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56: With regard to the IRS audit process, comment on the following: The audit is resolved by mail. The audit is conducted at the office

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56: With regard to the IRS audit process, comment on the following: The audit is resolved by mail. The audit is conducted at the office of the IRS. A "no change RAR results, A special agent joins the audit team. 48. Discuss the probable justification for each of the following aspects of the tax law: a. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. b. Deductions for interest on home mortgage and property taxes on a personal residence. . The income-splitting benefits of filing a joint return. d. Fines and penalties are not deductible. e. Net operating losses of a current year can be carried forward to profitable years. 1. A taxpayer who sells property on an installment basis can recognize gain on the sale over the period the payments are received. 2. The exclusion from Federal tax of certain interest income from state and local bonds. h. Prepaid income is taxed to the recipient in the year received and not in the year earned. Part 2:41: Using the legend provided, classify each of the following tax sources: P= Primary tax source S = Secondary tax source B-Both N-Neither a. Sixteenth Amendment to the U.S. Constitution. b. Tax treaty between the United States and India. c. Revenue Procedure. d. An IRS publication. c. U.S. District Court decision. 1. Yale Law Journal article. Temporary Regulations (issued 2018). h. U.S. Tax Court Memorandum decision. 1. Small Cases Division of the U.S. Tax Court decision. J. House Ways and Means Committee report. 48: Using the legend provided, classify each of the following statements: A=Tax avoidance E = Tax evasion N= Neither a. Sue writes a $707 check for a charitable contribution on December 26, 2019, but does not mail the check to the charitable organization until January 10, 2020. She takes a deduction in 2019. b. Sam decides not to report interest income from a bank because the amount is only $19.75. 6. Harry pays property taxes on his home in December 2019 rather than waiting until February 2020. d. Variety switches her investments from taxable corporate bonds to tax-exempt municipal bonds. . Mel encourages his mother to save most of her Social Security benefits so that he will be able to claim her as a dependent

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