81-0324660529_131884

81-0324660529_131884 - South-Western Federal Taxation, 2009...

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South-Western Federal Taxation, 2009 Edition Comprehensive Volume ISBN: 0324660529 Chapter 26 Tax Practice and Ethics Accuracy-related penalty. Major civil taxpayer penalties relating to the accuracy of tax return data, including misstatements stemming from taxpayer negligence and improper valuation of income and deductions, are coordinated under this umbrella term. The penalty usually equals 20 percent of the understated tax liability. Closing agreement. In a tax dispute, the parties sign a closing agreement to spell out the terms under which the matters are settled. The agreement is binding on both the Service and the taxpayer, for the disputed year and for all future years. Determination letter. Upon the request of a taxpayer, the IRS will comment on the tax status of a completed transaction. Determination letters frequently are used to clarify employee status, determine whether a retirement or profit sharing plan qualifies under the Code, and determine the tax-exempt status of certain nonprofit organizations. Enrolled agent (EA). A tax practitioner who has gained admission to practice before the IRS by passing an IRS examination.
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This note was uploaded on 03/31/2012 for the course TAX 4001 taught by Professor Robertmcgee during the Spring '09 term at FIU.

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81-0324660529_131884 - South-Western Federal Taxation, 2009...

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