Chapter 16

Internet Activities

Use the tax resources of the Internet to address the following questions. Do not restrict your search to the World Wide Web, but include a review of newsgroups and general reference materials, practitioner sites and resources, primary sources of the tax law, chat rooms and discussion groups, and other opportunities.

Research Problem 6.
Find an article in which a tax professional describes the confidentiality privilege available under the Code for a CPA tax adviser. Then construct a list of “Confidentiality Dos and Don’ts for the CPA.”

Research Problem 7.
Find an article that discusses these terms: realistic possibility, reasonable basis, frivolous return. Summarize the article in an e-mail to your professor.

Research Problem 8.
Corporations with large estimated tax overpayments and underpayments are subject to special interest rates. (a) Find in the Code how these rates are determined. (b) List such rates that have been in effect for the last six calendar quarters.

Research Problem 9.
Use the most recent IRS data to answer the following questions. Before you complete this assignment, make certain that you can define each of the italicized terms.

Research Problem 10.
Prepare a graph illustrating the trends in IRS audit activity over the past decade, and submit it to your instructor. First decide whether you are measuring audited returns, tax dollars recovered by audit, or budget resources dedicated to audit activities. Next decide which types of taxpayers and returns you will be graphing. Then find your data at http://www.irs.gov.

Research Problem 11.
The Treasury has elaborate disclosure and penalty rules for “tax shelters” that are “reportable transactions.” Define these two terms in an e-mail to your instructor.

Research Problem 12.
In a PowerPoint presentation for your classmates, describe how the confidentiality privilege applies to tax shelter:

  1. Owners.
  2. Promoters.