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goldenfox [79]
4 years ago
9

Your tax client Chen asks whether it is likely that her Form 1040 will be audited this year. You suspect that Chen might modify

the information she reports on her return based on your answer. Address Chen's question, and provide her with a justification to comply fully with the tax law's reporting requirements.
About 1% of (all corporate tax returns/ all individual tax returns/ all tax returns) are audited in a given tax year. However, certain types of both taxpayers and income are subject to much higher probabilities of audit. The ethical tax professional (does/ does not) play the "audit lottery" and lower his or her reporting standards because of a perception that such actions "will not be caught." In addition, the tax professional (should/ should not) allow clients to do so.

For example, the IRS has developed ways of (document matching/ maximizing income) where Treasury can determine if a transaction has been properly reported by comparing (related party information/ third party information/ yearly averages) to relevant taxpayers' returns for the year.
Business
1 answer:
kozerog [31]4 years ago
5 0

Answer:

Fewer than 1% of all individual tax returns are audited in a given tax year. However, certain types of both taxpayers and income—including, for instance, high-income individuals, cash- oriented businesses, real estate transactions, and estate- and gift-taxable transfers—are subject to much higher probabilities of audit. The ethical tax professional does not "play the audit lottery" and lower his/her reporting standards because of a perception that such actions "will not be caught," nor should the tax professional allow clients to do so.

Explanation:

Fewer than 1% of all individual tax returns as well as all corporate tax return are been audited in a given tax year.

However, certain types of both taxpayers and the income for example high-income individuals, cash- oriented businesses, real estate transactions, estate as well as gift-taxable transfer are often subject to much higher probabilities of audit.

Furthermore the ethical tax professional does not "play the audit lottery" and lower his/her reporting standards because of a perception that such actions "will not be caught," nor should the tax professional allow clients to do so which is why thethe IRS has developed ways of document matching/ maximizing income in which Treasury can help determine if a transaction has been properly and effectively reported by comparing all related party information, third party information and yearly averages to relevant taxpayers' returns for the year.

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Brenda has been offered choices when selecting her benefits. She knows she wants health insurance, is unsure of vision insurance
tatuchka [14]

Answer:

The correct answer is flex-plans.

Explanation:

These plans allow employees to choose the benefits they prefer or want, instead of being selected by the organization's administration. In this way the employee adapts the benefits package to his needs. For example, an employee in the manufacturing area who has great concern for his well-being or health, might prefer the benefit of additional life insurance.

In short there are many alternative benefits for which they can opt.

The precise advantages of these plans and consequently the reasons why they are becoming increasingly popular are:

1. They allow employees to make relevant decisions about their individual finances and balance requirements with benefit plans.

2. Plans help organizations control costs, especially health. This is because managers can define the maximum amount they will use in each benefit. In other words, flexible payment plans often produce savings for organizations.

3. These plans become instruments to control and keep employees.

For employees, flexibility can be attractive, since in this way they can design their benefits and coverage levels based on their own requirements, therefore, in this sense, benefit plans become an advantage for them.

7 0
4 years ago
According to​ economists, an efficient tax is one that A. maximizes tax revenue for government. B. is relatively easy to collect
k0ka [10]

Answer:

The correct answer is D. imposes a small deadweight loss relative to the tax revenue it raises.

Explanation:

By not discouraging the activity, it is understood that taxes should not distort the economic decisions of the individuals subject to taxation. In the theory of Public Finance the inefficiency of taxation can be analyzed through the so-called "excess tax", as a quantification of the loss of utility generated by a distorting tax. The excess of tax arises because the loss of total welfare generated by the tax on the individual with the modification in their behavior, is greater than the mere loss of welfare caused by the decrease in disposable income that comes with the payment of the tax. The value of excess tax that is generated by the substitution effect is greater the higher the tax rate and elasticity (Musgrave, 1986). Therefore, the relationship of exchange between efficiency and equity is not so simple for governments when designing their fiscal policy.

6 0
4 years ago
A student who has a strategic approach to studying for exams and preparing for presentations in college will likely do what as a
ki77a [65]

Answer:

implement strategic process/behavior/models that will achieve desired result/outcome

Explanation:

As a student, he/she became a strategist in preparations for exams and presentation and it has the desired outcome (success). When such a student becomes a manager, he/she would also apply the same strategic behaviour from college by mapping out strategies to ensure desired results as a manager.

Cheers.  

4 0
4 years ago
What word sounds like tapestry
Alex Ar [27]

Answer: Pastry

Explanation:

It sounds the same

7 0
3 years ago
You have just purchased ten municipal bonds, each with a $1,000 par value, for $9,500. You purchased them immediately after the
larisa86 [58]

Answer:

$12,663.26

Explanation:

The computation of the minimum selling price is shown below

Semi-annual  = 12% ÷ 2 = 6%

Semi-annual compounding periods = 5 × 2 = 10

Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% x (1 ÷ 2) = $330

as we know that

We assume the selling price be S

Present worth (PW) of the bond= PW of future cash flows

$9,500 = $330 × P/A(6%, 10) + S × P/F(6%, 10)

$9,500 = $330 × 7.3601 + S × 0.5584

$9,500 = $2,428.83 + S × 0.5584

S × 0.5584 = $7,071.17

= $7,071.17 ÷ 0.5584

= $12,663.26

5 0
3 years ago
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