Discussion: "Interpreting Tax Research and Tax Representation Guidelines"
Respond to the following:
• From the e-Activity, review the case for Alacare Home Health Services, Inc. Outline the case, findings of fact, and final opinion of the U.S. Tax Court using the steps in the research steps. Determine whether using the research steps would lead to a different conclusion. Defend your position.
e-Activity:
Go to the Tax Almanac Website. Review the U.S. Tax Court - Memorandum Decision case, "Alacare Home Health Services, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent". Be prepared to discuss. Note: The case noted above can be found by navigating to U.S. Tax Court, U.S. Tax Court Decisions, and entering a keyword search in the provided search box.
• Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (IRS). Suggest which document creates better guidance in the preparation of tax returns and written advice provided to taxpayers. Suggest measures the AICPA could take to ensure that CPAs are compliant with either set of standards. Defend your position.