Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 11QPD
a.
To determine
Identify whether Person D is liable for payment of $8,900 tax deficiency along with interest.
b.
To determine
Describe whether IRS could levy a negligence penalty on Mr. D.
c.
To determine
Describe whether the local attorney Mr. R could be levied penalty by IRS due to his error committed in preparing Mr. D’s income tax return.
d.
To determine
Describe whether the local attorney Mr. R could be levied penalty by IRS due to his error committed in preparing his brother-in-law Mr. D’s income tax return.
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Students have asked these similar questions
Max and Annie are roommates sharing an apartment. Although they know each other well, they have respect for each other’s privacy. Thus, when Max’s Form 1040 was audited by the IRS, he made no mention of the audit to Annie. When Annie was clearing the answering machine that they shared, she heard the following message: “Max, this is Richard, the IRS auditor. My figures show that you owe the government $10,000 in taxes and another $4,500 in penalties and interest.” When Annie brought up the message during dinner conversation that night, Max was furious. How could the IRS be so careless as to broadcast this news to a stranger? Did not he have any privacy and confidentiality rights? Max calls you to determine whether he might have a case against the IRS or Richard, the agent. Prepare a file memo assessing Max’s position.
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.
Marvin sells computer equipment and is objecting to an assessment received from SARS. During the current year of
assessment (28 February), Marvin donated second-hand office equipment to a local radio station. In return, the radio station
agreed to broadcast 'specials' that Marvin had on certain computer products for the week. SARS taxed the value of the office
equipment donated to the radio station and stated that the donation fell within the definition of gross income. Marvin believes
otherwise.
YOU ARE REQUIRED:
Discuss all the gross income requirements that Marvin should bear in mind when preparing the objection of the assessment.
(Assume that Marvin is a resident of the Republic.)
Chapter 18 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
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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