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Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill
Edition 10ISBN: 978-1285439396Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill
Edition 10ISBN: 978-1285439396 Exercise 2
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
Explanation
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Tax return
Tax return refers to the form pertaining to which annual statement of the personal and income circumstance is being stated by the taxpayer that is undertaken by the tax authority for determining the tax liability of the taxpayer on the basis of whether he is individual or a company. Thus the format of tax return generally comprises of worksheet pertaining to which figures of income is taken into consideration for computation of the tax liability.
In this case, a tax practitioner who comes to know about the error in the tax return filed previously by the client is required to provide information about such error to the actual client and brief about its consequences according to the circular 230 and AICPA statement on SSTS. If the error is present in the future or current return, the tax practitioner is required to withdraw himself from the representation of the client as he is prelude from signing the tax return of the client that contain position without the existence of the realistic basis. The practitioner of tax is obliged to reveal the error that is being discovered by him in the previous tax return to the client as per the section 10.21 of the circular 230, SSTS, return preparation and administrative proceedings and as per the regulation that govern the practice of tax practitioner in front of IRS.
Tax return refers to the form pertaining to which annual statement of the personal and income circumstance is being stated by the taxpayer that is undertaken by the tax authority for determining the tax liability of the taxpayer on the basis of whether he is individual or a company. Thus the format of tax return generally comprises of worksheet pertaining to which figures of income is taken into consideration for computation of the tax liability.
In this case, a tax practitioner who comes to know about the error in the tax return filed previously by the client is required to provide information about such error to the actual client and brief about its consequences according to the circular 230 and AICPA statement on SSTS. If the error is present in the future or current return, the tax practitioner is required to withdraw himself from the representation of the client as he is prelude from signing the tax return of the client that contain position without the existence of the realistic basis. The practitioner of tax is obliged to reveal the error that is being discovered by him in the previous tax return to the client as per the section 10.21 of the circular 230, SSTS, return preparation and administrative proceedings and as per the regulation that govern the practice of tax practitioner in front of IRS.
Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill
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