By comparing the taxpayer ratios to IRS SOI (highlighted) ratios, answer (in two paragraphs) the following questions:

1. Does it appear that the Clients might have forgotten to report any income or deductions based on the SOI data?
2. Do you feel that anything is unusual enough that the IRS may take notice?

Form Line 1040 1 1040 2b 1040 3b Taxpayer Numbers Ratio's 130,000 83.15% 1,200 0.77% 2,221 1.42% 1,821 1.16% 1,500 0.96% 25,379 16.23% (3,000) -1.92% 840 0.54% Wages Interest Ordinary Dividends Qualified Dividends State and Local Refunds Business Income Net Capital Gains Passive Income IRS SOI Average Ratio's Numbers 84.86% 115,071 0.91% 1,232 4.08% 5,536 3.30% 4,468 0.49% 659 12.32% 16,712 5.33% 7,221 16.80% 22,780 1040 Schedule 1 1 3 Schedule 1 1040 Schedule 1 6 5 TOTAL INCOME 1040 7b 158,140 101.15% 101.15% 137,154 For AGI Deductions Total Statutory Adjustments Schedule 1 22 1,793 1.15% 3.18% 4,317 AGI 1040 8b 156,347 100.00% 100.00% 135,598 7 Itemized Deductions - Schedule A Total Tax Deduction Mortgage Interest Total Charitable Contributions Schedule A Schedule A Schedule A 10 10,000 11,610 2,800 6.40% 7.43% 1.79% 7.37% 5.84% 2.77% 10,000 7,914 3,756 14 Total Itemized Deductions 1040 9 24,410 15.61% 18.12% 24,575 Taxable Income 1040 11b 131,937 84.39% 76.24% 103,377 1040 12b 3 Income Tax Before Credits Nonrefundable Education Credits Child Tax Credit SE Tax Schedule 3 1040 Schedule 2 20,772 1,500 2,500 3,586 13.29% 0.96% 1.60% 2.29% 13.33% 1.10% 1.00% 18,070 1,497 1,354 3,971 13a 4 2.93% Total Tax Liability 1040 16 20,358 13.02% 13.42% 18,201 1040 18C 1,000 0.64% Refundable Education Credit Total Tax Payments 0.74% 14.65% 1,008 19,871 1040 19 30,000 19.19% Refund 1040 20 9,642 6.17% 3.25% 4,411 Form Line 1040 1 1040 2b 1040 3b Taxpayer Numbers Ratio's 130,000 83.15% 1,200 0.77% 2,221 1.42% 1,821 1.16% 1,500 0.96% 25,379 16.23% (3,000) -1.92% 840 0.54% Wages Interest Ordinary Dividends Qualified Dividends State and Local Refunds Business Income Net Capital Gains Passive Income IRS SOI Average Ratio's Numbers 84.86% 115,071 0.91% 1,232 4.08% 5,536 3.30% 4,468 0.49% 659 12.32% 16,712 5.33% 7,221 16.80% 22,780 1040 Schedule 1 1 3 Schedule 1 1040 Schedule 1 6 5 TOTAL INCOME 1040 7b 158,140 101.15% 101.15% 137,154 For AGI Deductions Total Statutory Adjustments Schedule 1 22 1,793 1.15% 3.18% 4,317 AGI 1040 8b 156,347 100.00% 100.00% 135,598 7 Itemized Deductions - Schedule A Total Tax Deduction Mortgage Interest Total Charitable Contributions Schedule A Schedule A Schedule A 10 10,000 11,610 2,800 6.40% 7.43% 1.79% 7.37% 5.84% 2.77% 10,000 7,914 3,756 14 Total Itemized Deductions 1040 9 24,410 15.61% 18.12% 24,575 Taxable Income 1040 11b 131,937 84.39% 76.24% 103,377 1040 12b 3 Income Tax Before Credits Nonrefundable Education Credits Child Tax Credit SE Tax Schedule 3 1040 Schedule 2 20,772 1,500 2,500 3,586 13.29% 0.96% 1.60% 2.29% 13.33% 1.10% 1.00% 18,070 1,497 1,354 3,971 13a 4 2.93% Total Tax Liability 1040 16 20,358 13.02% 13.42% 18,201 1040 18C 1,000 0.64% Refundable Education Credit Total Tax Payments 0.74% 14.65% 1,008 19,871 1040 19 30,000 19.19% Refund 1040 20 9,642 6.17% 3.25% 4,411