For the Following Tax Returns, Identify Which of the Three

question 53

Essay

For the following tax returns, identify which of the three audit types will most likely be utilized.
a. The IRS selected Don's return for audit because of his high itemized deductions. The IRS would like documentation of these deductions.
b. Large Public Corporation is a very large publicly traded corporation. It is involved in many complex transactions that have significant tax ramifications.
c. George and Barbara operate a small business out of their home. The IRS has identified a couple of issues that may relate to their business.
d. The IRS selected Bill and Hillary's tax return for review because of some of their investment sales. They would like a better understanding of the transactions and parties involved.

---

Definitions:

Health Care Technology

The application of organized knowledge and skills in the form of devices, medicines, vaccines, procedures, and systems developed to solve a health problem and improve quality of lives.

Positive Attitude

A mental state or disposition that focuses on the good and positive aspects of a situation.

Overconfident Attitude

The state of being excessively confident without adequate reason or evidence.

Medical Practice

The work or profession of providing medical care to patients, including diagnosis, treatment, and surgery.