Klawz received a 1099-DIV from Nike Corporation for $1,000 and a 1099-INT fromhis Bank of $500. If Klawz's neglects to enter the 1099-DIV on his US Income TaxReturn (Form 1040), which audit program likely adjusted Klawz's tax return?Document perfection.None of the choices are correct.Deduction Detective.Information matching.DIF system.

Information matching.Explanation: Document perfection: This audit program focuses on ensuring that…

Answered: Klawz received a 1099-DIV from Nike…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rev. Rul. 2004-32, 2004-12 IRB 621, 3/1/2004 is about a.Possible criminal penalties for raising frivolous claims for expenses related to fictitious home-based businesses. b.Possible criminal penalties for claiming entitlement to a tax credit based on ethnic or racial classifications. c.Possible criminal penalties for taxpayers or preparers who claim that they have been “removed” or “redeemed” from the federal tax system. d.None of the above
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1
Tax Drill - Types of Audits Complete the following statements regarding the types of audit conducted by the IRS. Taxpayers usually are able to settle routine tax disputes (e.g., queries involving the documentation of deductions) through with the IRS. However, are conducted in an office of the IRS. In most instances, the taxpayer is subject to . A is conducted by IRS agents at the office or home of the taxpayer or at the office of the taxpayer's representative.
Determine the effect of the following item on the reconciliation of Net Income for Accounting Purposes to minimum Net Income for Tax Purposes (NIFTP). Additions in reconciliation should be entered in the box as a positive number (write only numbers, do not write "+" sign). Deductions in reconciliation should be entered in the box as a negative number. If the item would have no effect on the reconciliation, enter the number 0 (zero) in the box. Business Meals and Entertainment in the amount of $7,000 were deducted in the calculation of Net Income for Accounting Purposes. Your Answer:
Subject: acounting
Which of the following statements are TRUE? (i) Interest expense incurred on loan to purchase motor cars for salesmen’s use is deductible as the salesmen use the cars only for meetings with customers and suppliers.(ii) Expenses which qualify for special deduction under Section 14Q relates to capital expenditure which do not qualify for capital allowances claim.(iii) Companies can claim deduction of computer donations to institutions of public character up to 20/2/2017.
Chris Green, CPA, is auditing Rayne Co.’s 2019 financial statements. For the year ended December 31, 2019, Rayne is applying GAAP for income taxes. Rayne’s controller, Dunn, has prepared a schedule of all differences between financial statement and income tax return income. Dunn believes that as a result of pending legislation, the enacted tax rate at December 31, 2019, will be increased for 2020. Dunn is uncertain which differences to include and which rates to apply in computing deferred taxes. Dunn has requested an overview of GAAP from Green. Required: Prepare a brief memo to Dunn from Green that identifies the objectives of accounting for income taxes, defines temporary differences, explains how to measure deferred tax assets and liabilities, and explains how to measure deferred income tax expense or benefit.
Mr. Stanhope has an MBA degree from Stanford University and has successfully operated a business for 18 years. The revenue agent who audited Mr. Stanhope's Form 1040 discovered a glaring error resulting in a $16,200 underpayment of tax. When questioned by the revenue agent about the error, Mr. Stanhope just shrugged and offered no logical explanation. Required: a. If the error resulted from Mr. Stanhope's blatant disregard of a tax rule, compute the penalty for negligence. b. Is Mr. Stanhope's level of education and business experience likely to be a factor considered by the revenue agent in determining negligence? Complete this question by entering your answers in the tabs below. Required A Required B X Answer is complete but not entirely correct. If the error resulted from Mr. Stanhope's blatant disregard of a tax rule, compute the penalty for negligence. Accuracy-related penalty $ 3,440 X Required A Required B >
The official document issued by the CIR or his authorized representative authorizing the examination of taxpayer records is called: a.Authorization letter b.Letter Notice c.Letter of Authority d.Mission Order Which is NOT a power of the Commissioner? a.The power to abandon previous rulings b.The power to enter into a compromise c.The power to issue revenue regulations d.The power to issue rulings of first impression
76) Steve, an independent contractor, performed roofing work and was paid for his services with digital assets. How does Steve report the value of his digital assets payment when filing his income tax return? OA) Digital assets do not need to be reported to the IRS. OB) The value of the digital assets in U.S. dollars at the time received as compensation. OC) The value of the digital assets in U.S. dollars at the end of the tax year. OD) The highest value of the digital asset achieved during the tax year.
The following information came from an IRS audit of a sole proprietor named John Doe. Using the “Cash T” approach, compute the probable over/understatement of income as computed by the IRS agent. Schedule C gross receipts ........................$112,610 Cost of goods sold ...................................... 65,414 Schedule C total cash expenses ................. 30,023 Rental income .........................................…. 5,318 Rental expenses (all cash) .....................….. 6,330 Beginning bank account balance ................. 7,873 Ending bank account balance ..................... 17,265 Insurance proceeds received (taxable) ……. 4,300 Principal payments on rental property loan… 2,894 Personal living expenses ............................. 26,550 Personal auto expenses ................................ 9,788 Social security benefits received …………….. 6,500 Gifts of cash received from relatives ……………

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