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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.