please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly H&R Block believes the proportion of tax returns submitted to the IRS witherrors has increased over the years. So, an auditor for H&R Block randomlyselected a sample of 320 tax returns submitted to the IRS from tax year 1995and 180 tax returns submitted to the IRS from tax year 2005. He classified thereturns as "Error" or "No Error" and recorded his findings in Excel. Can H&RBlock prove that the difference in the proportion of tax returns submitted to theIRS with errors has decreased over this 10-year period at a-0.05? State thehypothesis in terms of 2005-1995. Use the correct excel output above toanswer the following question.For the 80% confidence interval for p2005 - P1995. find the upper endpoint.-0.054 (with margin: 0)

Step 1:Calculate the 8© confidence interval for the difference in proportion (P2005-P1995)Where…

Answered: H&R Block believes the proportion of…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 2P

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After Bill and Mercedes' tax return was selected for audit, Bill read on the Internet speculation that filing a paper tax return (instead of filing electronically) and extending a tax return deadline decrease the chance of IRS audit. Bill has convinced Mercedes that they need to use these strategies in the future and look for other ways to avoid audit. Questions for discussion include: 1. What are the timing requirements for filing a tax return and paying taxes owed? 2. Does Bill's action likely violate any IRS regulation? 3. If Bill's action does not violate IRS rules, it is ethical? Please make sure to respond to other students' discussion answers, especially if they have a different point of view than yours.
Drag and drop the best response into the blank box. Shelley Bowman, CPA, obtained her designation in 2000. Since that time, she has built up a significant tax practice. In late 2021, a new client approached Shelley and asked her to perform an audit engagement. Believing this could lead to a substantial amount of tax work in the future, Shelley agreed, even though she had never completed an audit, nor taken any assurance courses since 1980. Violation of Competence No violation of the Rules of Professional Conduct Violation of Independence - self-interest Violation of the Charter of Conduct Violation of Independence - familiarity Violation of Independence - self review
CPAs understand – far better than most clients do, in fact – that the IRS real-ly audits very few tax returns, so the odds of any particular return being selected for audit are (abysmally) low. According to SSTS No. 1, of what relevance, if any, is that knowledge as to what kind of tax return-related advice a CPA should give a client?
Performance standards: Accomplish the BIR (Bureau of Internal Revenue) forms MELCS: Explain the procedure in the computation of gross taxable income and tax due. Mr. Sabado need to pay his tax. You are an agent hired by Mr. Sabado to compute his taxable income and tax due. The BIR agent will check and evaluate based on accuracy of the information prepared. Instructions: From the given information below compute the total taxable income and total income tax due on each scenario. Mr. Sabado, Production Manager of M.A.R Corp., earned annual compensation in 2020 of P 2,333,000, exclusive the 13h month and other benefits in the amount of P250,000 but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P3,555,000. His cost of sales and operating expenses are P1,500,000 and 800,000, respectively, and with non-operating income of P250,000. а. Mr. Sabado signified his intention to be taxed at 8% income tax rate on…
Assume that you are a Tax Auditor with a City of Los Angeles responsible for reviewing accounting of businesses and organizations to determine the accuracy of self assessed tax payments to the City of Los Angeles. Specifically, you have been tasked to Audit ABC Auto Body Repair Shop. As part of the audit, you found that ABC Auto Body Repair Shop submitted a handwritten self prepared Total Sales statement along with a City of Los Angeles Business Tax Renewal form. You Identify that the handwritten, self prepared Total Sales Statement matches the Tax Renewal form. However, this is the only documentation that the company has provided to you. Therefore, it is your responsibility to ensure the accuracy of both forms, and to notify ABC Auto Body Repair Shop of the steps required to remediate the situation.
The senior auditor of Probiz Ltd was in the process of reviewing the board minutes of Raymars Ltd as the auditor you are concerned about the possibility of contingent liabilities resulting from income tax disputes. Discuss the procedures you could use for an extensive investigation in this area.
Describe the nature of the evidence the internal revenue agentwill use in the audit of Jones Company’s tax return.
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.
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.
In verifying accounts payable, it is common to restrict the auditsample to a small portion of the population items, whereas in auditing accrued property taxes,it is common to verify all transactions for the year. Explain the reason for the difference.
Subject: acounting
The revenue agent who audited Ms. Hsui's Form 1040 discovered a $15,250 deduction that wasn't allowed by the tax law. The improper deduction reduced Ms. Hsui's tax by $5,033. The total tax deficiency for the year under audit was $6,490. Required: a. Compute the maximum penalty if the agent concludes that the improper deduction was due to Ms. Hsui's negligence in preparing the tax return. b. Compute the maximum penalty if the agent concludes that the improper deduction represented Ms. Hsui's deliberate attempt to cheat the government by underpaying tax. Complete this question by entering your answers in the tabs below. Required A Required B Compute the maximum penalty if the agent concludes that the improper deduction was due to Ms. Hsui's negligence in preparing the tax return. Note: Round your answer to the nearest whole dollar amount.

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