Tax return review procedure: You will be looking for four kinds of errors: amounts that are treated incorrectly according to tax law amounts that are left off the forms amounts that are put into the forms incorrectly math errors DO NOT count sequential errors separately: for example if interest is reported wrong, that will effect AGI, taxable income and the tax calculation. Do not count this as 3 errors. The error would be that interest is reported wrong. There are no errors in the personal information- name, address, Social Security number, etc. 1. Read the fact pattern. 2. Look at the source documents 3. Trace each number on the return back to either the fact pattern or the source documents 4. Be sure to look for carryforward amounts 5. Check calculations: Check for math errors on the forms The tax calculation is wrong- do not include it as one of your errors Submit a Word document listing the errors you found. Do not recalculate the tax on the return and do not count sequential errors. Be sure to list all members of your group on your error document. SEE BELOW FOR THE W-25. There are no errors in the personal information (name, address, etc) All other information should come from the fact pattern below: The Smiths had taxable interest of $1,000. They had tax exempt interest of $500. The Smiths had total dividends of $2,000. This consisted of $1500 in qualified dividends and $500 in ordinary dividends. The Smiths received a state tax refund of $500. Last year they itemized and their itemized deductions exceeded the standard deduction by $225. Robyn Smith received worker's compensation in the amount of $3,000 during the year. Terry Smith was the beneficiary of his mother's life insurance policy. He received $10,000 during the year. Robyn Smith paid alimony to her previous spouse (Social Security number 203-55-7899) in the amount of $10,000. She was divorced in 2017. The Smiths had the following investment transactions: Blue Stock purchased 2/15/17 for $1500 sold 5/16/19 for $2,000 Red Stock purchased 6/12/18 for $500 sold 12/19/19 for $400 Green stock purchased 5/1/18 for $2,000 sold 5/1/19 for $2,500 Black stock purchased 8/1/19 for $1,500 sold 12/1/19 for $2,000 Red Stock purchased 12/1/19 for $450 sold 12/30/19 for $600 The Smiths have a long term capital loss carryover of $500 from 2018. The Smiths have provided the following information about possible itemized deductions: Doctor visits $200 Contacts $500 ER visit $500 Real estate taxes $6,400 Property taxes $3,600 Home Mortgage $5,000 Donation to various public Charities $8,000 22222 . Employee's social security number 343-88-9259 Employer Identificaten aber TEIN 71-0543971 e Employer's name, address and ZP code The Green man 2319 Colfax Denver, CO 87/13 Convol number OMB No. 1545-0006 1 Wegns, ups, other compensation 36200.on 3 Social Security woges 56,200.00 Medicar wages and up 56.200.00 Sodle skutty tips 2 Federal income tax withheld 8430.00 4 Social security 3484.00 Magicaelax withheld 815100 Allocated lips Varlestoncede 10 Dependent care benefita . Employee's first name and in Last name Sufl. 11 Nonqualind plona 120 ve Dep 12b Terry Smith 4799 Pine Street Littleton. C087123 14 Other 120 1 Employee's address and MP code 16 to Employer's stato lo number Suna wages.p. o. 18 Local weg. 1. t. 19 Local income 17 Sale income in 54,200.00 2148.00 20 Lt W-2 Statement Wage and Tax Form Copy 1-Far Stale, Chy, or Local Tax Department Department of the Treasury Intemal Revenue Service 2019 47% 1:07 AM Touch to return to call 06:59 Extra credit review return.pdf Extra credit review return.pdf 22222 . Er 315-88-1945 71-6974329 Star buds 147 Hwy Aurora, in 87219 82.500.00 82.500.00 82500.00 Society 10.380.00 5115.00 1196.00 GO UN Robyn smith 4793 Ane Street Littleton, CO 87123 Wewe By www 82500.00 2475.00 W-2 Wade and Tax 2019 Copy For St, Gly, or Local To Department Tax return review procedure: You will be looking for four kinds of errors: amounts that are treated incorrectly according to tax law amounts that are left off the forms amounts that are put into the forms incorrectly math errors DO NOT count sequential errors separately: for example if interest is reported wrong, that will effect AGI, taxable income and the tax calculation. Do not count this as 3 errors. The error would be that interest is reported wrong. There are no errors in the personal information- name, address, Social Security number, etc. 1. Read the fact pattern. 2. Look at the source documents 3. Trace each number on the return back to either the fact pattern or the source documents 4. Be sure to look for carryforward amounts 5. Check calculations: Check for math errors on the forms The tax calculation is wrong- do not include it as one of your errors Submit a Word document listing the errors you found. Do not recalculate the tax on the return and do not count sequential errors. Be sure to list all members of your group on your error document. SEE BELOW FOR THE W-25. There are no errors in the personal information (name, address, etc) All other information should come from the fact pattern below: The Smiths had taxable interest of $1,000. They had tax exempt interest of $500. The Smiths had total dividends of $2,000. This consisted of $1500 in qualified dividends and $500 in ordinary dividends. The Smiths received a state tax refund of $500. Last year they itemized and their itemized deductions exceeded the standard deduction by $225. Robyn Smith received worker's compensation in the amount of $3,000 during the year. Terry Smith was the beneficiary of his mother's life insurance policy. He received $10,000 during the year. Robyn Smith paid alimony to her previous spouse (Social Security number 203-55-7899) in the amount of $10,000. She was divorced in 2017. The Smiths had the following investment transactions: Blue Stock purchased 2/15/17 for $1500 sold 5/16/19 for $2,000 Red Stock purchased 6/12/18 for $500 sold 12/19/19 for $400 Green stock purchased 5/1/18 for $2,000 sold 5/1/19 for $2,500 Black stock purchased 8/1/19 for $1,500 sold 12/1/19 for $2,000 Red Stock purchased 12/1/19 for $450 sold 12/30/19 for $600 The Smiths have a long term capital loss carryover of $500 from 2018. The Smiths have provided the following information about possible itemized deductions: Doctor visits $200 Contacts $500 ER visit $500 Real estate taxes $6,400 Property taxes $3,600 Home Mortgage $5,000 Donation to various public Charities $8,000 22222 . Employee's social security number 343-88-9259 Employer Identificaten aber TEIN 71-0543971 e Employer's name, address and ZP code The Green man 2319 Colfax Denver, CO 87/13 Convol number OMB No. 1545-0006 1 Wegns, ups, other compensation 36200.on 3 Social Security woges 56,200.00 Medicar wages and up 56.200.00 Sodle skutty tips 2 Federal income tax withheld 8430.00 4 Social security 3484.00 Magicaelax withheld 815100 Allocated lips Varlestoncede 10 Dependent care benefita . Employee's first name and in Last name Sufl. 11 Nonqualind plona 120 ve Dep 12b Terry Smith 4799 Pine Street Littleton. C087123 14 Other 120 1 Employee's address and MP code 16 to Employer's stato lo number Suna wages.p. o. 18 Local weg. 1. t. 19 Local income 17 Sale income in 54,200.00 2148.00 20 Lt W-2 Statement Wage and Tax Form Copy 1-Far Stale, Chy, or Local Tax Department Department of the Treasury Intemal Revenue Service 2019 47% 1:07 AM Touch to return to call 06:59 Extra credit review return.pdf Extra credit review return.pdf 22222 . Er 315-88-1945 71-6974329 Star buds 147 Hwy Aurora, in 87219 82.500.00 82.500.00 82500.00 Society 10.380.00 5115.00 1196.00 GO UN Robyn smith 4793 Ane Street Littleton, CO 87123 Wewe By www 82500.00 2475.00 W-2 Wade and Tax 2019 Copy For St, Gly, or Local To Department