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.