtaining and examining sufficient appropriate evidence b. Examining compliance with tax laws c. Studying and evaluating internal control d. Comparing client’s total accountabilities with its actual assets as of the end of the reporting periodarrow_forwardcompliance requirements in terms of documenting transactions and reporting .you should list the elements required in a tax invoice which a computerized accounting system will quickly and accurately procedurearrow_forward
- The following are types of audits, except: Group of answer choices: Tax Compliance Audit Pro Forma Financial Statement Audit Management Audit Operational Auditarrow_forwardAside from professional audits of income tax returns, who does the separate non-tax audit program audit?arrow_forwardWhich of the following accounts would most likely be audited in connection with a related balance-sheet account?a. Property Tax Expense.b. Payroll Expense.c. Research and Development.d. Legal Expense.arrow_forward
- Which of the following engagement is covered by the Framework for Assurance Engagements?* Consulting engagements. Preparation of tax returns External financial statements audit Internal financial statements auditarrow_forwardAudit 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_forwardAs an auditor, how would you audit the following Internal Control Revenuearrow_forward
- What are the types of evidence would you normally look during the performance of your Financial Statement audit?arrow_forwardWhich of the following is not an assurance engagement?* Tax services Financial statement audit Information reliability services Examination of internal controlarrow_forwardExplain who needs to pay estimated taxes, when to file or amend your return, and how to handle an audit.arrow_forward
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