Solutions Manual with Instructor

Solutions Manual with Instructor Manual for Pearson's Federal Taxation 2025 Corporations, Partnerships, Estates, & Trusts 38 th Edition By Mitchell Franklin, Luke Richardson (All Chapters 1- 15, 100% Original Verified, A+ Grade) All Chapters are Reverse Arranged.Corporate Chapters 15-1

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Pearson’s Federal Taxation 2025 Corporations, Partnerships, Estates & Trusts Luke E. Richardson Mitchell Franklin

Instructor’s Resource Manual Mitchell Franklin Instructor Manual Reverse Arranged: Chapter 15 to 1 2 / 4

C:IO15-1

Copyright © 2025 Pearson Education, Inc.

Chapter C:15

Administrative Procedures

Learning Objectives

After studying this chapter, the student should be able to:

• Describe the role of the IRS in our tax system.

• Discuss how returns are selected for audit and the alternatives available to tax

payers whose returns are audited.

• Explain the IRS’s ruling process.

• Identify the due dates for filing tax returns and paying taxes.

• Distinguish the various types of penalties imposed by the IRS.

• Calculate the penalty for not paying estimated taxes.

• Describe the more severe penalties, including the fraud penalty.

• Recognize when the statute of limitations applies.

• Explain from whom the government may collect unpaid taxes.

• Apply the professional and governmental standards for tax practitioners.

Areas of Greater Significance

• Students should acquire a clear understanding of the role of the IRS and the audit

process. Penalties are assuming a more important role in the revenue raising process and should be introduced to the student at this point.

• The Statement on Standards for Tax Services is now discussed more fully in this

chapter. While the standards are not legally enforceable, they may be cited in a negligence lawsuit and failure to follow them may be grounds for the termination or suspension of one’s professional license.

• The unauthorized practice of law is a significant issue that is being raised more

often. Students should understand the areas of tax practice that an accountant is qualified to practice in and when an attorney should be called in to lend their expertise. 3 / 4

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Copyright © 2025 Pearson Education, Inc.

Areas of Lesser Significance

In the interest of time, the instructor may determine that the following areas are best

covered by student reading, rather than class discussion:

• Tax practice issues (statutory provisions concerning tax return preparers, rules of

Treasury Department Circular 230).

• Liability for tax.

Problem Areas for Students

The following areas may prove especially difficult for students:

• Payment requirements for estimated taxes.

• Differences between civil and criminal fraud.

Highlights of Recent Tax Law Changes

Beginning on January 1, 2024 the AICPA released revised Statements on Standards for Tax Services. The standards have been reduced from seven to four standards and re-written. A link to the standards is provided in Appendix E in the textbook.

Teaching Tips

• Letter rulings: Refer students back to page C:1-12 for guidance on how to locate

copies of letter rulings. p. C:15-9.

• Without the existence of a failure-to-pay penalty, taxpayers could be more

aggressive with the positions they take on their tax returns. For example, if a taxpayer took an aggressive position and was later audited, he would only have to pay additional taxes plus interest – essentially paying back a loan from the government. The failure-to-pay penalty has increased the risk to those taxpayers who take aggressive positions on their tax returns. p. C:15-16.

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