TAX COMPLIANCE, THE IRS, AND TAX AUTHORITIES精选.pdfVIP

chapter 2 Tax Compliance, the IRS, and Tax Authorities Learning Objectives Upon completing this chapter, you should be able to: LO 2-1 Identify the filing requirements for income tax returns and the statute of limitations for assessment. LO 2-2 Outline the IRS audit process, how returns are selected, the different types of audits, and what happens after the audit. LO 2-3 Evaluate the relative weights of the various tax law sources. LO 2-4 Describe the legislative process as it pertains to taxation. LO 2-5 Perform the basic steps in tax research and evaluate various tax law sources when faced with ambiguous statutes. LO 2-6 Describe tax professional responsibilities in providing tax advice. LO 2-7 Identify taxpayer and tax professional penalties. ill and Mercedes received a notice from B the Internal Revenue Service (IRS) that their return is under audit for certain interest deductions. As you might expect, they are quite concerned, especially because it has been several years since they claimed the deductions and they worry that all their supporting documentation may not be in place. Several questions run through their minds. How could the IRS audit a return that was filed so long ago? Why was their tax return selected, and what should they expect during the audit? The interest deductions they reported were based on advice from their CPA. What would cause the IRS and a CPA to interpret the law differently? What is their financial exposure if the deductions are ultimately disallowed? Will they have to pay interest and penalties in addition to the tax they might o