Give the Circular 230 position concerning each of the following situations sometimes encountered in the tax profession. Taking an aggressive pro-taxpayer position on a tax return. Not having a quality review process for a return completed by a partner of the tax firm. Purposely delaying compliance with a document request received from the IRS. Not keeping up with changes in the tax law. Charging $4,500 to complete a simple Form 1040 with no supporting schedules. When representing a taxpayer in a Federal income tax audit, charging a fee equal to one-third of the reduction of the tax proposed by the IRS agent. Representing both the husband and wife when negotiating tax matters pertinent to their divorce. Advertising on the Web for new tax clients and including Se habla español in the text of the ads.

Q: Haley, a CA CPA, is a manager with the firm Avis & Dorris, CPAs. Haley is involved primarily with…

A: The AICPA (American Institute of Certified Public Accountants) is a professional organization for…

Q: Need Help with this Question

A: Step 1: Lisa, a CPA, feels that she cannot act as an aggressive advocate for tax clients in today's…

Q: b. Oscar filed his tax return and paid his $3,900 tax liability seven months late. Late filing and…

A: The late filing charges is applicable over the tax liability which has not been paid on time.Late…

Q: Which is an incorrect statement regarding taxes? *       a. Taxes are necessary for the continued…

A: Taxes are the compulsory fees or financial charge imposed by the government on the taxpayers.

Q: Distinguish between tax avoidance and tax evasion.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Indicate whether the following statements are "True" or "False" regarding letter rulings. a.…

A: Letter Rulings Letter rulings does not have the force and effect of law, but they provide guidance…

Q: The official document issued by the CIR or his authorized representative authorizing the examination…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.