By comparing the taxpayer ratios to IRS SOI (highlighted) ratios, answer (in two paragraphs) the following questions: PLEASE ANSWER IN DETAILS
- Does it appear that the Clients might have forgotten to report any income or deductions based on the SOI data?
- 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
