11
CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE

CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

Embed Size (px)

DESCRIPTION

THE ADMINISTRATION OF THE FEDERAL TAX LAWS l Compilation of tax statutes enacted by Congress

Citation preview

Page 1: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

CHAPTER EIGHT

OVERVIEW OF TAX PROCEDURE

Page 2: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

EXPECTED LEARNING OUTCOMES

Appreciate and understand: The voluntary nature of federal tax

reporting The basic tax return filing requirements The IRS audit and appeals process Available court forums The tax penalty provisions Available privileges

Page 3: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

THE ADMINISTRATION OF THE FEDERAL TAX LAWS

Compilation of tax statutes enacted by Congress

Page 4: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

ADMINISTRATION OF THE FEDERAL TAX LAWS

C h ie f C ou n se l

IR S C om m iss ion e rC ou rt C ases

O vers ig h t B oard

In te rn a l R even u e S ervice

S E C R E TA R Y O F TH E TR E A S U R Y

Page 5: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

VOLUNTARY COMPLIANCE BY TAXPAYER - THE TAX RETURN

Requirements: Must use correct form Must include sufficient information

to compute tax liability Must be signed under penalty of

perjury

Page 6: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

Filing Return and Payment of Taxes

Must be timely filed

Tax liability must be paid by return due date without regard to extensions

Page 7: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

COMPLIANCE VERIFICATION -THE IRS AUDIT PROCESS

Audit must occur within the statute of limitation period

Audit types include• Letter audit• Office audit• Field audit

Page 8: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

Procedure When IRS Finds Taxpayer Position Incorrect

Taxpayer signs w aiver

IR S b eg in sC o llec t ion s

Taxpayer takes no action

Tax C ou rtL it ig a t ion

Taxpayer files petition inTax Court w ithin 90

days

N inety-day Letter M ailed by IRS(S ta tu tory N o tice o f D e fic ien cy)

Taxpayer takes no action Taxpayer files protest

Thirty-Day Letter Mailed by IRS

Page 9: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

Failure to do the following will result in the imposition of penalties:• Provide copy of return to taxpayer• Sign return• Accurately report amount of tax

liability

TAX RETURN PREPARER PENALTIES

Page 10: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

TAXPAYER PENALTIES

Accuracy-Related • Negligence or

disregard• Substantially

understated income tax

Failure to file Failure to pay tax

due

Underpayment due to fraud

Filing a frivolous tax return

Failure to file Failure to pay tax

due

Page 11: CHAPTER EIGHT OVERVIEW OF TAX PROCEDURE. EXPECTED LEARNING OUTCOMES Appreciate and understand: l The…

PRIVILEGED COMMUNICATIONS

Who holds privilege

What the privilege protects