Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

Exercise 9

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 take the deduction on the current year's return and still comply with SSTS No. 5. Under what conditions must special disclosure be made by the member