3) Document Request and Background Research

c.For each of the 12 deduction items and 5 income items that you have selected for audit, list in a few sentences list:

4) The Pre-Audit Phone Call

Assume that you will be using a classic investigative technique – the Surprise Phone Call.

Explanation & Answer length: 6 Pages3 attachmentsSlide 1 of 3

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Do you similar assignment and would want someone to complete it for you? Click on the ORDER NOW option to get instant services at essayloop.comForm 1040 Department of the Treasury ‘ Internal Revenue Service (99) U.S. Individual Income Tax Return For the year Jan 1 – Dec 31, 2014, or other tax year beginning 2014 , 2014, ending Your first name and initial OMB No. 1545-0074 IRS Use Only , 20 ‘ Do not write or staple in this space. See separate instructions. Last name Your social security number JOSEPH D PLUMMER 133-50-5453 If a joint return, spouse’s first name and initial Last name Spouse’s social security number Home address (number and street). If you have a P.O. box, see instructions. Apartment no. 3501 CARIBEH DRIVE City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). ENCINO, CA 91436 Foreign country name Foreign province/state/county Foreign postal code J Make sure the SSN(s) above and on line 6c are correct. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Filing Status Check only one box. Exemptions 1 2 3 Single 4 Married filing jointly (even if only one had income) Married filing separately. Enter spouse’s SSN above & full name here. . G 5 Spouse X Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this child’s name here. .. G Qualifying widow(er) with dependent child 6a X Yourself. If someone can claim you as a dependent, do not check box 6a. . . . . . . . . . . Boxes checked on 6a and 6b. . . No. of children on 6c who: b Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) b if (2) Dependent’s (3) Dependent’s c Dependents: child under ? lived social security relationship age 17 with you. . . . . . number to you qualifying for child tax cr ? did not Last name (1) First name (see instrs) live with you If more than four dependents, see instructions and check here. . . G JOSEPH PLUMMER II JOSEPHINE PLUMMER 1 2 due to divorce or separation (see instrs). . . . Dependents on 6c not entered above. . Add numbers on lines claimed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . above. . . . . . G 542-12-3232 Son 546-31-3327 Daughter X X d Total number of exemptions 7 Wages, salaries, tips, etc. Attach Form(s) W-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Income 8 a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a b Tax-exempt interest. Do not include on line 8a. . . . . . . . . . . . . . 8b 9 a Ordinary dividends. Attach Schedule B if required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Attach Form(s) b Qualified dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b W-2 here. Also attach Forms 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . 10 W-2G and 1099-R 11 Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 if tax was withheld. 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 If you did not 13 Capital gain or (loss). Att Sch D if reqd. If not reqd, ck here . . . . . . . . . . . . . . . . . . . . . . . . G 13 get a W-2, 14 Other gains or (losses). Attach Form 4797. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 see instructions. 15 a IRA distributions. . . . . . . . . . . . 15 a b Taxable amount. . . . . . . . . . . . . 15 b 16 a Pensions and annuities . . . . . 16 a b Taxable amount. . . . . . . . . . . . . 16 b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 17 18 Farm income or (loss). Attach Schedule F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 a Social security benefits . . . . . . . . . . 20 a b Taxable amount. . . . . . . . . . . . . 20 b 21 Other income 21 22 Combine the amounts in the far right column for lines 7 through 21. This is your total income. . . . . . . . . . . . . G 22 23 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Adjusted 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ . . . . . . . . . . . . . . . . . . . . 24 Gross 25 Health savings account deduction. Attach Form 8889. . . . . . . . 25 Income 26 Moving expenses. Attach Form 3903 . . . . . . . . . . . . . . . . . . . . . . . 26 27 Deductible part of self-employment tax. Attach Schedule SE. . . . . . . . . . . . . . 27 8,604. 28 Self-employed SEP, SIMPLE, and qualified plans. . . . . . . . . . . 28 29 Self-employed health insurance deduction. . . . . . . . . . . . . . . . . . 29 30 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . 30 31,203. 