Assignment 5 : Audit Letter to IRS
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Due Week 10 and worth 160 points You are a CPA working as a tax professional and have been hired by a client who comes to you with a letter from the IRS indicating that it is auditing several items on the client ’ s tax return and making the following assertions : 1 . The method the client used to value foreign currency exchanges is incorrect . 2 . An undervalued international exchange of appreciated property should show a larger gain . 3 . Sales through export operations were underreported and revenue is understated . 4 . The transfer of intangible property for stock was undervalued and results in a larger gain . 5 . Investments made to another country were done through a subsidiary and not a branch and are taxable as such . Using the Internet or Strayer databases , research the rules regarding the above types of transactions . Write a one to two ( 1-2 ) page paper in which you : 1 . Respond to the assertions by the IRS and counter those assertions with your own . Provide support for the rationale used in the response . 2 . Make a convincing argument that the information / documentation your client possesses justifies and supports the client ’ s claim . Provide supporting evidence for your argument . 3 . Use at least two ( 2 ) quality resources in this assignment . Note : Wikipedia and similar Websites do not qualify as quality resources . Your assignment must follow these formatting requirements :
· Be typed , double spaced , using Times New Roman font ( size 12 ), with one-inch margins on all sides ; citations and references must follow APA or school-specific format . Check with your professor for any additional instructions .