1. Review the IRS webinar on Small Business Taxes Lesson 2 at https://www.irsvi

1. Review the IRS webinar on Small Business Taxes Lesson 2 at https://www.irsvideos.gov/Business/SmallBusinessWeek/virtualworkshop/Lesson2 (you may have to copy and past the link into your browser). Identify what you found interesting about this video and give an example of how you would apply what you leaned to a new client you just acquired that is opening a new business and wants to know which expenses they can deduct and what documentation is needed.
2. You are engaged by, Elizabeth Smith, an individual client to do monthly bookkeeping and prepare tax returns for a partnership (E&J LLC). Elizabeth and her brother, Jonathan Smith, are 50-50% partners. Elizabeth effectively controls the partnership and its finances and Jonathan is a passive investor. While you work with Elizabeth monthly,you meet with Jonathan only once a year in connection with tax return preparation. While preparing the tax return, you become aware that Elizabeth is aggressively passing personal expenses through the partnership. What obligation or ethical responsibility do you as the tax preparer have to make sure Jonathan is aware of his sister’s conduct? Is there any authoritative literature supporting this ethics interpretation?
Please include references

Leave a Reply

Your email address will not be published. Required fields are marked *