Professional Duties

Question 1

What are the Relevant Terms for Uncertain Positions?

Answer 1

-Will - 90% -Should - 80% -More Likely Than Not - < 50% -Substantial Authority - 40% -Realistic Possibility of Success - 1 in 3 possibility -Reasonable Basis - Higher than Frivolous - but lower than Realistic Possibility of Success. -Not Frivolous - Not improper - some merit -Frivolous - Improper

Question 2

What are the authoritative sources for tax research?

Answer 2

IRC - best Treasury Regulations US Tax Court Cases IRS publications ARE NOT authoritative sources.

Question 3

What are the main points for a Tax Court?

Answer 3

1. The U.S. Tax Court (TC) hears only federal tax disputes. The TC is officially located in Washington, D.C., but judges travel to various cities across the US to hear cases. 2. Generally, the case is heard by one judge. There are no juries in the TC. 3. The TC is a “deficiency court” in that the taxpayer can have the TC hear their tax dispute without first paying the tax deficiency. 4. The TC also has a Small Tax Division (STD). To have a case heard by the STD, the amount of tax in dispute cannot exceed $50,000. There is no appeal from a STD decision. 5. Appeals from the TC go to the U.S. Court of Federal Appeals that covers the geographic area in which the taxpayer resides.

Question 4

What must be proven by the plaintiff against an accoutant, for Fraud? Simple Negligence?

Answer 4