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
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 1QPD
Why is tax research necessary? In other words, why is it not possible for experienced tax professionals to answer all tax questions without performing tax research?
Expert Solution & Answer
To determine
Explain the reason for considering tax research necessary and also provide the reason for experienced professional to carry out tax research before answering any tax questions.
Explanation of Solution
Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a civilized society.
Tax law is vast and complex even for the experienced tax professionals to answer all the tax based questions. In addition, the tax law changes over the time period frequently due “to legislative changes, issue of new regulations and rulings and new judicial decisions”. Time to time research on tax is necessary for a tax professional to ensure the “complete, accurate, and up-to-date answer to most tax questions”.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Do the tax agent need to have a professional scepticism? Or just professional judgement is enough
Distinguish between tax avoidance and tax evasion.
What are the ethical responsibilities of the tax practitioner in dealing with tax avoidance?
What are the ethical responsibilities of the tax practitioner in dealing with tax evasion?
what is mean by Tax evasion and what reasons the people do this?
Chapter 5 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 5 - Why is tax research necessary? In other words, why...Ch. 5 - Prob. 2QPDCh. 5 - Explain the difference between a tax issue and a...Ch. 5 - Explain the difference between primary and...Ch. 5 - Discuss why and how a researcher might use...Ch. 5 - Prob. 6QPDCh. 5 - Prob. 7QPDCh. 5 - Prob. 8QPDCh. 5 - Explain why, in the course of tax research, it may...Ch. 5 - Prob. 10QPD
Ch. 5 - Prob. 1APCh. 5 - Prob. 2APCh. 5 - Prob. 3APCh. 5 - Prob. 4APCh. 5 - Indicate whether each of the following statements...Ch. 5 - Prob. 6APCh. 5 - Indicate whether each of the following items is...Ch. 5 - Prob. 8APCh. 5 - Prob. 9APCh. 5 - Prob. 10APCh. 5 - Which of the following statements regarding the...Ch. 5 - Which of the following statements regarding...Ch. 5 - Prob. 13APCh. 5 - In researching the taxability of noncash...Ch. 5 - Prob. 2IRPCh. 5 - Marvin is researching the tax rules related to...Ch. 5 - Prob. 4IRPCh. 5 - John is a dentist. His neighbor Wade is a...Ch. 5 - Prob. 6IRPCh. 5 - Prob. 7IRPCh. 5 - Natalie appeared on a game show last year and won...Ch. 5 - Prob. 1RPCh. 5 - Prob. 2RPCh. 5 - Prob. 3RPCh. 5 - Prob. 4RPCh. 5 - Find and provide a citation for the IRC section...Ch. 5 - Prob. 6RPCh. 5 - Find Rev. Rul. 72-542, 1972-2 C.B. 37, and answer...Ch. 5 - Find a 2006 10th Circuit Court of Appeals decision...Ch. 5 - Prob. 9RPCh. 5 - Prob. 10RPCh. 5 - Prob. 11RPCh. 5 - Prob. 12RPCh. 5 - Prob. 13RPCh. 5 - Prob. 14RPCh. 5 - In researching a tax issue, you locate the case...Ch. 5 - Prob. 16RPCh. 5 - Find Revenue Ruling 83-163, 1983-2 C.B. 26, and...Ch. 5 - Prob. 18RPCh. 5 - Prob. 19RPCh. 5 - Find the IRS website and locate the following...Ch. 5 - Prob. 1TPCCh. 5 - Prob. 2TPCCh. 5 - Lucille is an avid boater living near Gotham City....
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Is it acceptable or unacceptable for government tax enforcers to interact with tax accounting professionals?arrow_forwardRegarding taxpayers having a tough time of volume of tax regulations. What does the concept "substance over form" mean? Are there any examples?arrow_forwardWhat do you know about tax evasion, tax avoidance, and tax exemption? Please elaborate youranswer and give example of these activities.arrow_forward
- Is it appropriate or inappropriate for government tax enforcement officials to socialize with tax accounting professionals?arrow_forwardWhat is meant by two terms, ‘tax evasion’ and ‘tax avoidance’? Give your answer with examples of each.arrow_forwardWhich of the following is a correct statement? O Tax avoidance includes failure to pay tax on unreported income from legal sources The IRS estimates that more income tax is lost from evasion involving illegal activities than from unreported legal activities, O Tax avoidance is legal O Tax evasion includes the application of legal loophole to reduce tax liabilityarrow_forward
- Tax experts believes that tax planning tools puts the control of when to pay in the hands of taxpayers which makes tax cost minimal. Explain the above statement in terms of income tax planning maxims.arrow_forwardWhy are tax havens controversial?arrow_forwardTo assess the tax repercussions, it is crucial to comprehend the type of perks that a firm provides to its employees. True Falsearrow_forward
- The Tax Administration has the right to refuse to provide evidence of the source (s) of income used for a best judgement assessment if requested by the Tax Appeal authority. Is the statment True or False?arrow_forwardWhat work do tax accounting professionals perform in addition to preparing tax returns?arrow_forwardWhat are the specific requirements of paid tax return preparers? In other words, what must they obtain from the IRS in order to charge money for tax preparation? What is the statute of limitations for income tax returns? Are there any exceptions to the general rule?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
How to (Legally) Never Pay Taxes Again; Author: Next Level Life;https://www.youtube.com/watch?v=q63F1pBrUHA;License: Standard Youtube License