As a tax preparer and consultant, it is important to be able to interpret and apply IRSguidelines to situations you may encounter with a client. In this case study, your client, Mal
Manley, has made several assertions regarding the amount of his charitable contributions.
You must be able to use IRS guidelines, your professional skills and judgment, as well as
your personal experiences, to evaluate the information that Manley has included in his client
questionnaire.
In a 1-2 page informative essay, please respond to the following questions:
1. Evaluate client information based on Statements on Standards for Tax Services No.
3 in the first scenario.
2. Evaluate changes of fact regarding the client’s assertions of charitable contributions
made provided in the second scenario in the case study.
3. How do your personal experiences influence the culture of your company workplace
when working with client information which you may not be able to easily verify?
4. How do personal factors affect dealing with your tax clients and society at large? In
regard to both theoretical and applied situations, evaluate the strengths and
limitations of personal experiences.
Assignment Submission Requirements:
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Viewpoint and purpose should be clearly established and sustained by providing
specific examples to support your assertions.
• Use correct grammar, punctuation, and spelling.
• Writing should be well-ordered, logical, and unified, as well as original and insightful.
The written response must follow the following formatting guidelines:
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Microsoft Word document
Title page
Double-spacing, 12-point Times New Roman or Arial font, one-inch margins
APA in-text citations
Reference page
APA reference list of at least two scholarly references
Page length requirements: 1–2 pages, in addition to the title page and reference
page Unit 1
Case study:
A client, Mal Manley, fills out his client questionnaire for the previous year and on it
provides information for the preparation of his individual income tax return. The IRS has
never audited Mal’s returns. Mal reports that he made over 100 relatively small cash
contributions totaling $24,785 to charitable organizations. In the last few years, Mal’s
charitable contributions have averaged about $15,000 per year. For the previous year,
Mal’s adjusted gross income was roughly $350,000, about a 10% increase from the year
before.
Required: Applying Statements on Standards for Tax Services No. 3, determine whether
you can accept at face value Mal’s information concerning his charitable con-tributions.
Now assume that the IRS recently audited Mal’s tax return for two years ago and denied
75% of that year’s charitable contribution deduction because the deduction was not
substantiated. Assume also that Mal indicates that, in the previous year, he con-tributed
$25,000 (instead of $24,785). How do these changes of fact affect your earlier decision?
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Formatting
Title Page
Citation
Outline
