Who sets ethical rules for attorneys in the various states?
> When are committee reports useful to a tax researcher?
> Briefly summarize the usual steps of the legislative process for the development of federal tax legislation.
> When an Internal Revenue Code section and a tax treaty provision appear to conflict, which usually prevails?
> What is a tax treaty? Explain the purpose of a tax treaty. What matters generally are covered in a tax treaty?
> In order for them to have limited practice rights, the IRS requires non-credentialed tax return preparers to participate in the IRS Annual Filing Season Program. What does participation require, and why do you think the IRS has made this change?
> Discuss the powers of taxation that are granted to Congress by the U.S. Constitution. Are any limits placed on the powers of Congress to so tax?
> In what publication(s) would a tax researcher find the official listing of the IRS acquiescences and nonacquiescences to a Tax Court decision?
> In the current year, Dave receives stock worth $125,000 from his employer. The stock is restricted and cannot be sold by Dave for seven years. Dave estimates the stock will be worth $300,000 after the seven years. List as many tax research issues as you
> Many states have an ethics education requirement to become a CPA. Determine each of the following state’s ethics education requirements to become a CPA: a. California b. Texas c. North Carolina d. Your home state
> 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
> Joey parked his car on the top of a hill when he went to watch the X Games in San Diego. He did not properly set his brakes or curb the wheels when he parked the car. When he returned from the games, he found his car had rolled down the hill, smashed int
> Answer each of the following questions: a. What is found in Subpart C, § 10.51 of Circular 230? b. In Circular 230, where are the rules on knowledge of client omissions found? c. Describe the requirements of § 1.400.200 of the AICPA Code of Conduct. d. W
> Answer each of the following questions: a. What is found in Subpart A, § 10.7(a) of Circular 230? b. Describe the requirements of § 1.520.001 of the AICPA Code of Conduct. c. Which SSTS discusses whether a member may rely without verification on informat
> Jennifer owns 200 acres of land on which she grows flowers to sell to local nurseries. Her adjusted basis in the land is $30,000. She receives condemnation proceeds of $20,000 from the state for 10 acres of her land on which a new freeway will be built.
> Determine if your campus has any of the following online tax research services available for student use. If a service is available on your campus, describe how you would gain access to that system for research projects in your tax classes. a. LexisAdvan
> Which of the selected tax journals listed in Exhibit 2-5 can be found online? Which are available through your university’s library in either electronic or hard copy?
> In the tax research process, the researcher has an obligation to the client to evaluate authority. Do the precedents in all tax authority carry the same value? Explain.
> Discuss the difference between a revenue ruling and a revenue procedure.
> Phred Phortunate won his state lotto two years ago. His lotto ticket was worth $10 million, which was payable in 20 annual installments of $500,000 each. Phred paid $1 for the winning ticket. The lotto in Phred’s state does not allow winners to receive t
> Dr. Diego Dissolution is recently divorced and has some questions regarding payments he is making to his ex-wife (Mrs. D.). Diego is 45 years old and has a successful dental practice. Mrs. D. was divorced from her first husband six years ago. Diego is pa
> Tom and Donna were divorced three years ago. At the time of their divorce, they owned a residence whose value had significantly increased during the marriage. Tom remained half-owner of the house, but he moved out and allowed Donna to continue living in
> Which of the following situations would most likely result in a violation of the practitioner’s ethical standards? Explain your answer. a. A CPA (not in public practice) is controller of a bank and grants permission to the bank to use his “CPA” title in
> Juanita Sharp purchased a large parcel of property for $120,000. A short time after purchasing the property, Sharp submitted plans for the division of the parcel into six lots and the construction of three single-family residences on three of the lots. T
> Matthew Broadway was a partner in the law firm of Johnson & Smith, a partnership of 20 partners, for the past 10 years. Without the knowledge or consent of the other partners, Matthew worked on a highly complicated acquisition and merger project for six
> Sam Manuel has been employed on a full-time basis as an electrical engineer for the past three years. Prior to obtaining full-time employment, he was self-employed as an inventor of complex electronic components. During this period of self-employment, mo
> Which of the following is a contingent fee under Circular 230 § 10.27? A fee (1) that is based on a percentage of the refund reported on a return, (2) that is based on a percentage of the taxes saved, or (3) that otherwise depends on the specific result
> On December 1, 2014, Ericka receives $18,000 for three months’ rent (December 2014, January 2015, and February 2015) for an office building. List as many tax research issues as you can to determine the tax consequences of this transaction. Do not attempt
> The Mucho Oro Indian Tribe operates a casino on its reservation in Arizona. The casino is very profitable, and therefore the tribe has excess money to invest. The tribe is approached by an entrepreneur who wants to build an outlet mall next to the casino
> Distinguish between a citation with “I.R.B.” in it and one with “C.B.” in it.
