Question

1. Explain your professional responsibilities in tax return preparation for gross income, adjusted gross income, and taxable income.

2. Describe how you have demonstrated ethical behavior in this tax preparation process for these three clients.

4. Justify the use of the various tax forms for each of the three clients

Answer 1

1. Explain your professional responsibilities in tax return preparation for gross income, adjusted gross income, and taxable income.

a) Obtain all information on taxable income and all expenses.

b) Do appropriate adjustment to reduce client' taxes.

c) Provide sufficient information and advice to the taxpayer to complete the tax form.

d) Verify the data correct any errors committed by the taxpayer.

e) Refer tax laws to ensure more accurate presentation and submission of tax forms.

2. Describe how you have demonstrated ethical behavior in this tax preparation process for these three clients.

a) Stick to the legal requirement rather than proceeding with taxpayer's instruction for the monitory benefit.

b) Insisting on reporting transparent and accurate values.

c) Verify all vouchers thoroughly to ensure proper reporting.