Tranquility funeral home inc your client is an accrual

Reference no: EM13585598

Tranquility Funeral Home Inc, your client, is an accrual basis taxpayer that sells preneed funeral contracts. Under these contracts the customer pays in advance for goods and services to be provided at the contract beneficiary's death. These payments are refundable at the contract purchaser's request, pursuant to state law, any time until the goods and services are furnished. Tranquility, consistent with its financial accounting reporting, includes the payment in income for the year the funeral service is provided. The IRS agent insists that the payments be prepaid income subject to tax in the year of receipt. Your client believes that the amounts involved are customer deposits. Write a letter to Tranquility that contains your advice about how the issue should be resolved. The address is 400 Rock Street, Memphis TN 38152

Reference no: EM13585598

Questions Cloud

Cash receipts comes in to credit dept which separates the : identifying and correcting internal control suppose a car dealership is opening a regional office in texas. linda

An earthquake produces two basic types of waves surface : an earthquake produces two basic types of waves surface waves and bulk waves. the former move along the surface of the

Fungi in ectomycorrhizae are generally less host specific : 1. fungi in ectomycorrhizae are generally less host specific than those participating in vesicular-arbuscular

Calculate the total amount of acid in moles in the : determine a value of kc for the equilibrium which is established when ethanol reacts with ethanoic acid.ch3cooh

Tranquility funeral home inc your client is an accrual : tranquility funeral home inc your client is an accrual basis taxpayer that sells preneed funeral contracts. under these

1 a capacitor in an rc circuit is charging which one of the : 1. a capacitor in an rc circuit is charging. which one of the following statements is correct?a there is a magnetic

The supplies account shows a balance of 540 but a count of : the supplies account shows a balance of 540 but a count of supplies reveals only 210 on hand at year end. which of the

An aeroplane flies from a to b at the rate of 500kmhr and : an aeroplane flies from a to b at the rate of 500kmhr and comes back from b to a at the rate of 700kmhr. what is the

Based on the following information what is the total equity : based on the following information what is the total equity at the end of 2013? the following is selected financial

User Account

All Pages