Explain what each doctrine is by providing an example to help Jack understand the differences.

1(A)
Nothing is more stressful for a client than an audit. Hopefully you have good documentation in the file for all the positions you took on the tax return. But there is always something the IRS is specifically looking at when they decide to audit. The most important thing to do is gather the evidence to support your positions. That includes conducting tax research on the issues where the IRS has focused. There are steps to conducting that research. What are they? And what is your responsibility when providing advice to your client? As the preparer, you are not ultimately responsible for the overall return. But you do have some liability when it comes to its accuracy. Discuss some of the issues you may face and where you think prepares should draw the line


Helping a Family Develop a Tax Strategy”
1(B)
A married couple arrives at your office and is hoping to get tax advice for their situation. They have a 21-year-old daughter whom they support in her full-time college studies. The husband’s mother also lives with them and they support her in her daily living expenses. They don’t understand whether they can report the daughter or mother as dependents and think they may benefit though a ‘married filing jointly’ status because they each make over $150,000 a year. They need your help! What kind of guidance would you provide to them in this situation? What additional facts would you need to know?

Tax Implications”
1( C)
Your client, Jack, has asked about the differences between the constructive receipt doctrine and the claim of right doctrine. Explain what each doctrine is by providing an example to help Jack understand the differences.