An accountant friend of yours tells you that he “almost never” does any tax research because he believes that “research usually reveals that some tax planning idea has already been thought up and shot down.” Besides, he points out most tax returns are never audited by the IRS. Can a tax adviser who is dedicated to reducing his client’s tax liability justify the effort to engage in tax research? Do professional ethics demand such efforts? Which approach would a client probably prefer?
Answer to relevant QuestionsLocate the following Code provisions, and give a brief description of each in an e-mail to your instructor. a. § 61(a)(13). b. § 643(a)(2). c. § 2503(g)(2)(A). Which of the following would be considered advantages of the Small Cases Division of the Tax Court? a. Appeal to the Tax Court is possible. b. A hearing of a deficiency of $65,000 is considered on a timely basis. c. Taxpayer ...Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in 2014, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reports no other temporary or ...You saw on the online Business News Channel that YoungCo has “released one-third of its valuation allowances because of an upbeat forecast for sales of its tablet computers over the next 30 months.” What effect does such ...HippCo and HoppCo operate in the same industry and report the following tax rate reconciliations in their tax footnotes. Compare and contrast the effective tax rates of these two companies.
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