Exercise:
- I am assigned a project from my CPA firm. I have to go into a new building and try to find as many pieces of furniture and fixtures from the building as I can. So for example, a door, a drop ceiling, a window, a drinking fountain. I will do this so I can use 7 year depreciation instead of 39 year depreciation. If I find $1,000,000 of things I can argue are fixtures instead of buildings, the client will give me and my CPA firm $50,000 cash bonus.
- Find one thing wrong about this in Circular 230, Statement on Tax Standards and AICPA Code of Professional Conduct. They must be different - not all contingent fees, for example. Quote and state the violation within each.
- Assume you complete the tax return. Find one violation with Code Section 6694 or the related Treasury regulations.
- Should take about 1-2 pages, single spaced.