Carol takes some very aggressive positions on her tax return. She maintains, “With the downsizing of the government, my chances of getting caught are virtually zero.’’ Is Carol’s approach correct?
Answer to relevant QuestionsShould the IRS audit more or fewer returns every year? What issues would you consider in this regard if you were a politician? A wealthy individual? Make a chart that distinguishes among the various types of examinations that the IRS conducts relative to individual income tax returns; namely, office, correspondence, field, and NRP audits. For this purpose, examine the ...Your supervisor says that the U. S. Constitution forces the IRS to reveal the make-up of the DIF formula that it uses to select tax returns for audit. Prepare a file memo assessing the supervisor’s assertion. Should prevailing interest rates bear on tax decision making in either or both of the following situations? a. The taxpayer is contemplating litigation in either the Tax Court or the Court of Federal Claims. b. An ...Carl purposely omitted from his 2014 tax return $ 40,000 of the gross receipts that he collected as the owner of a restaurant. His 2014 return indicated collective gross receipts of $ 25,000. The IRS no longer can pursue ...
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