Solutions Manual with Instructor
Manual for Pearson's Federal
Taxation 2025 Corporations,
Partnerships, Estates, & Trusts
38th Edition By Mitchell Franklin,
Luke Richardson (All Chapters 1-
15, 100% Original Verified, A+
Grade)
All Chapters are Reverse
Arranged.
Corporate Chapters 15-1
, Instructor’s Resource Manual
Mitchell Franklin
Pearson’s
Federal Taxation 2025
Corporations, Partnerships,
Estates & Trusts
Luke E. Richardson
Mitchell Franklin
Instructor Manual Reverse Arranged: Chapter 15 to 1
, Chapter C:15
Administrative Procedures
Learning Objectives
After studying this chapter, the student should be able to:
1. Describe the role of the IRS in our tax system.
2. Discuss how returns are selected for audit and the alternatives available to tax
payers whose returns are audited.
3. Explain the IRS’s ruling process.
4. Identify the due dates for filing tax returns and paying taxes.
5. Distinguish the various types of penalties imposed by the IRS.
6. Calculate the penalty for not paying estimated taxes.
7. Describe the more severe penalties, including the fraud penalty.
8. Recognize when the statute of limitations applies.
9. Explain from whom the government may collect unpaid taxes.
10. Apply the professional and governmental standards for tax practitioners.
Areas of Greater Significance
1. Students should acquire a clear understanding of the role of the IRS and the audit
process. Penalties are assuming a more important role in the revenue raising
process and should be introduced to the student at this point.
2. The Statement on Standards for Tax Services is now discussed more fully in this
chapter. While the standards are not legally enforceable, they may be cited in a
negligence lawsuit and failure to follow them may be grounds for the termination
or suspension of one’s professional license.
3. The unauthorized practice of law is a significant issue that is being raised more
often. Students should understand the areas of tax practice that an accountant is
qualified to practice in and when an attorney should be called in to lend their
expertise.
C:IO15-1
Copyright © 2025 Pearson Education, Inc.
, Areas of Lesser Significance
In the interest of time, the instructor may determine that the following areas are best
covered by student reading, rather than class discussion:
1. Tax practice issues (statutory provisions concerning tax return preparers, rules of
Treasury Department Circular 230).
2. Liability for tax.
Problem Areas for Students
The following areas may prove especially difficult for students:
1. Payment requirements for estimated taxes.
2. Differences between civil and criminal fraud.
Highlights of Recent Tax Law Changes
Beginning on January 1, 2024 the AICPA released revised Statements on Standards for
Tax Services. The standards have been reduced from seven to four standards and re-written. A
link to the standards is provided in Appendix E in the textbook.
Teaching Tips
1. Letter rulings: Refer students back to page C:1-12 for guidance on how to locate
copies of letter rulings. p. C:15-9.
2. Without the existence of a failure-to-pay penalty, taxpayers could be more
aggressive with the positions they take on their tax returns. For example, if a
taxpayer took an aggressive position and was later audited, he would only have to
pay additional taxes plus interest – essentially paying back a loan from the
government. The failure-to-pay penalty has increased the risk to those taxpayers
who take aggressive positions on their tax returns. p. C:15-16.
C:IO15-2
Copyright © 2025 Pearson Education, Inc.
Manual for Pearson's Federal
Taxation 2025 Corporations,
Partnerships, Estates, & Trusts
38th Edition By Mitchell Franklin,
Luke Richardson (All Chapters 1-
15, 100% Original Verified, A+
Grade)
All Chapters are Reverse
Arranged.
Corporate Chapters 15-1
, Instructor’s Resource Manual
Mitchell Franklin
Pearson’s
Federal Taxation 2025
Corporations, Partnerships,
Estates & Trusts
Luke E. Richardson
Mitchell Franklin
Instructor Manual Reverse Arranged: Chapter 15 to 1
, Chapter C:15
Administrative Procedures
Learning Objectives
After studying this chapter, the student should be able to:
1. Describe the role of the IRS in our tax system.
2. Discuss how returns are selected for audit and the alternatives available to tax
payers whose returns are audited.
3. Explain the IRS’s ruling process.
4. Identify the due dates for filing tax returns and paying taxes.
5. Distinguish the various types of penalties imposed by the IRS.
6. Calculate the penalty for not paying estimated taxes.
7. Describe the more severe penalties, including the fraud penalty.
8. Recognize when the statute of limitations applies.
9. Explain from whom the government may collect unpaid taxes.
10. Apply the professional and governmental standards for tax practitioners.
Areas of Greater Significance
1. Students should acquire a clear understanding of the role of the IRS and the audit
process. Penalties are assuming a more important role in the revenue raising
process and should be introduced to the student at this point.
2. The Statement on Standards for Tax Services is now discussed more fully in this
chapter. While the standards are not legally enforceable, they may be cited in a
negligence lawsuit and failure to follow them may be grounds for the termination
or suspension of one’s professional license.
3. The unauthorized practice of law is a significant issue that is being raised more
often. Students should understand the areas of tax practice that an accountant is
qualified to practice in and when an attorney should be called in to lend their
expertise.
C:IO15-1
Copyright © 2025 Pearson Education, Inc.
, Areas of Lesser Significance
In the interest of time, the instructor may determine that the following areas are best
covered by student reading, rather than class discussion:
1. Tax practice issues (statutory provisions concerning tax return preparers, rules of
Treasury Department Circular 230).
2. Liability for tax.
Problem Areas for Students
The following areas may prove especially difficult for students:
1. Payment requirements for estimated taxes.
2. Differences between civil and criminal fraud.
Highlights of Recent Tax Law Changes
Beginning on January 1, 2024 the AICPA released revised Statements on Standards for
Tax Services. The standards have been reduced from seven to four standards and re-written. A
link to the standards is provided in Appendix E in the textbook.
Teaching Tips
1. Letter rulings: Refer students back to page C:1-12 for guidance on how to locate
copies of letter rulings. p. C:15-9.
2. Without the existence of a failure-to-pay penalty, taxpayers could be more
aggressive with the positions they take on their tax returns. For example, if a
taxpayer took an aggressive position and was later audited, he would only have to
pay additional taxes plus interest – essentially paying back a loan from the
government. The failure-to-pay penalty has increased the risk to those taxpayers
who take aggressive positions on their tax returns. p. C:15-16.
C:IO15-2
Copyright © 2025 Pearson Education, Inc.
