Legal Ramification of Tax Strategies

Over the entirety of this course, you have learned about various tax research tools which are available, as well as the underlying taxing authoritative bodies.  You have learned how critical correct tax advice is to individuals. In this activity, you have an opportunity to demonstrate your command of these regulations and the legal consequence of various tax decisions. You will be required to apply your knowledge and to research the case identified below and to provide a succinct and detailed explanation.

"The Bird Estate committed tax fraud when it purposely understated the value of the business created and operated by the decedent, Beverly Bird. Executor Wilma Holmes admitted to the Tax Court that she had withheld several contracts and formulas that, had they been disclosed to the valuation experts used by the government and the estate, would have added $1 million in value to the business and over half that amount in Federal estate tax liabilities. Summary data include the following:

                                                          Reported on Form 706                                    Other Amounts

  Gross estate                                        $12 million                                         $1 million understatement    

 

 Deductions on original,                        $ 2 million                                                         $400,000       

return Interest on estate tax deficiency,

professional fees incurred during 

administration period.                     

Holmes asks you for advice in computing the fraud penalty. Ignore interest amounts. She wonders whether to take the 75 percent civil penalty against the full $1 million understatement or against the $600,000 net amount that the taxable estate would have increased had the administrative expenses been incurred prior to the filing date of the Form 706. Write Holmes, an experienced certified public accountant with an extensive tax practice, A Letter Stating Your Opinion.

1. "Support your paper with seven (7) scholarly sources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
2. Must Provide Your Paper (an Introduction and Conclusion).
3. Length: 12 Pages.

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Status NEW Posted 12 Jun 2017 01:06 PM My Price 175.00

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