MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
20th Edition
ISBN: 9781259969614
Author: SPILKER
Publisher: MCG
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Chapter 4, Problem 51P
a.
To determine
Determine the tax amount that IRS wants Person J to pay for Person D’s year 2 joint return.
b.
To determine
Determine the amount of tax that IRS wants Person J to pay for Person C’s year 3 separate tax return.
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Mr. and Mrs. Schrute filed a joint tax return last year. The couple divorced this year. The IRS audited their last year’s return and determined that the Schrute’s had underpaid their tax by $38,200. Which of the following statements is true?
a.
The IRS can assess either Mr. Schrute or Mrs. Schrute for the entire deficiency
b.
The IRS must assess whichever spouse actually prepared the return for the entire deficiency
c.
Because the couple is divorced, the IRS must assess Mr. Schrute with a $19,100 deficiency and Mrs. Schrute with a $19,100 deficiency
d.
Because the couple is divorced, the IRS must apportion the deficiency between Mr. and Mrs. Schrute based on their relative contribution to taxable income
John and Marsha are married and filed a joint return for the past year. During that year, Marsha was employed as an assistant cashier at a local bank and, as such, was able to embezzle $75,000, none of which was reported on their joint return. Before the defalcation was discovered, Marsha disappeared and has not been seen or heard from since. List as many tax research issues as you can to determine the tax consequences of this crime. Do not attempt to answer any of the questions you raise. Simply identify the research issues.
1
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[The following information applies to the questions displayed below.]
Jasper and Crewella Dahvill were married in year O. They filed joint tax returns in years 1 and 2. In year 3, their relationship
was strained and Jasper insisted on filing a separate tax return. In year 4, the couple divorced. Both Jasper and Crewella
filed single tax returns in year 4. In year 5, the IRS audited the couple's joint year 2 tax return and each spouse's separate
year 3 tax returns. The IRS determined that the year 2 joint return and Crewella's separate year 3 tax return understated
Crewella's self-employment income, causing the joint return year 2 tax liability to be understated by $9,000 and Crewella's
year 3 separate return tax liability to be understated by $6,950. The IRS also assessed penalties and interest on both of
these tax returns. Try as it might, the IRS has not been able to locate Crewella, but they have been able to find Jasper.
Note: Leave no answer blank. Enter O…
Chapter 4 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
Ch. 4 - How are realized income, gross income, and taxable...Ch. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Why should a taxpayer be interested in the...Ch. 4 - Is it easier to describe what a capital asset is...Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - How do taxpayers determine whether they should...
Ch. 4 - Where does the qualified business income (QBI)...Ch. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - How do two taxpayers determine who has priority to...Ch. 4 - Prob. 22DQCh. 4 - Prob. 23DQCh. 4 - Prob. 24DQCh. 4 - Prob. 25DQCh. 4 - For tax purposes, why is the married filing...Ch. 4 - Prob. 27DQCh. 4 - Prob. 28PCh. 4 - David and Lilly Fernandez have determined their...Ch. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - The Samsons are trying to determine whether they...Ch. 4 - Prob. 36PCh. 4 - Francines mother Donna and her father Darren...Ch. 4 - Jamel and Jennifer have been married 30 years and...Ch. 4 - Dean Kastner is 78 years old and lives by himself...Ch. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Elroy, who is single, has taken over the care of...Ch. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Marc and Michelle are married and earned salaries...Ch. 4 - Demarco and Janine Jackson have been married for...Ch. 4 - Prob. 56CPCh. 4 - Prob. 57CP
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