Question

The IRS is disputing a deduction reported on your Year 1 tax return, which you filed on April 12 of Year 2. On April 4 o...

The IRS is disputing a deduction reported on your Year 1 tax return, which you filed on April 12 of Year 2. On April 4 of Year 5, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a “carrot”—the prospect of an offer in compromise—and a “stick”—the possibility of a higher penalty. Although you have substantial authority for the deduction, you consider the following alternatives: (1) waive the statute of limitations for the entire return, (2) waive the statute of limitations for the deduction only, or (3) do not waive the statute of limitations in any way, shape, or form. Which alternative should you choose, and why?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

ANSWER

In the given problem, alternative 2 that is to relinquish deduction for statute of limitations only (and for a reasonable per

Refusing to waive the statute of limitations in some way, form or shape as in option 3 not only will speed up the audit agent

THANK YOU FOR THE QUESTION....KINDLY RATE....IT HELPS ME A LOT

Add a comment
Know the answer?
Add Answer to:
The IRS is disputing a deduction reported on your Year 1 tax return, which you filed on April 12 of Year 2. On April 4 o...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • C: 15-64 Chapter 15 Tax Strategy Problem The IRS is disputing a deduction reported on your...

    C: 15-64 Chapter 15 Tax Strategy Problem The IRS is disputing a deduction reported on your Year 1 tax return, which you filed on April 12 of Year 2. On April 4 of Year 5, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a “carrot”—the prospect of an offer in compromise—and...

  • IRS Practice & Procedure In year 1, X timely filed his income tax return. X properly...

    IRS Practice & Procedure In year 1, X timely filed his income tax return. X properly owed and paid tax for that year. In year 4, X incurs a net operating loss. What is the statute of limitations for obtaining a refund for year 1 taxes upon the carryback of the loss? Explain.

  • Individual Income Taxes 2020 CHAPTER 1 An Introduction to Taxation and Understanding the Federal Tax Law...

    Individual Income Taxes 2020 CHAPTER 1 An Introduction to Taxation and Understanding the Federal Tax Law 36. LO.5 With regard to the IRS audit process, comment on the following: a. The audit is resolved by mail. b. The audit is conducted at the office of the IRS. c. A "no change" RAR results. d. A special agent joins the audit team. 37. LO.5 Aldo has just been audited by the IRS. He does not agree with the agent's findings but...

  • Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first...

    Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT