What steps need to be taken to ensure income is reasonably

Assignment Help Accounting Basics
Reference no: EM132744411

Problem 1: A taxpayer brings in a 1099NEC for $7,000 and states that they made an additional $10,000 in income, but do not have any documentation. What steps need to be taken to ensure income is reasonably accurate?

a. Ask the client how the amount was determined. Document both the question and the answer

b. Have taxpayer complete the Income Information Worksheet or other Reconstruction of Income

c. None, the taxpayer's statement is sufficient

d. Both a and b

Reference no: EM132744411

Questions Cloud

Traditional problem-deficit based organizational perspective : Reflect on the theory and practice of appreciative inquiry, vs. the traditional problem or deficit based organizational perspective.
Why business information should be appropriately managed : Why business information should be appropriately managed. Do you agree with the above statement? Elaborate your answers by providing THREE (3) justifications.
Explain the classification of service : Explain the classification of service based on intangibility through customer-driven strategy.
Make a journal of the trading company transactions : Feb 2, PT Buana sold merchandise in cash worth Rp. 3.8 million at the cost sales of Rp. 1.2 million. Make a journal of the trading company transactions
What steps need to be taken to ensure income is reasonably : An additional $10,000 in income, but do not have any documentation. What steps need to be taken to ensure income is reasonably accurate?
Implement to improve the likelihood that your communications : Identify what techniques you can implement to improve the likelihood that your communications will be received and understood as you intended.
Identify development opportunities to meet current : Identify development opportunities to meet current and future defined needs
What is the most common reason the irs assesses penalties : What is the most common reason the IRS assesses penalties to preparers during an audit? Failure to obtain full documentation of Schedule C income
Construct a personal development plan : Construct a personal development plan with achievable but challenging goals and Develop a business case to secure the resources to support

Reviews

Write a Review

Accounting Basics Questions & Answers

  What was the amount of actual sales

If the margin of safety for Watkins Company was 20%, fixed costs were $979, 200, and variable costs were 80% of sales, what was the amount of actual sales?

  Prepare the entry to close the firm income

Mark Albin, Roland Peters and Sam Ramsey invested $ 164,000, $ 98,400 and $ 65,600, respectively, in a partnership. During its first calendar year, the firm earned $ 270,000.

  How do you suggest they set up their business

These losses do not include either the rent or the mortgage payment. How do you suggest they set up their business? Should they buy or rent the building?

  Determine the percentage of Security costs

Costs from the Janitorial Department are allocated based on square feet. Determine the percentage of Security costs that should be allocated

  What is not a general function of blockchain technology

What is not a general function of blockchain technology? Ability to create value. / Generation of bitcoin. / uthenticate identities.

  Enciso corporation is preparing its cash budget for

enciso corporation is preparing its cash budget for november. the budgeted beginning cash balance is 31000. budgeted

  Assume you purchase a ticket to a local football game for

assume you purchase a ticket to a local football game for next week at a cost of 50. before the day of the game you are

  Decision making when choosing alternatives

The definition of relevant, as used in decision making when choosing among alternatives, connotes two concepts:

  Clark company manufactures a product with a standard direct

edgar inc. has a materials price standard of 2.00 per pound. six thousand pounds of materials were purchased at 2.20 a

  What is the amount of cash disbursement per book in April

All reconciliation items on March 31 cleared through the bank in April. What is the amount of cash disbursement per book in April

  Find what is amount of total liabilities at the end of year

If total assets decreased $81,000 and owner's equity increased $86,000 during the year, what is the amount of total liabilities at the end of the year?

  Problem regarding the percent of the population

Evaluate the following statement: "Policies to redistribute income are desperately needed in the United States. Without such policies, the roughly 15 percent of the population that is currently poor has no hope of ever climbing above the poverty l..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd