Austin Towers is a convicted former spy for the former Soviet Union. Austin received a communication from

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Austin Towers is a convicted former spy for the former Soviet Union. Austin received a communication from a Soviet agent that $2 million had been set aside for him in an account upon which he would be able to draw. Austin was told that the money was being held by the Soviet Union, rather than in an independent or third-party bank or institution, on the petitioner’s behalf. Over the next few years, Austin drew approximately

$1 million from the account. During that period, Austin filed annual tax returns with his wife showing taxable income of approximately $65,000 per year. Conduct appropriate research to determine Austin’s tax liability for the $1 million in spy fees.

After appropriate research, write a letter to Austin explaining your findings. His address is Lompoc Federal Prison, Cell #123, Lompoc, CA 93401.

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Federal Tax Research

ISBN: 9781111221645

9th Edition

Authors: William Raabe, Gerald Whittenburg, Debra Sanders, Roby Sawyers, Steven Gill

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