Research Case Solutions
Federal Tax Research
13th Edition Sawyers & Gill,
,Research Case Solutions
The Solutions To The Research Cases Are Valid As Of February 2020. It Is Likely That There
Will Be Changes In The Code, Regulations, Administrative Pronouncements, And Case Law
After This Manual Is Published. Further, It Is Likely That The Services Available To The
Students Will Not Be Identical To Those Available To The Authors Of This Manual. All
Possible Citations Are Not Provided; Only A Sample Of The Citations Most Likely Provided By
Students Is Presented. Consequently, The Students‘ Responses May Vary From Those Listed For
Each Question.
Chapter 1
Note: For The Following Cases, Students May Present Other Positions, Which Could Be
Considered Ethically Correct. The Answers Presented Below Are The Views Of The Authors
And Are Presented As A Basis To Judge A Student‘S Ethical Conclusion:
1-1 Aicpa Code Of Professional Conduct
Et § 1.200.001: Independence
Et § 1.100.001: Objectivity And Integrity
Et § 1.700.001: Confidential Client Information
Et § 1.400.001: Acts Discreditable
Ssts No. 1: Tax Return Positions
It Is Not Advisable For Ahi Corporation To Complete The Transaction. Under Et
§ 1.100.001, All Professional Services By A Cpa Should Be Rendered With
Objectivity And Integrity, Avoiding Any Potential Or Existing Conflicts Of
Interest. The Cpa Must Exercise Due Professional Care In The Performance Of
All Professional Services And Comply With All Standards Promulgated By The
Bodies Designated By The Aicpa Council. Under Et §1.400.001, A Cpa Must Not
Commit An Act That Is Discreditable To The Profession. Under The Statements
Of Standards For Tax
, Services (Ssts), A Cpa Should Have A Good-Faith Belief That A Recommended
Position Has A Realistic Possibility Of Being Sustained If Challenged.
The Cpa Must Use Judgment That Reflects Professional Competence And Serves
The Client‘S Needs. Written Communication Should Be Given To The Client In
Important, Unusual, Or Complicated Transactions. The Cpa Should Advise The
Client Of Such Risks As In The Instant Case. Where The Taxpayer Insists On The
Specific Position, The Cpa Should Not Continue With The Engagement As The
Tax Return Position Is Exploitative And Frivolous.
1-2. Aicpa Code Of Professional Conduct Et
§ 1.100.001: Objectivity And Integrity
Ssts No. 1: Tax Return Positions; No. 6: Knowledge Of Error: Return
Preparation And Administrative Proceedings
A Cpa Must Comply With All Standards Promulgated By Bodies Designated By
The Aicpa Council And Conform To Generally Accepted Accounting Principles.
Under Et § 1.100.001, All Professional Services By A Cpa Should Be Rendered
With Objectivity And Integrity, Avoiding Any Potential Or Existing Conflicts Of
Interest. In Addition, A Cpa Should Neither Knowingly Misrepresent Facts Nor
Subordinate His Or Her Judgment To That Of Others In Rendering Any
Professional Services.
Under The Statements Of Standards For Tax Services (Ssts), A Cpa Should Have
A Good-Faith Belief That A Recommended Position Has A Realistic Possibility
Of Being Sustained If Challenged. In The Instant Case, The Cpa Must Notify
And Advise The Client Promptly Upon His Or Her Knowledge Of A Prior Or
Current Tax Return Error(S) That Has A Significant Effect Upon The Taxpayer‘S
Liability. The Client Must Be Notified And Advised Either Orally Or In Writing.
Once Rental Prices Of The Current Area Have Been Verified And Compared
Against The Amount Paid By Haddock Corporation, The Cpa Should Take The
Appropriate Actions. The Cpa Should
, Consider Whether To Proceed With The Preparation Of The Current Year‘S
Return Or Resign From The Engagement Completely. He Or She Should Not
Sign The Tax Return Until The Appropriate Measures Have Been Taken To
Correct The Errors Made In The Current And Prior Returns.
1-3. Aicpa Code Of Professional Conduct Et
§ 1.100.001: Objectivity And Integrity
Et § 1.700.001: Confidential Client Information
Under Et § 1.700.001 Of The Aicpa Code Of Professional Conduct, A Cpa In The
Practice Of Public Accounting Must Not Disclose Confidential Client Data
Without Specific Consent Of The Client. There Are Exceptions That Exist For
Rule 301. Under Et § 1.100.001, All Professional Services By A Cpa Should Be
Rendered With Objectivity And Integrity, Avoiding Any Potential Or Existing
Conflicts Of Interest. In Addition, A Cpa Should Neither Knowingly
Misrepresent Facts Nor Subordinate His Or Her Judgment To That Of Others In
Rendering Any Professional Services.
In The Instant Case, The Cpa Should Notify The Client, Shark Corporation, Of
The Misrepresentation Of Facts. If The Client Is Not Willing To Notify The
Buyer Of The Building‘S Current Structural Condition, The Cpa Should Resign
From The Engagement. If The Cpa Has Already Told The Other Side That The
Building Was Ok When He Or She Learns Of Its Status, The Cpa Should Resign
From The Engagement With Shark Corporation.
