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Annually the Internal Revenue Service (IRS) notifies taxpayers of potential scams and frivolous tax arguments that some tax preparers use to reduce their clients’ tax liability.

Topic: questions
Paper details:
1. Annually the Internal Revenue Service (IRS) notifies taxpayers of potential scams and frivolous tax arguments that some tax preparers use to reduce their clients’ tax liability.
Use the Internet to find information on one of these frivolous tax arguments and discuss their assertions as well as the IRS’s position as to why these assertions are false. What is the general theme of these arguments? Why are these arguments clearly frivolous?
What would you do if you were approached by a potential client claiming one of these frivolous tax arguments?
2. For years, companies used master files to store data. Databases are now being used in their place. Why did this transformation take place? What are the advantages and disadvantages of using databases rather than files? Why is it important for an accountant to understand how a database works? Identify at least three functions in which an accountant would use a database.
3. Explain the concept of the Time Value of Money (TVM). Does the TVM generally imply that “money today” is worth more than “money tomorrow”? Please explain, providing one or more examples that apply the concept of TVM.

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