Question
1. Assume the current date is 3/25/2018 .Tom, a new tax client, has hired you to prepare his 2017 income tax return.Upon reviewing his old
1.Assume the current date is 3/25/2018.Tom, a new tax client, has hired you to prepare his 2017 income tax return.Upon reviewing his old returns, you noticed many errors.How would you answer the following questions?
a. When is Tom's 2017 federal income tax return due?
b. You determined that Tom has overpaid his tax on his 2014 Income Tax return because he failed to deduct his medical expenses.The additional tax refund to Tom would be $ 1,800.Tom filed his 2014 tax return on 3/1/2015.What is your advice?
c. Tom's 2013 income tax return contained an error in calculating a deduction.He underpaid his tax by $ 250, and is worried that the IRS will come after him.Tom filed the return on 7/18/2014.Does Tom have cause for concern?
d. After talking about the 2013 return, Tom told you that he also had an issue on his 2012 return which was filed on 2/20/2013.The Gross income reported on his tax return was $ 50,000.Tom explained that he inadvertently left off $ 15,000 in income from the return believing that it was tax free.After discussing the item with you he now realizes this was taxable.Does Tom have cause for concern?
e. You complete Tom's 2017 tax return and he owes an additional $ 18,000 in tax.Tom tells you to file an extension, because he cannot pay the amount due in full.What is your advice to Tom?
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