List the keywords you might use to construct an online tax

Assignment Help Accounting Basics

Reference no: EM133661355

Problem

Gwen Gullible was married to Darrell Devious. They were divorced two years ago. Three years ago (the year before their divorce), Darrell received a $500,000 retirement plan distribution, of which $100,000 was rolled over into an IRA. At the time, Gwen was aware of the retirement funds and the rollover. The distribution was used to pay off the couple's mortgage, purchase a car, and cover living expenses. Darrell prepared the couple's joint return, and Gwen asked him about the tax ramifications of the retirement distributions. He told her he had consulted a CPA and was advised that the retirement plan proceeds used to pay off a mortgage were not taxable income. Gwen accepted that explanation and signed the return. In fact, Darrell had not consulted a CPA.

One year ago (after the divorce), Gwen received a letter from the IRS saying it had not received the tax return for the last full year of marriage. On advice from a CPA, Gwen immediately filed the return (she had a signed copy of the unfiled joint return). The IRS notified Gwen that no estimated payments on the retirement distribution had been paid by Darrell, and that she owed $140,000 in tax, plus penal-ties and interest.

1. List as many possible tax research issues as you can to determine whether Gwen is liable for the tax, interest, and penalties.

2. After completing your list of tax research issues, list the keywords you might use to construct an online tax research query.

3. Execute an online search using your query. For simplicity, select the IRS Revenue Rulings database from the online tax service you use. Summarize your findings

Reference no: EM133661355

Questions Cloud

The mentor helps mentees : Explaining the practical elements of choose response and loan writing Guiding the mentee through a defined set of lending scenarios

Discuss the various stress vulnerability factors : Define stress, stressor and give several examples of three types of stress. Discuss the various stress vulnerability factors; then complete The Tombstone Test.

Satisfying employees overall with organizations culture : There are several ways of contributing to satisfying employees overall with an organization's culture.

Consider why hospital is different than nuclear power plan : Consider why a hospital is different than a nuclear power plan or a commercial airplane as it relates to achieving the same quality levels

List the keywords you might use to construct an online tax : After completing your list of tax research issues, list the keywords you might use to construct an online tax research query.

Achieving quality levels as high-reliability organizations : Why hospital is different than nuclear power plan or commercial airplane as it relates to achieving same quality levels as high-reliability organizations

Why might the index be a better measure of stock market : Why might the S&P500 index be a better measure of stock market performance than the DJIA? Why is the DJIA more popular than the S&P 500?

Obtained throughout your business program : How can you apply the knowledge and skills that you've obtained throughout your business program to address Low Demand for EVs due to

How is income statement of a merchandising company different : Let's begin with this question: How is the income statement of a merchandising company different from that of a service company?

User Account

All Pages