1-4. Aicpa Code Of Professional Conduct Et
§ 1.100.001: Objectivity And Integrity Et
§ 1.300.001 General Standards
Et § 1.700.001: Confidential Client Information
Under Et § 1.700.001 Of The Aicpa Code Of Professional Conduct, A Cpa In The
Practice Of Public Accounting Must Not Disclose Confidential Client Data
without
Federal Tax Research
13th Edition Sawyers & Gill,
,Research Case Solutions
The Solutions To The Research Cases Are Valid As Of February 2020. It Is Likely That There
Will Be Changes In The Code, Regulations, Administrative Pronouncements, And Case Law
After This Manual Is Published. Further, It Is Likely That The Services Available To The
Students Will Not Be Identical To Those Available To The Authors Of This Manual. All
Possible Citations Are Not Provided; Only A Sample Of The Citations Most Likely Provided By
Students Is Presented. Consequently, The Students‘ Responses May Vary From Those Listed For
Each Question.
Chapter 1
Note: For The Following Cases, Students May Present Other Positions, Which Could Be
Considered Ethically Correct. The Answers Presented Below Are The Views Of The Authors
And Are Presented As A Basis To Judge A Student‘S Ethical Conclusion:
1-1 Aicpa Code Of Professional Conduct
Et § 1.200.001: Independence
Et § 1.100.001: Objectivity And Integrity
Et § 1.700.001: Confidential Client Information
Et § 1.400.001: Acts Discreditable
Ssts No. 1: Tax Return Positions
It Is Not Advisable For Ahi Corporation To Complete The Transaction. Under Et
§ 1.100.001, All Professional Services By A Cpa Should Be Rendered With
Objectivity And Integrity, Avoiding Any Potential Or Existing Conflicts Of
Interest. The Cpa Must Exercise Due Professional Care In The Performance Of
All Professional Services And Comply With All Standards Promulgated By The
Bodies Designated By The Aicpa Council. Under Et §1.400.001, A Cpa Must Not
Commit An Act That Is Discreditable To The Profession. Under The Statements
Of Standards For Tax
, Services (Ssts), A Cpa Should Have A Good-Faith Belief That A Recommended
Position Has A Realistic Possibility Of Being Sustained If Challenged.
The Cpa Must Use Judgment That Reflects Professional Competence And Serves
The Client‘S Needs. Written Communication Should Be Given To The Client In
Important, Unusual, Or Complicated Transactions. The Cpa Should Advise The
Client Of Such Risks As In The Instant Case. Where The Taxpayer Insists On The
Specific Position, The Cpa Should Not Continue With The Engagement As The
Tax Return Position Is Exploitative And Frivolous.
1-2. Aicpa Code Of Professional Conduct Et
§ 1.100.001: Objectivity And Integrity
Ssts No. 1: Tax Return Positions; No. 6: Knowledge Of Error: Return
Preparation And Administrative Proceedings
A Cpa Must Comply With All Standards Promulgated By Bodies Designated By
The Aicpa Council And Conform To Generally Accepted Accounting Principles.
Under Et § 1.100.001, All Professional Services By A Cpa Should Be Rendered
With Objectivity And Integrity, Avoiding Any Potential Or Existing Conflicts Of
Interest. In Addition, A Cpa Should Neither Knowingly Misrepresent Facts Nor
Subordinate His Or Her Judgment To That Of Others In Rendering Any
Professional Services.
Under The Statements Of Standards For Tax Services (Ssts), A Cpa Should Have
A Good-Faith Belief That A Recommended Position Has A Realistic Possibility
Of Being Sustained If Challenged. In The Instant Case, The Cpa Must Notify
And Advise The Client Promptly Upon His Or Her Knowledge Of A Prior Or
Current Tax Return Error(S) That Has A Significant Effect Upon The Taxpayer‘S
Liability. The Client Must Be Notified And Advised Either Orally Or In Writing.
Once Rental Prices Of The Current Area Have Been Verified And Compared
Against The Amount Paid By Haddock Corporation, The Cpa Should Take The
Appropriate Actions. The Cpa Should
, Consider Whether To Proceed With The Preparation Of The Current Year‘S
Return Or Resign From The Engagement Completely. He Or She Should Not
Sign The Tax Return Until The Appropriate Measures Have Been Taken To
Correct The Errors Made In The Current And Prior Returns.
1-3. Aicpa Code Of Professional Conduct Et
§ 1.100.001: Objectivity And Integrity
Et § 1.700.001: Confidential Client Information
Under Et § 1.700.001 Of The Aicpa Code Of Professional Conduct, A Cpa In The
Practice Of Public Accounting Must Not Disclose Confidential Client Data
Without Specific Consent Of The Client. There Are Exceptions That Exist For
Rule 301. Under Et § 1.100.001, All Professional Services By A Cpa Should Be
Rendered With Objectivity And Integrity, Avoiding Any Potential Or Existing
Conflicts Of Interest. In Addition, A Cpa Should Neither Knowingly
Misrepresent Facts Nor Subordinate His Or Her Judgment To That Of Others In
Rendering Any Professional Services.
In The Instant Case, The Cpa Should Notify The Client, Shark Corporation, Of
The Misrepresentation Of Facts. If The Client Is Not Willing To Notify The
Buyer Of The Building‘S Current Structural Condition, The Cpa Should Resign
From The Engagement. If The Cpa Has Already Told The Other Side That The
Building Was Ok When He Or She Learns Of Its Status, The Cpa Should Resign
From The Engagement With Shark Corporation.
1-4. Aicpa Code Of Professional Conduct Et
§ 1.100.001: Objectivity And Integrity Et
§ 1.300.001 General Standards
Et § 1.700.001: Confidential Client Information
Under Et § 1.700.001 Of The Aicpa Code Of Professional Conduct, A Cpa In The
Practice Of Public Accounting Must Not Disclose Confidential Client Data
without
