Category: Writing

Withholding Allowances. Bart and Jane Lee are married, file
a joint return and have nvo dependent children (nvins, age 9). Barr begins a
new job and is asked co fill out a Form W-4. His monthly gross earnings will be
$3,200. Jane does nor work outside their home. Bart can claim nvo additional
withholding allowances because he will have large deductions.
a. What is the correct number of withholding allowances on
Form W-4?
b. What is the amount of federal income tax, FICA and
Medicare tax to be withheld using the wage bracket cables (see withholding
cables starting on page T-16)?
c. What disclosure procedures must Bart’s employer follow if
Bart claims more than ten allowances?

Withholding Exemptions. Barry is a college student who is
employed as a waiter during the summer. He earns approximately $1,500 during
the summer and estimates that he will nor be required to file a tax return and
will have no federal income tax liability. Last year, however, he made $6,000
and was required co file a return and pay $400 in taxes. Barry is unmarried and
is supported by his parents. He has no dependents and does not have any other
sources of income or deductions.
a. Can Barry claim exempt status on Form W-4 for withholding
purposes?
b. Can Barry claim more than one exemption on Form W-4
(e.g., additional withholding allowances or the standard deduction allowance)
co minimize the amount withheld? Explain.

Detennining Acquiescence.
1.
a. What 2015 action (acquiescence or nonacquiescence ) did
the IRS Commissioner take regarding the 9th Circuit decision in Voss v.
Commissioner, 116 AITR 2d 2015 -5529? Hint: Consult Actions on Decisions (AOD).
b. What issue did the AOD address?
2.
Detennining Acquiescence. a. What original action
(acquiescence or nonacquiescence) did the IRS Commissioner take regarding the
1982 Tax Court decision in Doyle, Dane, Bernbach, Inc., 79 T.C. 101 (1982)?
Hint: Consult Actions on Decisions (AOD). b. Did the IRS Commissioner
subsequently change his mind? If so, when?

Penalties for Nonp ayment of Withholding and FICA Taxes.
Lake Corporation has severe cash-flow prob lems. You are the company’s
financial and tax consu ltant. The treasurer of the company informed you that
the company has failed to make FICA and federal income tax withholding payments
to the IRS (both the employer and employee contributions) for a period of
approximately six months.
a. What advice can you give to the company treasurer
regarding the nonpayment of taxes?
b. Can the liability for payment of the taxes extend to
parties other than the corporation? Explain.

Detennining Acquiescence.
a. What official action (acquiescence or nonacquiescence) did the IRS Commissioner take regarding the 1985 Tax Court decision in john McIntosh, 85 T.C. 31 (1985)? Hint: Consult Actions on Decisions (AOD).
b. Did this action concern all issues in the case? If not, explain. (Before answering this question, consult the headnote to the court opinion.)

1. Using IRS Rulings. Locate PLR 8733007 and Rev. Rul.
81-219.
a. Briefly summarize the tax issue and conclusion of each
ruling.
b. Under what circumstances can a researcher rely on the
private letter ruling?
c. Under what circumstances can a researcher rely on the
revenue ruling?
2. Using Treasury pronouncements. Which IRC section(s) does
Rev. Rul. 2001 -29 interpret? Hint: consult the official pronouncement of the
IRS

1.According to the Statements on Standards for Tax Services,
what belief should a CPA have before caking a pro -taxpayer position on a tax
return?
2. List an advisor’s duties that are excluded under the
AICPA’s Statements on Standards for Tax Services.
3. List three requirements that apply to written advice
under Treasury Department Circular
4. Explain how Treasury Department Circular 230 differs from
the AICPA’s Statements on Standards for Tax Services.

1.Use any major tax service to answer the following
questions :
a. What are the principal primary sources?
b. What are the principal secondary sources?
2. Compare the features of the computer ized tax services
with those of Internet sites maintained by noncommerc ial institutions . What
are the relative advantages and disadvantages of each? Cou ld the latter sites
serve as a substitute for a commercia l tax service?