solved 11. Which of the following reporting standards is higher: a.

11. Which of the following reporting standards is higher: a. Substantial Authority versus Reasonable Basis? b. Realistic Possibility of Success versus More Likely Than Not?c. Reasonable Basis versus Realistic Possibility of Success? d. Substantial authority versus More Likely Than Not? 13. Assume that the tax law does prescribe a reporting standard for a particular tax
position. What threshold standard should a tax return preparer apply to avoid penalties? 16. Your client operates a small telemarketing company out of her home, and she has
one full-time employee who assists in making phone calls to prospective customers.
Her teenage daughter also enters data into the company’s electronic record-keeping
system on a regular basis. Her daughter is somewhat “spoiled,” so your client pays her
$40 cash per hour to encourage her to develop a solid work ethic and work diligently.
Your client has told you that she wants to“be straight” with the IRS in every way. Are
there any issues that you might want to challenge or research?17. Your client owns a 3-bedroom home with a 2-car garage in a suburb of
Tucson,Arizona. Although the home office rules are strict on deducting expenses, you
have determined that your client satisfies these rules. Her home office occupies the
spare bedroom in her home, and it comprises about 480 square feet of her 2,400 square
foot home. The garage is an additional 480 square feet. Your client is interested in
claiming the maximum allowable deductions for her home office. In reviewing your
client’s tax return for last year, you noticed that she claimed a deduction equal to the full
amount of her mortgage payment on the house.Your client did not, however, deduct any
other expenses associated with her home office. She did not maintain detailed records
and was concerned that the IRS might think that she was exaggerating her other
expenses if she just “ballparked them” without adequate supporting documentation. a. Are there any issues that you want to challenge or research? b. Should you inform the tax return preparer who filed her return last year about these
errors? c. What other advice should you give to your client?d. Assume that the prior-year tax return preparer is a friend of yours, but he really
screwed up and should compensate your client if she incurs tax penalties and interest.
Would you inform your client about her rights against your friend? Should you inform
your friend about this? 18. Kupan, a famous forensic pathologist, failed to report income from the sale of his
mansion on his tax return. His gain on sale exceeded $1.7 million. He also sold stock at a
$400,000 gain and did not report that gain either. In a criminal prosecution against Kupan
for tax fraud, Kupan blamed his accountant, Rachel, for the omission, claiming that
Rachel knew that the pathologist was a “poor record-keeper.” Kupan admitted that he
read the tax return prepared by Rachel and signed it. Will Kupan’s defense of shifting responsibility to Rachel in this criminal prosecution be successful? 4 to 5 lines for each requirement Requirements: Requirements: 2-3 pages