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?
Answer to relevant QuestionsWhen a member learns of an error in a previously filed tax return or learns of an error during an audit, how is he or she to respond and still be in compliance with SSTS No. 6? How does the term “the unauthorized practice of law” apply to CPAs? Which subpart and section of Circular 230 discusses each the following topics? a. Conflicting interests b. Disreputable conduct c. Assistance from disbarred or suspended persons d. Representing oneself before the IRS Which of the following situations would most likely result in a violation of the practitioner’s ethical standards? Explain your answer. a. A CPA is controller of a bank and grants permission to the bank to use his ...John Haddock owns 75 percent of Haddock Corporation. The other 25 percent of the stock is held by John’s wife, Marsha. You are a tax manager assigned to prepare the corporate tax return for Haddock. While working on the ...
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