50 words min
What are the various expectations of taxpayer compliance and how are they important?
The expectations of taxpayer compliance are that the taxpayer will pay voluntarily and accurately in a timely manner. Taxpayer compliance is important to the government in understanding when the taxes will be received so that proper planning can be done.
When people file their taxes is related to whether they expect a tax refund. Those who expect a refund will file early. Those who expect to pay might not file until the last minute. They might even ask for an extension. As a result, the government expects to receive many returns as soon as taxpayers receive all the necessary forms. Most of these will require refunds. Understanding this allows the government to better make funds available for refunds. Then there is a lull in returns, followed by a high number of returns just before the due date. Most of the latter returns will be tax payments. Electronic ...
The various expectations of taxpayer compliance and how they are important is given. The solution is answered in 511 words with four sources cited.
Formulate tax-planning advice: tax research for John Gemstone
CASE STUDY PROBLEM
John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has
questioned the following deduction items on Mr. Gemstone's tax return for the year under
? A $10,000 loss deduction on the rental of his beach cottage.
? A $20,000 charitable contribution deduction for the donation of a painting to a local
art museum. The agent has questioned whether the painting is overvalued.
? A $15,000 loss deduction from the operation of a cattle breeding ranch. The agent is
concerned that the ranch is not a legitimate business (i.e., is a hobby).
Your supervisor has requested that you represent Mr. Gemstone in his discussions with
a. What additional questions should you ask Mr. Gemstone in an attempt to substantiate
the deductibility of the above items?
b. What tax research procedures might be applied to build the best possible case for your