Homework
CLIENT C: Client C received a notification that he is being examined by Office Audit. He has a meeting scheduled with IRS in two weeks. The letter he received from IRS indicated that they will be examining his 2019 tax return. Specifically, he will be examining the following and requests the following information:
A. Rental income - copies of deposit slips for rental income.
B. Rental expenses:
1. Depreciable assets purchased - copies of invoice for purchase and proof of payment.
2. Rental repairs and maintenance - copies of bills and cancelled checks.
C. This is all the letter indicates with regard to the subject matter of the audit.
Task
A. Client C feels confident that he can convince the IRS of anything. Should you allow your client to join you at the examination? If so, why? If not, why not?
B. For items paid with credit cards C has copies of credit card statements but no receipts. As the statement reflects the payee, amount and the date of the transaction do you feel this is sufficient? If not why not?
C. Since the client has a separate bank account for rental property, client would like to bring all the bank statements and all the rental receipts. Is this advisable? If not, why not?
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.