Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 1, Problem 37DQ
To determine
Identify whether Person A’s conclusion is agreeable. Explain.
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Matthew Bell, a salesman, couldn’t have been expected to know that CPAs are explicitly prohibited from charging contingent fees for tax return preparation.*** But Pam Williams apparently is not a CPA, so that was the deal that she and Mr. Bell struck. Does it seem fair to you that the Tax Court came down so hard on him for his reliance on Ms. Williams? Discuss.
*** In the tax return preparation context, a contingent fee is one that is based on the amount of tax refund to be received and, as in Bell, is stated as a fixed (or sliding-scale) percentage of that refund. Contingent fees are prohibited for the simple and obvious reason that, if allowed, they would encourage falsification in order to produce or increase the amount of a refund. Contingent fees are, however, allowed in audit defense work and in certain other contexts
The Taxpayer Advocate Service (TAS) can help taxpayers with what type of assistance? As a first step, rather than dealing with the IRS, when the taxpayer believes there are unusual circumstances involved. When the taxpayer feels the resolution applied by the IRS is unreasonable. If there is a financial difficulty, emergency, or hardship and the IRS needs to move faster than normal. When an audit results in a significant change and the deadline for appeal has passed.
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Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
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You are assisting a client with a transaction that produces a most favorable tax result. The client told
you the outcome is dependent on one court case. What should you do?
a. Nothing. Your due diligence obligations allow you to rely in good faith on information furnished to
you by the client; you are permitted to rely on the client's judgment.
6. Check with the client's auditor to ensure the numbers are valid; then you can recalculate intended
tax benefits.
c. Help the client by getting a head start on the tax return presentation of the transaction; the better the
presentation, the less likely it will be audited by the IRS.
d. Analyze the case to make sure the holding has not been reversed, the client's facts are similar to
those described in the case, and the law cited in the case is still valid.
Chapter 1 Solutions
Individual Income Taxes
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - The Sixteenth Amendment to the U.S. Constitution...Ch. 1 - Prob. 4DQCh. 1 - How does the pay-as-you-go procedure apply to wage...Ch. 1 - Jane, a tax practitioner, has reviewed the law on...Ch. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQ
Ch. 1 - Sophia lives several blocks from her parents in...Ch. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Elijah and Anastasia are husband and wife who have...Ch. 1 - What is the difference between the Federal income...Ch. 1 - As to those states that impose an income tax,...Ch. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Contrast FICA and FUTA as to the following: a....Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 34DQCh. 1 - Serena operates a gift shop. To reduce costs of...Ch. 1 - Prob. 36DQCh. 1 - Prob. 37DQCh. 1 - Prob. 38DQCh. 1 - Prob. 39DQCh. 1 - Prob. 40DQCh. 1 - Prob. 41DQCh. 1 - Prob. 42DQCh. 1 - Prob. 43DQCh. 1 - Prob. 44DQCh. 1 - Prob. 45DQCh. 1 - In terms of tax policy, what do the following...Ch. 1 - Prob. 47DQCh. 1 - Prob. 48DQCh. 1 - Prob. 49DQCh. 1 - Prob. 50DQCh. 1 - Using information from this chapter as well as...Ch. 1 - Prob. 3RPCh. 1 - Prob. 4RP
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- The government called uponitsresidents and citizens to pay taxes to the government so that thegovernment can carry outits functions. Mr. Juan refuses to pay the taxes. According to him, he does not care whether the government shall continue to exist or not. Is the contention of Mr. Juan justified?arrow_forwardWhich of the following instances is not a ground for the BIR Commissioner to inquire or examine the bank deposits of taxpayers? when the taxpayer filed an application for compromise of his tax liability when the taxpayer fails the lifestyle check test and shows unexplained wealth the taxpayers waives his right in writing the confidentiality of the bank deposits to determine the gross estate of a decedentarrow_forwardA tax accountant is told by his superior to take a position on a tax matter that is not supportable by the facts in order to make the client happy. This is a common practice in the firm and the likelihood of the IRS questioning it is remote. Would you go along with your supervisor?arrow_forward
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