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Elements of tax preparation, basic concepts, planning

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Describe the most common elements of tax preparation.
Discuss the basic concepts of individual income tax law.
Discuss the principles of individual income tax and tax planning strategies.

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Describe the most common elements of tax preparation

The common elements/procedures of tax preparation include:
1. Client interview to gather information, discuss issues and often discuss fee.
2. Obtain tax reporting documents from client.
3. Copy documents for supporting file, and make notes as appropriate to explain taxable events.
4. Input amounts into tax software.
5. Verify input.
6. Review both the input and the tax return as prepared (best if performed by a different person from the preparer in item 3, 4, and 5.
7. Make changes as suggested in the review process.
8. Print the tax return.
9. Top review and sign the return.
10. Bill the client.
11. Preserve and lock clients' files and tax returns.

Discuss the basic concepts of individual income tax law.

The basic concepts in tax preparation are to ...

Solution Summary

The 546 word solution first shows a list of 11 procedures common to tax preparation in a CPA firm. The rest of the solution provides a good narrative explanation of concepts, principles and tax planning strategies for tax preparers.