You are a tax preparer who is also a Certified Public Accountant meeting a potential client for the first time. During your discussion your potential client informs you that he has a business, a small vegetable farm, which sells produce to the public predominately at farmers' markets on weekends. He states, adamantly, that because he receives payment in cash he is not required to report it as income.
For this assignment, Use the Internal Revenue Service's website at http://www.IRS.gov to locate Treasury Department Circular No. 230 "Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers before the Internal Revenue Service" for assistance with requirement number 2.
Use the following website: http://www.aicpa.org and access "Statements on Standards for Tax Services - Effective January 1, 2010" for assistance with requirement number 3.
You will also need to use the Rasmussen Online Library database to locate at least 2 journal articles on the subject. Use APA formatting to write your paper and to document your sources. It will be important to cite your sources both in-text and on your reference page.
In a minimum of 2 pages, write an essay that addresses the following:
- Research relevant tax code and explain whether or not there is any basis to your client's statement. Please be sure to reference the relevant tax code(s) in your discussion and clearly state your position.
- Research the Internal Revenue Service (IRS) requirements for tax preparers and explain your ethical and professional responsibilities as a tax preparer and the potential problems you would encounter if you did not properly understand the tax code or inform your client of his obligations with respect to the preparation of his tax return.
- Using the AICPA's Statement on Standards for Tax Services, discuss your obligations as a tax preparer related to your potential client's tax return.
- Make sure your paper is free of spelling and grammar errors. Your writing should exhibit appropriate, audience-specific tone and vocabulary tied to the purpose of the research. Your paper should also exhibit expanded vocabulary and diverse sentence construction.
Include an APA formatted title page and reference page