> Tax law provisions tend to change over time. Explain how this might affect tax research and planning.
> What is the precedent-setting value of each of the following cases? a. Lowell Bar Association v. Loeb b. Bercu c. Sperry v. Florida
> Summarize what is discussed in each of the following SSTS: a. SSTS No. 1 b. SSTS No. 4 c. SSTS No. 6
> Ned Naive operated several franchised stores, and at the home office’s suggestion, he consolidated its payroll and accounting functions with Andy the Accountant. Andy is not a CPA. Last year, Andy began misappropriating taxpayers’ escrowed tax withholdin
> Vincent (“Vinny”) Vineyard is a very successful physician in Temecula, California. He earns approximately $800,000 per year from his medical practice. His two children have graduated from college, and he and his wife are now “empty-nesters.” His son, Vin
> The Uniform CPA exam has four parts. Briefly summarize the tax and ethics issues covered in the REG section of the exam.
> Which subpart and section of Circular 230 discusses each the following topics? a. Solicitation b. Negotiation of a taxpayer’s refund checks c. Who may practice before the IRS d. Authority to disbar or suspend from practice before the IRS
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart B, § 10.33 b. Subpart B, § 10.35 c. Subpart B, § 10.36 d. Subpart B, § 10.37
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart A, § 10.22(b) b. Subpart A, § 10.7(c)(1)(vi) c. Subpart B, § 10.24 d. Subpart B, § 10.34
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart C, § 10.51(a)(12) b. Subpart A, § 10.6(e) c. Subpart A, § 10.3(f) d. Subpart B, § 10.27
> What is the precedential value of an IRS written determination under IRC § 6110?
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart A, § 10.4(c) b. Subpart B, § 10.21 c. Subpart B, § 10.26 d. Subpart B, § 10.29
> What is collateral estoppel? How does it affect tax research and planning?
> What are the search connectors discussed in the text used by Checkpoint? Describe how each operates.
> How does the term “the unauthorized practice of law” apply to CPAs?
> Donna Deduction is a staff accountant for Dewey, Cheatham, and Howe, LLP. She and other staff raid the office supply cabinet for office supplies to take home to use. In addition to the standard paper, pens, paper clips, and so forth, the staff takes home
> What are the disadvantages of using an online tax service?
> Ethical professional behavior is the interaction of several standards. Identify these standards and briefly describe each.
> The text discusses three types of ethical reasoning. Identify them and give a short description of each.
> Briefly describe what is contained in each of the following tax services: a. Thomson Reuters CheckPoint b. CCH IntelliConnect c. LexisAdvance Tax d. Westlaw
> Where would a tax researcher find pertinent committee reports?
> What is the purpose of citing relevant authority in research memos?
> Describe an online tax research system. What are the primary advantages of such a system?
> Identify and briefly describe the two major types of tax research issues.
> When a member learns of an error in a previously filed tax return or learns of an error during an audit, how is he or she to respond and still be in compliance with SSTS No. 6?
> Last year a taxpayer was audited by the IRS and an item of deduction on the tax return was disallowed. On this year’s tax return, the taxpayer would like to deduct a similar item. Discuss the circumstances under which a member may allow the taxpayer to t
> A member may use estimates in completing a tax return according to SSTS No. 4. When might the use of estimates be considered appropriate?
> What is deemed to be substantial authority under the IRC § 6662 regulations? Why is this important?
> According to SSTS No. 2, a tax return should be signed by a member only after reasonable effort has been made to answer all questions on the return that apply to the taxpayer. What are some of the reasonable grounds under which a member may sign a return
> What threshold does SSTS No. 1 provide for a tax practitioner regarding tax return positions? Could disclosure of the position influence that threshold?
> When must a member tax practitioner follow SSTS when preparing or signing a return?
> Discuss the precedential value of private letter rulings, determination letters, and technical advice memoranda. What role do these items play in conducting tax research?
> What are the SSTS? Who issues them? Discuss their principal objectives.
> Under the Confidential Client Information Rule of the AICPA Code of Professional Conduct, a CPA in public practice must not disclose confidential client data without the specific consent of the client. Under what conditions might a disclosure of confiden
> In each of the following (independent) situations, state which AICPA Code of Professional Conduct rule or principle (if any) is violated by a CPA? a. A CPA in public practice opens a tax practice and names the new firm “Jill’s Super Tax.” b. In return fo
> The tax researcher must find the facts as the first step in tax research. Give examples of the kind of information that a tax practitioner might want to obtain.
> A CPA in public practice must meet certain general standards under § 1.300.001 (the General Standards Rule). Discuss the four general standards of this rule.
> What specific tax-related situations may result in a conflict of interest for members in public practice under the Integrity and Objectivity Rule of the AICPA Code of Professional Conduct?
