Question 1

Describe how the IRS applies interest rules in the context of a tax controversy.

Accepted Answer

The answer of Describe how the IRS applies interest rules...

Question 2

In connection with the taxpayer penalty for substantial understatement of tax liability,what defenses (if any)are available?

Accepted Answer

The answer of In connection with the taxpayer penalty for...

Question 3

What taxpayer penalties can arise when a tax return includes an item that is assigned a fair market value?

Accepted Answer

The answer of What taxpayer penalties can arise when a...

Question 4

Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS.

Accepted Answer

The answer of Identify a profile for a taxpayer who...

Question 5

Circular 230 requires that the tax practitioner use the "best practices" of the tax profession in carrying out a tax engagement.Specify what some of these best practices entail.

Accepted Answer

The answer of Circular 230 requires that the tax practitioner...

Question 6

Why is it advantageous for both the taxpayer and the IRS to have tax returns filed electronically?

Accepted Answer

The answer of Why is it advantageous for both the...

Question 7

Does the tax preparer enjoy an "attorney-client privilege" of confidentiality with his or her clients?

Accepted Answer

The answer of Does the tax preparer enjoy an "attorney-client...

Question 8

The client has decided to dispute the Revenue Agent's Report.What is the tax advisor's next step?

Accepted Answer

The answer of The client has decided to dispute the...

Question 9

How is the tax law affected by Federal criminal statutes?

Accepted Answer

The answer of How is the tax law affected by...

Question 10

Over the last two decades,the Treasury has enforced numerous means by which to identify those taxpayers who use tax shelter devices,and to eliminate any resulting losses and deductions.Special reporting requirements apply to transactions that the IRS has labeled "tax shelters." Describe those requirements.

Accepted Answer

The answer of Over the last two decades,the Treasury has...

Question 11

How do rulings issued by the IRS benefit both the taxpayer and the IRS?

Accepted Answer

The answer of How do rulings issued by the IRS...

Question 12

If a taxpayer is audited by the IRS and is unwilling to accept the findings of the agent,how does the taxpayer's audit strategy change when the dispute is taken to the IRS Appeals Division? Hint: What are the "hazards of litigation?"

Accepted Answer

The answer of If a taxpayer is audited by the...

Question 13

CPA Jennifer has heard about the AICPA's Statements on Standards for Tax Services.Although Jennifer is a licensed CPA in her state,she is not a member of the AICPA.How do the Statements affect Jennifer's tax practice?

Accepted Answer

The answer of CPA Jennifer has heard about the AICPA's...

Question 14

Describe the following written determinations that are issued by the IRS.

Accepted Answer

The answer of Describe the following written determinations that are...

Question 15

Carole,a CPA,feels that she cannot act as an aggressive advocate for tax clients in today's environment.What aspects of the ethical conduct of a tax practice might have influenced Carole's attitude?

Accepted Answer

The answer of Carole,a CPA,feels that she cannot act as...

Quiz 26: Tax Practice and Ethics