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.

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Definitions:

Criteria Section

A segment within a document that outlines the specific standards or benchmarks used to evaluate or assess the subject matter.

Methods Section

The section of a report or survey describing how the data were gathered.

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A small, unforeseen fault in a system or machine that causes a temporary setback.

Progress Report

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