> Briefly list and discuss the primary threats to complying with the Independence Rule of the AICPA Code of Professional Conduct.
> Practicing CPAs generally are subject to the AICPA Code of Professional Conduct. What is its stated purpose?
> Not all individuals who for compensation prepare or assist with the preparation of all or substantially all of a tax return or claim for refund are subject to the duties and restrictions relating to practice in subpart B as well as subject to the sanctio
> A compensated individual who prepares or assists with the preparation of all or substantially all of a tax return or claim for refund must have a PTIN. What is a PTIN, and which individual(s) are required to obtain one?
> What is a technical advice memorandum? Who may request it? What kinds of issues are addressed therein? Does the IRS include technical advice memoranda in any official publication?
> A practitioner cannot give written advice under Circular 230 § 10.37 in which situations?
> What are the four best practices under Circular 230 § 10.33?
> It has been said that the tax research process is more circular than linear. Do you agree with this statement? Explain your answer.
> If a tax practitioner finds an error in a prior year’s tax return, what action (if any) must he or she take under Circular 230? What subpart and section addresses this situation?
> Tax planning falls into two major categories, the “open” transaction and the “closed” transaction. Discuss each type of transaction and describe how each affects tax planning.
> Several groups of individuals do most of the tax compliance work in the United States. Identify these groups and briefly describe the kind of work that each group does. In this regard, be sure to define the term enrolled agent.
> Discuss briefly the events leading to the passage of the 16th Amendment to the U.S. Constitution.
> What are the six basic steps in conducting tax research? Briefly discuss each step in the tax research process.
> May a tax practitioner who is a CPA form a CPA partnership with a former IRS agent who is also a CPA? What limits (if any) would be placed on such a partnership?
> In a modern, industrial society, the tax system is derived from several disciplines. Identify the disciplines that play this role in the United States. Explain how each of them affects the U.S. tax system.
> What is a determination letter? Which office of the IRS issues determination letters? What kinds of issues are addressed therein?
> What is tax planning? Explain the difference between tax evasion and tax avoidance and the role of each in professional tax planning.
> What is tax planning? Explain the difference between tax evasion and tax avoidance and the role of each in professional tax planning.
> Have you ever imagined having one electronic device that does everything you would ever need? a. What commercial activities can be done with a cell phone? With a cell phone/PC combination device? What do you do when you’re on your cell phone? What do you
> Certificate authorities are an important part of a public key infrastructure (PKI). Research at least two certificate authorities and write a report that explains the different types of digital certificates that they offer.
> Security awareness training is necessary to teach employees “safe computing” practices. The key to effectiveness, however, is that it changes employee behavior. How can organizations maximize the effectiveness of their security awareness training program
> Read the article “Security Controls that Work” by Dwayne Melancon in the 2007 Issue, Volume 4 of the Information Systems Control Journal. Write a report that answers the following questions: 1. What are the differences between high-performing organizatio
> What are the limitations, if any, of relying on the results of penetration tests to assess the overall level of security?
> Enter the following data into a spreadsheet and then perform the following tasks: a. Calculate examples of these batch totals: • A hash total • A financial total • A record count b. Assume the followi
> a. Identify and discuss the basic factors of communication that must be considered in the presentation of the annual report. b. Discuss the communication problems a corporation faces in preparing the annual report that result from the diversity of the us
> Visit Symantec.com or any other security software vendor assigned by your instructor and download a trial version of encryption software. a. Use the software to encrypt a file. b. Send the encrypted file to your instructor and to a friend. c. Try to ope
> A purchasing department received the following e-mail. Dear Accounts Payable Clerk, You can purchase everything you need online—including peace of mind—when you shop using Random Account Numbers (RAN). RAN is a free service for Big Credit Card customers
> What kinds of documents are most likely to be turnaround documents? Do an internet search to find the answer and to find example turnaround documents.
> The Gardner Company, a client of your firm, has come to you with the following problem. It has three clerical employees who must perform the following functions: a. Maintain the general ledger b. Maintain the accounts payable ledger c. Maintain the acco
> A few years ago, news began circulating about a computer virus named Michelangelo that was set to “ignite” on March 6, the birthday of the famous Italian artist. The virus attached itself to the computer’s operating system boot sector. On the magical dat
> An auditor found that Rent-A-Wreck management does not always comply with its stated policy that sealed bids be used to sell obsolete cars. Records indicated that several vehicles with recent major repairs were sold at negotiated prices. Management vigor
> Discuss several ways that ERM processes can be continuously monitored and modified so that deficiencies are reported to management.
> Prepare flowcharting segments for each of the following operations: a. processing transactions stored on a sequential medium such as a magnetic tape to update a master file stored on magnetic tape b. processing transactions stored on magnetic tape to upd
