You are a CPA in practice and have a long-term client who is involved in a nasty divorce proceeding with her husband. The client has assets she deposited in a bank account in the Grand Cayman Islands. There is U. S. taxable interest on the deposits. Because she does not want her husband to know about the deposits, she asks you to report the interest on her tax return in such a way that it will not “tip off” her husband to the existence of the account. You can handle this request by reporting the interest through Schedule C (instead of Schedule B) on her tax return and thus avoid making the source of the income known. What potential nonregulatory ethics issues do you see in this situation?
Answer to relevant QuestionsAhi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $ 100 million, due on March 15. There are no penalties or interest because of the IRS. One of Ahi’s employees ...You are the tax manager in a CPA office. One of your clients, Snapper Corporation, is also an audit client of the firm. The CFO of Snapper invites you and the audit manager for a one-week deep-sea fishing trip to Mexico, all ...Tax law provisions tend to change over time. Explain how this might affect tax research and planning. What is the target readership of each of the following tax journals? a. TAXES b. Journal of Taxation c. Practical Tax Strategies d. The Tax Adviser e. The ATA Journal of Legal Tax Research Briefly describe what is contained in each of the following tax services: a. Thomson Reuters CheckPoint b. CCH IntelliConnect c. LexisNexis d. Westlaw and WestlawNext
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