BOE Technical

Question 1

1) Describe and what do you document when preparing BOE 122 waiver

Answer 1

Voluntary; can extend statute period if no return was filed; BOE auditor signature not required to be valid; obtained for two calendar quarters;

Question 2

What are the benefits to the taxpayer when signing waiver?

Answer 2

avoids immediate issuance of billing; holds period open for credits; provides time for taxpayer and auditor to adapt to unforeseen issues and allow more time to resolve. This would eliminate unnecessary billing because of time constraints.

Question 3

How do you reduce a liability if a taxpayer calls?

Answer 3

Settlement program, offer in compromise, payment plan.

Question 4

What is a reasonable amount of time considered to collect a liability?

Answer 4

five to seven years.

Question 5

When is a offer in compromise not available?

Answer 5

If the taxpayer has received tax reimbursement and did not remit it.

Question 6

Describe how you would prepare a stat sample. (MOPPLESSC)

Answer 6

• Method for selecting sample
• objective of test
• Pilot Study
• Project the sample results
• Limit the population
• Estimate sample size
• Sampling plan
• Sample results
• Characteristic being measured.

Question 7

Describe the 10% penalty.

Answer 7

Failure by the taxpayer to exercise due care. Negligence for preparing returns and record keeping are the two types.

Question 8

What is exercise of due care?

Answer 8

Such care that a reasonable and prudent person would exercise under similiar circumstances. Substantial breach by the taxpayer of some duty imposed by the law or authorized rules and regulation.

Question 9

What procedure do you take to prep before going out to the field

Answer 9

Review district master file to find out registration information regarding taxpayer; type of business, starting date, closeout date, ownership, reorganizations, general record of reporting, review refund notices, delinquency.

Question 10

What contacting taxpayer prior to appointment, what information do you arrange for?

Answer 10

time and date of start; records to be supplied; name and position of person contacted, desk/work area; location of books and records.

Question 11

What registration information should be verified with taxpayer?

Answer 11

current ownership is correct; accuracy of assigned area code; accuracy and current on all sub-permits; correctness of TP local transit tax allocation procedures. Send 80ABC RU PUB 17,70,76 and must document in 414Z.

Question 12

How the format of the pink letter laid out?

Answer 12

Use BOE letterhead; date; who addressed to; permit; acknowledge letter; insert blurb of 6596; restate letter from taxpayer; clarify any points; state laws and regulation; answer question in own words.

Question 13

If the taxpayer does not provide their name or is general industry how do you write letter?

Answer 13

Use specific blurb from audit manual on 6596.