



Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
A comprehensive overview of essential tax concepts and definitions relevant to tax 4001. It covers various aspects of tax law, including tax return positions, accounting methods, administrative authorities, tax avoidance, and tax fraud. The document also explores different types of audits, tax rates, and the statute of limitations for tax audits. It is a valuable resource for students studying tax law and provides a solid foundation for understanding key principles.
Typology: Exams
1 / 5
This page cannot be seen from the preview
Don't miss anything!
#1 Tax Return Positions - ANS-file tax returns taking a position that has a realistic possibility of being sustained if challenged (1 in 3 possibility) #2 Try to Answer All Questions on Returns - ANS-sometimes there are situations where the taxpayer does not have to answer all questions #3 Procedural Aspects of Preparing a Return - ANS-a tax preparer may rely on information provided without auditing unless the information appears to be incorrect #4 Use of Estimates - ANS-estimates can be used, under some circumstance, on a filed tax return #6 Knowledge of Error - ANS-If a tax professional knows about an error in a tax return, they must advise the taxpayer to file a correct return. The tax professional may not inform the IRS without the taxpayer's permission Accounting Methods for Tax - ANS-- must use cash or accrual method or a hybrid of the two Accrual Income - ANS-income when the all events test is met Administrative Authorities - ANS-Treasury and IRS Pronouncements AICPA Statements on Standards for Tax Services - ANS-- binding only for members of the AICPA
C Corporation - ANS-not a flow through entity. All income and loss and deductions stay inside the corporation and are not available to shareholders. The entity pays its' own taxes directly. Circular 230 - ANS-Issued by the IRS, provides regulations governing tax practice and applies to all persons practicing before the IRS Correspondence Audit - ANS-- most common audit
Proportional Tax - ANS--applies the same rate on all income, ex: Sales Tax -Also known as a flat tax rate = Tax Base X Tax Rate Regressive Tax - ANS--applies a decreasing rate as the tax base increases, ex: Social Security Taxes (Payroll Taxes) -as the tax base increases, the taxes paid increase, but the marginal tax rate decreases (not common) Secondary Sources - ANS-Everything that is NOT a primary source Statute of Limitations - ANS--limitations for IRS to audit a tax return -For both amended tax returns filed by a taxpayer and proposed tax assessments by the IRS, the statute of limitations generally 3 years from the later of
Taxpayers Who Benefit from Income Shifting