Marvin has come to your office for help in filing his 2 0 2 2 federal income
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Question:
Marvin has come to your office for help in filing his federal income tax return. He gives you the following information:
Marvin is single and works for Tesla. Marvin received a salary of $ in as reported on his W Marvin had $ of federal income tax withheld from his paychecks during the year.
Marvin bought and sold various stocks in He had $ in capital gains from the sales and $ in capital losses from sales.
Next, assume that you filed the tax return based on the information above on March In August you discover that Marvin did not mention to you that he received other taxable income of $ in as reported on a Form MISC. This was a onetime transaction and you are not sure if Marvin intentionally omitted the information or if he made an honest mistake since it was a onetime transaction.
Marvin has asked you how likely it is that his return will be audited, and if audited, how does the typical audit work. In addition, Marvin has asked you how long the IRS has to audit his tax return and decide if Marvin owes more tax.
Please explain to Marvin the likelihood of audit and what the initial audit would involve. Also, explain what the last day the IRS can audit his return and seek to impose additional tax is Be sure to fully explain your reasoning. PLEASE FULLY EXPLAIN
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