Vitronix Corporation’s net worth exceeds $160 million, its stock is publicly traded, and a national CPA ﬁrm audits its ﬁnancial statements. Wilson Corporation’s net worth also exceeds $160 million. However, it is closely held by members of the Wilson family. Discuss the reasons that the IRS might choose to audit Wilson Corporation rather than Vitronix Corporation.
Answer to relevant QuestionsCuster County is considering raising revenues by imposing a $25 fee on couples who obtain a marriage license within the county. Does this fee meet the definition of a transaction-based tax? Mrs. NM received a letter from the IRS asking her to submit written substantiation of a $1,500 charitable contribution deduction. Discuss the probable tax consequences to Mrs. NM if: a. She sends the IRS copies of her ...Mr. and Mrs. Lear ﬁled their 2013 Form 1040 on April 1, 2014. On November 11, 2015, they received a notice of deﬁciency in which the IRS assessed $19,044 of additional 2013 income tax. Compute the amount that the Lears ...Ms. Cross didn’t request an extension of time to ﬁle last year’s income tax return and didn’t mail the completed return to the IRS until August 8. She enclosed a check for $2,380, the correct balance of tax due with ...The IRS recently assessed a $290,800 income tax deficiency on CMP Corporation. The deficiency is attributable to a complicated accounting issue involving CMP’s in-vestment in a controlled foreign corporation. CMP plans to ...
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