Purchase Solution

Who would the IRS audit - the flow-through entity or the tax

Not what you're looking for?

Ask Custom Question

Who would the IRS audit - the flow-through entity or the tax-payer?

Purchase this Solution
Solution Summary

The solution discusses who would the IRS audit - the flow-through entity or the tax-payer.

Solution Preview

Who would the IRS audit - the flow-through entity or the tax-payer?

The IRS is more likely to audit a flowthrough entity than a taxpayer, but they could (and do) audit either. Flowthrough entities get audited more, particularly if they have between $10-50 million in assets. If the flowthrough entity misstates their financial data, it flows through to the taxpayer. It wouldn't ...

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • What is a flow-through entity?

    A Flow Through entity helps avoid the concept of double taxation, where the entity first pays tax on the income generated and then the individuals who own the entity (or shares of the entity) end up having to pay tax again on what they received from the

  • Tax Questions about corporations and partnerships

    The explanation for the partnership interest increasing is that a partnership is a flow-through entity taxed at the individual partner level.

  • Federal Taxation: Assessing Audit Risk, Tax Evasion

    The IRS then determines if an audit should take place at the federal level of the tax return (in most cases, it does). In the case of a tax shelter, it definitely would cause an IRS audit.

  • Types of legal entities used for operating a business

    For example, some states don't recognize single member LLCs and in those states, the business would not be reported on an entity form (partnership, corporation). Again, the IRS would accept the reporting on an individual return. 3.

  • Audit Practices

    The audit rate increases to 12.5% for earners making $1,000,000 or more (an increase of 100% as compared to 2009 tax year).

  • What kinds of audits are there? What type of audits do comp

    The first reason is that the respective tax agency has discovered an area of discrepancy that they are trying to verify with the entity, or the audit is a random audit.

  • T-F questions - Taxation of Corporations and Partnerships

    Most tax elections concerning the computation of taxable income for a passthrough entity are made by the entity. False, normally elections pertain to the taxable entity, not a pass-through entity (although there are some at that level also).

  • Accounting education, experience and responsibilities

    Enrolled agents are federally licensed tax practitioners who have technical expertise in the field of taxation and who are authorized by the United States Department of Treasury to represent taxpayers before all administrative levels of the IRS for audits

  • S Corporation versus Partnership- Taxes & Liability

    Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates," (IRS, 2010b). References: IRS, (2010a). Partnerships.

View More Related Solutions