2. What are your thoughts on the abuses in the tax return preparation industry, the role of the IRS in curbing these abuses, and the role of CPA's and other licensed professionals.
The "Enrolled Agent" credential is not a "certification," although it is regularly referred to as such by many practitioners, including the NAEA.
To become a credentialed EA, the person must pass an IRS test covering individual and business tax returns, they must agree to adhere to ethical standards, and they must complete 72 hours of continuing education every three years.
The EA test is on tax law, which distinguishes it significantly from the CPA (certified public accountant) exam which is almost exclusively on accounting and auditing rules and procedures, specifically designed to facilitate the interpretation of financial statements. This financial statement interpretation generally has no relevance to tax law except as to how tax obligations are presented in the financial statement, not how the taxes are calculated.
All candidates are subject to an IRS background check and are subject to being "disbarred" from practice before the IRS for misdeeds. An EA can also be disbarred for failing to meet their continuing education requirements.
2. What are your thoughts on the abuses in the tax return preparation industry, the role...
discussions surrounding preparation of a tax return privileged? ONo, information provided to prepare income tax retums is not privileged. Yes, if the retum preparer is authorized to practice before the IRS. Yes, if the taxpayer specifically requests the discussions be privileged. O No, because the IRS will not recognize a representative's power of attorney without an engagement letter.
1. Kopel was engaged to prepare Raff's 20x9 federal income tax return. During the tax preparation interview, Raff told Kopel that he paid $3,000 in property taxes in 20x9. Actually, Raff's property taxes amounted to only $600. Based on Raff's word, Kopel had no reason to believe that the information was incorrect. Kopel did not request underlying documentation and was reasonably satisfied by Raff's representation that Raff had adequate records to support the deduction. Is Kopel subject to the preparer...
What thoughts do you have about how you will engage in scholarship in your NP role? What are some barriers you see to implementing evidence-based practice?
Problem 3 : Samantha is a CPA. She operates a tax return preparation service business as a sole proprietorship. During 2020, she received cash of $95,000 for tax return preparation services. Of the amount received in 2020, $3,500 relates to payment of late invoices for tax services provided during 2019. Samantha also has accounts receivable of $9,000 for services provided in 2020. Compute Samantha’s gross income for the year 2020 under (a) the cash method of accounting and (b) the...
This week you will resubmit updated tax preparation forms based on your instructor’s feedback. Along with this documentation, you will submit your responses to the following prompts in a Word document of at least two pages: 1. Explain a tax preparer’s professional responsibilities in tax return preparation related to gross income, adjusted gross income, and taxable income. 2. Describe how tax preparers demonstrate ethical behavior in the tax preparation process for their clients. 3. Identify recommendations a tax preparer would...
Write a 2-4 page paper (not including title or reference pages) with your thoughts and opinions based on what you’ve learned in this class on how the landscape of data privacy will change in the next 50 years as it relates to information systems and knowledge sharing. Include your thoughts on: The role of government in data ethics, management, and security The role of the organization in data ethics, management, and security The role of the individual in having the...
[6] When a member of the AICPA prepares a taxpayer’s federal income tax return, the member has the responsibility to A. Be an advocate for the entity’s position. B. Verify the data to be used in preparing the return. C. Take a position of independent neutrality. D. Argue the position of the Internal Revenue Service. The correct answer is A. A. A member of the AICPA engaged in tax practice has the right and responsibility to be an advocate for...
California business owner, Mason, would like to hire an employee who understands income tax return preparation. Depending upon their credentials and their role with the company, the new employee may or may not be required to register with CTEC. Which of the following employees would be required to register with CTEC? a) A preparer who prepares and signs returns for an exempt preparer b) An active California CPA c) An employee of a business which is not in the tax...
According to the Internal Revenue Service (IRS), the chances of your tax return being audited are about 6 in 1,000 if your income is less than $50,000; 10 in 1,000 if your income is between $50,000 and $99,999; and 49 in 1,000 if your income is $100,000 or more (Statistical Abstract of the United States: 1995). If two taxpayers with incomes under $50,000 are randomly selected and two with incomes more than $100,000 are randomly selected, what is the probability...
What are your thoughts on which of the 3 Branches of government do you think is most important to the health care industry?