Questions from Federal Taxation

Q: Your client wants to know whether she must file any documents for

Your client wants to know whether she must file any documents for an automatic extension to file her tax return. What do you tell her?

Q: The IRS notifies Tom that it will audit his current year return

The IRS notifies Tom that it will audit his current year return for an interest deduction. The IRS audited Tom’s return two years ago for a charitable contribution deduction. The IRS, however, did not...

Q: Provide the following information relating to both individual and corporate taxpayers having

Provide the following information relating to both individual and corporate taxpayers having a calendar year: a. Due date for an income tax return assuming the taxpayer requests no extension. b. Due...

Q: In April of the current year, Stan does not have sufficient

In April of the current year, Stan does not have sufficient assets to pay his tax liability for the previous year. However, he expects to pay the tax by August of the current year. He wonders if he sh...

Q: A trust owns an asset on which depreciation is claimed. The

A trust owns an asset on which depreciation is claimed. The trust distributes all of its income to its sole income beneficiary. Whose taxable income is reduced by the depreciation?

Q: The IRS audited Tony’s return, and Tony agreed to pay additional

The IRS audited Tony’s return, and Tony agreed to pay additional taxes plus the negligence penalty. Is this penalty necessarily imposed on the total additional taxes that Tony owes? Explain.

Q: Distinguish between the burdens of proof the government must meet to prove

Distinguish between the burdens of proof the government must meet to prove civil and criminal fraud.

Q: Is the tax return preparer limited to the person who signs the

Is the tax return preparer limited to the person who signs the return? Explain.

Q: According to Treasury Department Circular 230, what standard should a CPA

According to Treasury Department Circular 230, what standard should a CPA meet to properly take a position on a tax return?

Q: Describe how the IRS verifies tax returns at its service centers.

Describe how the IRS verifies tax returns at its service centers.