ACCT 2001 Lecture Notes - Lecture 5: Tax Treaty, Citator, Tax Law

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28 Jan 2018

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ACCT 2001 Full Course Notes

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2-4 through 2-9: what percentage of returns are audited, answer less than 1, to promote the highest level of voluntary compliance, the irs must efficiently select returns for audit. In addition to outside sources of information (e. g. , newspapers, financial statement disclosures, informants, etc. Briefly discuss each program: dif (discriminant function) system: selects the returns with the highest probability of underreported taxable income, while not publicly disclosed, the predicted probability is likely a function of specific tax return items. List and describe each type below: correspondance examination, frequency: most common. Starts with a few items and may be expanded to other years or items. Describe each source: the us constitution: the founding law of the us, ratified in 1789 provides little in the way of tax law, highest authority but provides little in the way of tax law. Not covered in this class. https://www. youtube. com/watch?v=tyej55o3el0: basic organization of the code: exhibit 2-8 is a valuable reference for those practicing in tax.

Related Questions

QUESTION 1

Mary Jones files her 2014 federal income tax return at an IRS office on February 4, 2016. Her return was on extension until 10/15/15. When does the Statute of Limitations (SOL) expire?

	A.	February 4, 2018
	B.	April 15, 2018
	C.	October 15, 2018
	D.	February 4, 2019

QUESTION 2

Your client's 2014 federal income tax return was filed on 4/15/15. Recently your client received an audit adjustment attributable to the basis of an investment asset, the adjustment of which represents an adjustment of 35% of the gross income reported on the return. At no time has the service secured a statute extension from the client. Here it is July 3, 2018 and your client presents you with the 30 day letter on the proposed adjustment. What do you advise?

	A.	The statute of limitations remains open for six years under IRC Â§ 6501(e).
	B.	The statute of limitations has expired under IRC Â§ 6501(a)
	C.	The statute of limitations remains open under IRC Â§ 6501(c)
	D.	The statute of limitations is open under IRC Â§ 6501(c)(4) because your client didn't raise the statute of limitations defense earlier.

QUESTION 3

Under IRC Â§ 6501(c)(4) a taxpayer may agree to extend the statute of limitations for assessment. Identify the statement that is true.

	A.	To terminate the 872-A statute of limitations (SOL), a taxpayer may submit a form 872-T to the IRS.
	B.	The 872 and 872-A may not be restricted to specific items or issues.
	C.	An 872 will never be secured if the statute of limitations in open under IRC Â§ 6501(e)(1)
	D.	An estate tax return (chapter 11) statute of limitation may be extended by agreement.

Tax Years. (Obj. 6)The date a tax year closes is an important date from a taxpayer'spoint of view because it stops the IRS from assessing a taxdeficiency on a closed tax year. It is an important date from thegovernment's point of view because it stops a taxpayer from makinga refund claim on a closed tax year.

a. If a taxpayer files her tax returnfor 2014on April 1, 2015, on what specific date does her 2014 taxyear close under the normal closing rule?

b. If a taxpayer inadvertently (mistakenly) omits too much grossincome from his or her income tax return, the normal closing of atax year is extended by three years. What percentage of thetaxpayer's gross income must be omitted from his or her income taxreturn in order for the closÂing year to be extended? As part ofyour answer, explain exactly how this percentage is applied

maroonlion314

1, If an amount is zero, enter "0". If required, round your answers to two decimal places.

a. Wilson filed his individual tax return on the original due date, but failed to pay $17,220 in taxes that were due with the return.

If Wilson pays the taxes exactly 2 months late, calculate the amount of his failure-to-pay penalty.
$

b. Joan filed her individual income tax return 4 months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $16,460, which was the balance of the taxes she owed with her return.

Disregarding interest, calculate the total penalties that Joan will be required to pay, assuming the failure to file was not fraudulent.
$

c. Jack filed his tax return 7 months and 1 days late and did not request an extension of time for filing. Jack's return indicated that he is to receive a $5,495 refund in taxes.

Calculate the amount of Jack's penalty for failure to file his tax return on time, assuming the failure-to-file was not fraudulent.
$

2, Linda underpaid her taxes for the current year by $24,000 due to negligence.

a. Calculate Linda's accuracy-related penalty for negligence.
$

b. Assume that the underpayment of taxes by Linda was determined to be fraudulent, and calculate the total amount of Linda's fraud penalty.
$

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ACCT 2001 Lecture Notes - Lecture 5: Tax Treaty, Citator, Tax Law

ACCT 2001 Full Course Notes

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