ANSWER True LO 24 DIFFICULTY Easy 17 A proposed regulation can be relied on

Answer true lo 24 difficulty easy 17 a proposed

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ANSWER: TrueLO: 2.4DIFFICULTY: Easy_____17. Aproposedregulationcanbereliedonwhenplanningatransaction.ANSWER: FalseLO: 2.4DIFFICULTY: Easy
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Chapter 2: The Tax Practice Environment 3 _____18. AcquiescencebytheInternalRevenueServicesCommissionermeansthattheIRSwillfollowthedecisioninthefuture.ANSWER:TrueLO: 2.4DIFFICULTY: Easy_____19. TheGolsenrulerequirestheTaxCourttofollowallotherFederalDistrictCourtdecisionsinthesameCircuit.ANSWER: FalseLO: 2.4DIFFICULTY: Easy_____20. Amemotofileforaclientshouldbemoredetailedthantheclientletter.ANSWER: TrueLO: 2.4DIFFICULTY: EasyShort-answerQuestions: Provideabriefwrittensolutiontoeachofthefollowingquestions.1. Explainhowtaxcompliancediffersfromtaxplanning.ANSWER: Taxcomplianceconsistsofgathering, evaluatingandclassifyingtherelevantinformationforfilingataxpayerstaxreturn. Compliancedealsprimarilywithtransactionsthathavealreadytakenplace. Taxplanningistheprocessofevaluatingthetaxconsequencesassociatedwithatransactionthathasyettotakeplaceandmakingrecommendationsthatwillachievethedesiredobjectiveswiththeleasttaxcost. Taxplanningprimarilydealswithfuturetransactions. LO: 2.1 &2.3DIFFICULTY: Easy2. Explainwhatismeantbythestatuteoflimitations.ANSWER:Thestatuteoflimitationsistheperiodoftimebeyondwhichlegalactionsorchangestothetaxreturncannotbemadebyeitherthetaxpayerorthegovernment. Undermostcircumstances, theIRScannotchallengeataxreturnlaterthanthreeyearsafteritsduedateorthedateitwasfiled, iflater.LO: 2.1DIFFICULTY: Easy3. Explainthedifferencebetweentaxavoidanceandtaxevasion.ANSWER:Taxavoidanceisthelawfuluseandinterpretationofthetaxlawsinamannerthatminimizestaxes. Taxevasionisthedeliberateignoringofataxlawtoreducetaxesandisillegal.LO: 2.1 &2.2DIFFICULTY: Easy4. WhenmayaCPAuseestimatesinthepreparationofaclientstaxreturn?ANSWER:ACPAmayuseestimatestoprepareataxreturnwhenactualdataisunavailableatthetimeoffilingormissing. Ataxpayermayhavebeenthesubjectofacasualtylossthatdestroyedrecordsoracomputerfailuremaypreventtherecoveryofacompletesetoffinancialrecords. Insuchacase, thereturnshouldnotimplygreateraccuracythantheestimatespermit.LO: 2.2DIFFICULTY: Easy5. Whichtaxreturnpreparersarerequiredtoobtainpreparertaxidentificationnumbers?
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4Taxation for Decision Makers Test Bank ANSWER:Allpersonswhopreparetaxreturnsforpayment, orwhoemployoneormorepersonswhoarepaidforthepreparationofallorasubstantialportionofafederaltaxreturnorclaimforrefund, mustobtainaPTIN, aPaidPreparerTaxIdentificationNumber.
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