Principles Of Taxation For Business And Investment Planning 2020 Edition
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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Chapter 5, Problem 3AP
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Identify under which step of tax research process the following actions would occur.

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If the audit does not turn out​ favorably:  ​(Select all that​ apply.)     A. Mrs. Hubbard can file an appeal with the auditor by presenting additional materials.   B. Mrs. Hubbard can file an appeal with the​ auditor's manager.   C. Mrs. Hubbard can go to a tax court.   D. Mrs. Hubbard can file a formal appeal with the IRS.
Indicate whether the following statements are "True" or "False" regarding AICPA Statements on Standards for Tax Services. a.   The Statements are enforceable standards of professional practice for AICPA members working in state or Federal tax practice.   b.   In preparing a return, a CPA must verify information furnished by the client or by third parties.   c.   A CPA should make a reasonable effort to obtain from the client, and provide, appropriate answers to all questions on a tax return before signing as preparer.   d.   The CPA should not take a questionable position based on the probabilities that the client's return will not be chosen by the IRS for audit.   e.   A CPA may prepare a tax return using estimates received from a taxpayer if it is impracticable to obtain exact data.
A CPA –    (a)  may use a client’s estimate of dollar amounts in preparing a tax return only if the client provides a sworn affidavit stating that supporting documents are lost.    (b)  generally may use a client’s estimated amounts in preparing a tax return sub-ject to determining that the amounts are reasonable based on all known facts.    (c)  may use her / his own estimate of some dollar amount if the client’s estimate is deemed to be either inadequate or excessive.   (d)  may never under any circumstances put an estimated amount on a client’s tax return and in fact would risk (i) losing her / his state CPA license and/or (ii) criminal sanctions imposed by the IRS for doing so.

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Principles Of Taxation For Business And Investment Planning 2020 Edition

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