Individual Income Taxes 2020

CHAPTER 1 An Introduction to Taxation and Understanding the Federal Tax Law 36. LO.5 With regard to the IRS audit process, comment on the following: a. The audit is resolved by mail. b. The audit is conducted at the office of the IRS. c. A "no change" RAR results. d. A special agent joins the audit team. 37. LO.5 Aldo has just been audited by the IRS. He does not agree with the agent's findings but believes that he has only two choices: pay the proposed deficiency or resort to the courts. Do you agree with Aldo's conclusion? Why of why not? 38. LO.5 What purpose is served by a statute of limitations? How is it relevant in the case of tax controversies? 39. LO.5 Regarding the statute of limitations on additional assessments of tax by the IRS, determine the applicable period in each of the following situations. As sume a calendar year individual with no fraud or substantial omission involved. a. The income tax return for 2018 was filed on February 19, 2019. b. The income tax return for 2018 was filed on June 25, 2019. c. The income tax return for 2018 was prepared on April 4, 2019, but was never filed. Through some misunderstanding between the preparer and the taxpayer, each expected the other to file the return. d. The income tax return for 2018 was never filed because the taxpayer thought no additional tax was due. northynayer, files her income tax return for 2018 on at receive