Exam (elaborations)
Chapter 1 question n answers graded A+ 2023
- Course
- Institution
Exam of 0 pages for the course COPC at COPC (Chapter 1)
[Show more]
Content preview
Chapter 1Tax compliance consists of what two separate but related components? - correct answer Tax return preparation and the preparation of the tax provision on a company's financial statements (for corporate entities)
Tax return prep consists of - correct answer gathering pertinent information, the evaluation and classification of such information, and filing the necessary tax returns with the appropriate gov't agency
T/F: A corporation's income tax expense as reported on its financial statements is often different from the income tax on its tax return. - correct answer True. FS are prepared using GAAP rather than the tax law
Tax planning - correct answer the process of arranging one's financial affairs to minimize tax liabilities
Tax avoidance - correct answer a legitimate objective of modern tax practice
Tax evasion - correct answer the illegal non payment of a tax
Two categories of tax planning - correct answer open transactions & closed transactions
Open transaction - correct answer the transaction is not yet completed so the tax practitioner maintains some degree of control over the potential tax liability because the transaction is not yet completed
Closed transaction - correct answer all of the pertinent actions have been completed; therefore, tax planning may be limited to the presentation of the facts to the government in the most favorable, legally acceptable manner possible
In a ___ transaction, the tax practitioner maintains some degree of control over the potential tax liability.
- correct answer Open Tax litigation - correct answer the process of settling a dispute with another party in a court of law
Tax research - correct answer undertaken to answer taxation questions
Tax research process - correct answer 1) ID pertinent issues
2) Determine the proper authorities
3) Evaluation of the appropriateness of these authorities
4) Application of these authorities
Tax practitioners are regulated by ___ - correct answer Circular 230
Certified public accountants who are members of the AICPA must follow - correct answer the Code of Professional Conduct and any other rules generated by the state board(s) of accountancy
Statements on Standards for Tax Services (SSTS) - correct answer Contains advisory guidelines for AICPA members who prepare tax returns
CIrcular 230 - correct answer - constitutes Part 31 of the Treasury Department Regulations
- designed to provide protection to TPs and the IRS by requiring tax preparers to be technically competent and to adhere to ethical standards
Who may practice before the IRS, according to Circular 230 sec. 10.3 - correct answer - attorneys
- CPAs
- enrolled agents
- enrolled actuaries
- enrolled retirement plan agents
- registered tax return preparers
Enrolled agent - correct answer someone who has either passed a special IRS exam or worked for the IRS
for 5 years
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kirus27. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now