Since their taxes are becoming more complex, Jeffrey and Karen are concerned about making a mistake or getting audited. They should

Karen and her husband, Jeffrey, are facing a new income tax situation this year. She is a corporate accountant and Jeffrey is an engineer. Their gross salaries total $89,000. Both graduated from four-year universities five years ago and are still paying off large student loans. She is now attending school part-time to prepare for the CPA exam. The Bosteins incurred considerable expenses in the process of adopting an infant this year, and they have the ongoing expense of daycare. In January of last year they closed on their new home. Although trained as an accountant, Karen's work has not involved income tax preparation. Help them consider the following questions.

A) consult IRS Publication 17, Your Federal Income Tax, the IRS toll-free "hotline," or one of the self-help tax publications to learn more about their tax situation.
B) choose an independent tax specialist to prepare their taxes, because there is more consistency in their training and the quality for their work than that of nationally affiliated specialists.
C) remember that the key to winning an audit is good records to verify the tax form information.
D) Only choices A and C.
E) All of the above choices.


Answer: D

Business

You might also like to view...

What is the main idea underlying responsibility accounting?

Business

The safest place to get a mortgage is at your bank, credit union, or savings and loan institution

Indicate whether this statement is true or false.

Business

_________ and __________ are two of the criteria managers should use to determine when to involve employees in decision making.

a. Culture; cost b. Efficiency; effectiveness c. Leader style; financial issues d. Task complexity; time

Business

The Commerce Clause requires Congress and the states to share the power to regulate domestic business

a. True b. False Indicate whether the statement is true or false

Business