Prepare a memo for your file regarding the new regulations

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Question:

It is December, and tax season is just around the corner. You expect a large clientele this tax season, and you will be filing tax returns for a variety of business entities. You decide to get your office ready by having a copy of all of the various tax forms on hand along with relevant publications.

In addition, you read a recent article that the Internal Revenue Service (IRS) is implementing new rules for paid preparers. You decide to research the new requirements and prepare a memorandum for future reference.

Part 1

Deliverable Length: 250-300 words

Use this Web site to determine the form(s) required to file income taxes for the following business entities:

Sole proprietorship

Partnership

Corporation

S Corporation

Download the current form and instructions (you will refer to these in later assignments).

Use the instructions for each form to prepare a tax guide that you will use during tax season. The tax guide should have the following information for each business entity:

Tax form or schedule used to report the profit or loss from a business

When the tax form must be filed

Where the tax form must be filed based on the state

An IRS publication that will provide supplemental federal income tax information about the business entity

Part 2

Deliverable Length: 250-300 words

Use the following Web site to prepare a memo for your file regarding the new regulations for paid preparers for future reference:

Web site:

https://www.irs.gov/uac/Newsroom/IRS-Unveils-Filing-Season-Program-for-Tax-Return-Preparers,-Answers-Frequently-Asked-Questions

Verified Expert

The Federal income tax has 7 tax brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your filing status and income level. It’s important to realize that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular tax bracket is subject to that particular tax rate.

Reference no: EM131341842

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