5: Audit Letter to IRS
(Due in 8 Weeks)
Due Week 10 and worth 160 points
You are a CPA working as a tax professional and have been
hired by a client who comes to you with a letter from the IRS indicating that it
is auditing several items on the client’s tax return and making the following
method the client used to value foreign currency exchanges is incorrect.
undervalued international exchange of appreciated property should show a larger
through export operations were underreported and revenue is understated.
transfer of intangible property for stock was undervalued and results in a
made to another country were done through a subsidiary and not a branch and are
taxable as such.
Using the Internet or Strayer databases, research the rules
regarding the above types of transactions.
Write a one to two (1-2) page paper in which you:
- Respond to the assertions by the IRS and counter those
assertions with your own. Provide support for the rationale used in the
- Make a convincing argument that the information / documentation
your client possesses justifies and supports the client’s claim. Provide
supporting evidence for your argument.
- Use at least two (2) quality resources in this
assignment. Note: Wikipedia and
similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font
(size 12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your professor for
any additional instructions.
- Include a cover page containing the title of the
assignment, the student’s name, the professor’s name, the course title,
and the date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
Determine the tax implications of
conducting business in non-U.S. currencies.
Analyze the rules regulating
international tax-free exchanges and the international sale of goods.
- Analyze intangible property rights abroad.
- Examine direct investments abroad through a foreign
branch or foreign company.
- Use technology and information resources to research
issues in international tax planning and research.
- Write clearly and concisely about international tax
planning and research using proper writing mechanics.