Tax Practice–Procedures, Administration and Sanctions

You will use CCH IntelliConnect (aka CCH Omnitax or AnswerConnect) exclusively for your tax research for this course (access provided through the Library).
Answer the following homework problems thoroughly and in complete sentences. Save your answers in a Microsoft® Word® document and submit them to the Dropbox.
Wesley Snipes was indicted in 2006 for not filing tax returns for the years 1999 through 2004 and filing refund claims for approximately $12 million for 1996 and 1997, claiming that only income for foreign sources was subject to tax.What civil penalties may apply to the taxpayer?
What civil penalties may apply to the preparer?
What criminal penalties may apply to the taxpayer?
What criminal penalties may apply to the preparer?

Jordan’s total tax liability for 2017 was $48,000, of which his self-employment (SE) tax was $8,000. Jordan projects that his total tax liability for 2018 will be $56,000, of which his SE tax will be $10,000. Jordan will have $8,000 of income tax withholdings in 2018. Jordan makes estimated tax payments of $6,000 on April 15, 2018; $10,000 on June 8, 2018; $8,000 on September 15, 2018; and $8,000 on January 9, 2019.Compute Jordan’s required estimated quarterly tax payment.
Compute Jordan’s underpayment (if any) for each quarter.

Identify and discuss each of the seven SSTS standards currently enforceable for AICPA members.
Review SSTS No. 1, Tax Return Positions.What standard does it require a member to use to recommend a tax return position when preparing or signing a return? How does a tax advisor meet this standard?
Discuss how this standard is different (if at all) from Circular 230 or the Internal Revenue Code preparer penalties.