Question: Your tax client Chen asks whether it is likely that
Your tax client Chen asks whether it is likely that her Form 1040 will be audited this year. You suspect that Chen might modify the information she reports on her return based on your answer. Address Chen's question, and provide her with a justification to comply fully with the tax law's reporting requirements.
Answer to relevant QuestionsRita forgot to pay her Federal income tax on time. When she actually filed, she reported a balance due. Compute Rita's failure to file penalty in each of the following cases. a. Two months late, $1,000 additional tax due. b. ...Maureen, a calendar year individual taxpayer, files her 2014 return on November 4, 2016. She did not obtain an extension for filing her return, and the return reflects additional income tax due of $15,000. a. What are ...Kaitlin donated a painting to the local art museum. As she is subject to a 35% marginal tax rate, she needs a large charitable contribution deduction for the year. She engaged Vargas (who was referred to her by the staff of ...Rod’s Federal income tax returns (Form 1040) for the indicated years were prepared by the following persons. Year Preparer 1 ........ Rod 2 ........ Ann 3 ........ Cheryl Ann is Rod’s next-door neighbor and owns ...Which of the valuation penalties is likely to arise when an aggressive tax payer reports: a. A charitable contribution? b. A business deduction? c. A decedent's taxable estate?
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