[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for REG.

“Death and Taxes” – Individual Tax for the CPA Exam

Posted by Another71 on Monday, November 24, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

I read that, it's about racketeering, nothing specific, just you know, be good, don't be bad, don't break the law

[willpassby2014]

ok.

According to the standards of the profession, which of the following sources of information should a CPA consider before signing a client's tax return?

Information actually known to the CPA from the tax return of another client

Information provided by the client that appears to be correct based on the client's returns from prior years

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

both i'd say, but just because you even ask I assume it's wrong?

[Anonymous]

I just did this gleim SIM asking about auditor's working papers and got 33% lol!! I just took AUD couple months ago

[willpassby2014]

you are right . Its both. I thought we should not use the other persons tax return due to confidentiality but i am thinking too much. Unless you disclose there is no confidentiality release so CPA can use both.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

as long as you don't broadcast it, it should be OK

[Meddik]

anjanja I do the same on the MCQs. I can think my way out of any answer by coming up with what I think are exceptions. Sometimes it pays off, but for the most part it's best to go with your first instinct after carefully reading it. Seems to pay off more often than the other decisions.

Are you guys preparing heavily for SIMs on prof responsibilities? Like tax planning etc? CPAexcel had two that involved calculating specific penalty amounts. The info was in the tax code (at least most of it) but it definitely took up a lot of time reading it carefully and flipping back and forth to apply it. I think I'm just going to hope I have enough time on SIMs left over to do that research if something like that pops up.

I'm also thinking 90 min MCQ/90 min SIMS. I tend to move through SIMs really fast though, so if MCQs are rough I think 100 min MCQ wouldn't be too detrimental.

FAR - 86
REG - 83
AUD - 97
BEC -

[skoog]

Ideally I hope to finish the MCs in 90mins total which will leave 90mins for the SIMS. At worst, I'm planning on a maximum of 35 mins per testlet for MCs which will allow 75mins for the SIMS.

[willpassby2014]

I dont see option for Realistic possibility….i am getting nervous

A CPA prepared a tax return that involved a tax shelter transaction that was disclosed on the return. In which of the following situations would a tax return preparer penalty not be applicable?

A.

There was substantial authority for the position.

B.

It is reasonable to believe that the position would more likely than not be upheld.

C.

There was a reasonable possibility of success for the position.

D.

There was a reasonable basis for the position.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I think the general conclusion is that there are no SIMs on that kind of stuff. I still do those to just remember

[Anonymous]

willpassby2014,

As I recall tax shelter requires more likely than not, i read about it.

But in general there are a lot of discrepancies on tax position between my notes, mcqs, IRC, different test banks – I gave up at this point

[skoog]

Im guessing D but I can see the answer being A or C too. Those three answers are all very similar.

[Anonymous]

I think ‘reasonable' is minimum requirement if disclosure is made, realistic ~ 33% is minimum if no disclosure

although according to IRC substantial authority is a minimum requirement, so that's that

here https://www.law.cornell.edu/uscode/text/26/6694, sorry to confuse

[willpassby2014]

anna is right. My question is substantial authority which is 40% change is enough

A position is unreasonable unless there is “substantial authority” supporting it.

If that is available why use more likely than not…is this much better than substantial authority.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

because tax shelter is a risky thing, you want >50%, 40% just would't cut it haha

[Author]

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