Business Finance Homework Help

Part 1

Prior to beginning work on this discussion forum, review the publication by the Internal Revenue Service (IRS), The Truth about Frivolous Arguments (Links to an external site.).

In your reading, you’ve learned about the consequences associated with frivolous tax positions, including the following:

Penalties for failure to file

Penalties for failure to pay

Accuracy related penalties

Fraud related penalties

Penalties for erroneous claims

The IRS maintains a publication titled, The Truth about Frivolous Arguments (Links to an external site.). Select one of the contentions covered in the document. Summarize the common taxpayer argument, along with the relevant primary sources which prove it to be a frivolous argument. If a client came to you and proposed one of these frivolous positions, how might you address their request?

Your post should be 200 to 250 words in length.

Part 2

Prior to beginning work on this discussion forum, review the report, The National Taxpayer Advocate Annual Report to Congress (Links to an external site.). This report examines the problems and issues faced by taxpayers, most frequently litigated tax issues, research, and related studies.

According to the report, The National Taxpayer Advocate Annual Report to Congress (Links to an external site.), the most litigated tax issues include:

Trade or business expenses under IRC §162 and related sections.

Appeals from collection due process hearings under IRC §6320 and 6330.

Accuracy-related penalty under IRC §6662(b)(1) and (2).

Gross income under IRC §61 and related sections.

Summons enforcement under IRC §7602, 7604, and 7609.

Civil actions to enforce federal tax liens or to subject property to payment of tax under IRC §7403.

Failure to file penalty under IRC §6651(a)(1)a, failure to pay an amount shown as tax on return under IRC §6651(a)(2), and failure to pay estimated tax penalty under IRC §6654.

Itemized deductions reported on Schedule A (Form 1040).

Charitable contributions deductions under IRC §170.

Select one of these issues to research. In your post, discuss why there are so many cases surrounding the issue. What are the primary areas of concern? How might a tax practitioner educate or advise their clients in this area to prevent potential litigation or challenges from the IRS?

Your post should be 200 to 250 words in length.