31 a Alimony paid b Recipient’s SSN . . . . G 121-43-4341 31 a 240,000. 32 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 33 Student loan interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 34 Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . . . . . 34 10,219. 35 Domestic production activities deduction. Attach Form 8903. . . . . . . . . . . . . . 35 36 Add lines 23 through 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 37 Subtract line 36 from line 22. This is your adjusted gross income. . . . . . . . . . . . . . . . . . . . . G 37 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. FDIA0112L 12/29/14 3 750,000. 114,217. 303. 191,095. 312,032. 1,367,647. 290,026. 1,077,621. Form 1040 (2014) Form 1040 (2014) Tax and Credits Standard Deduction for ‘ ? People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. ? All others: Single or Married filing separately, $6,200 Married filing jointly or Qualifying widow(er), $12,400 Head of household, $9,100 Other Taxes Payments If you have a qualifying child, attach Schedule EIC. Refund Direct deposit? See instructions. Amount You Owe Third Party Designee Sign Here Joint return? See instructions. Keep a copy for your records. JOSEPH D PLUMMER 38 Amount from line 37 (adjusted gross income). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 a Check You were born before January 2, 1950, Blind. Total boxes Spouse was born before January 2, 1950, if: Blind. checked G 39 a b If your spouse itemizes on a separate return or you were a dual-status alien, check here . . . . . . . . . G 39 b Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . . . . . . . . . . . . . . . . . . . Subtract line 40 from line 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instrs. . . . . . Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Tax (see instrs). Check if any from: a c Form(s) 8814 b Form 4972 . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Alternative minimum tax (see instructions). Attach Form 6251. . . . . . . . . . . . . . . . . . . . . . . . . . 46 Excess advance premium tax credit repayment. Attach Form 8962. . . . . . . . . . . . . . . . . . . . . . 47 Add lines 44, 45 and 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 48 Foreign tax credit. Attach Form 1116 if required. . . . . . . . . . . . . 48 49 Credit for child and dependent care expenses. Attach Form 2441 . . . . . . . . . . 49 50 Education credits from Form 8863, line 19. . . . . . . . . . . . . . . . . . 50 51 Retirement savings contributions credit. Attach Form 8880. . . 51 52 Child tax credit. Attach Schedule 8812, if required . . . . . . . . . . 52 53 Residential energy credits. Attach Form 5695. . . . . . . . . . . . . . . 53 40 41 42 43 54 Other crs from Form: a 54 3800 b 8801 c 55 Add lines 48 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Subtract line 55 from line 47. If line 55 is more than line 47, enter -0-. . . . . . . . . . . . . . . . . . G 57 Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Unreported social security and Medicare tax from Form: a 8919. . . . . . . . . . . . . . . . . . . . . . . 4137 b 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required. . . . . . . . . . . . . . . . . . . 60 a Household employment taxes from Schedule H. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . . . . . . . . . . . . X ……….. 61 Health care: individual responsibility (see instructions) Full-year coverage 62 Taxes from: a X Form 8959 b Form 8960 c Instrs; enter code(s) 63 Add lines 56-62. This is your total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 64 Federal income tax withheld from Forms W-2 and 1099 . . . . . 64 236,250. 65 2014 estimated tax payments and amount applied from 2013 return. . . . . . . . 65 66 a Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 a b Nontaxable combat pay election . . . . . G 66 b 67 Additional child tax credit. Attach Schedule 8812. . . . . . . . . . . . 67 68 American opportunity credit from Form 8863, line 8. . . . . . . . . 68 69 Net premium tax credit. Attach Form 8962. . . . . . . . . . . . . . . . . . 69 70 Amount paid with request for extension to file . . . . . . . . . . . . . . 70 71 Excess social security and tier 1 RRTA tax withheld. . . . . . . . . 71 72 Credit for federal tax on fuels. Attach Form 4136. . . . . . . . . . . . 72 73 Credits from Form: a 73 Reserved c Reserved d 2439 b 74 Add lns 64, 65, 66a, & 67-73. These are your total pmts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 75 If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid . . . . . . . . . . . . . . . 76 a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here. . G G b Routing number . . . . . . . . XXXXXXXXXX G c Type: Checking Savings G d Account number. . . . . . . . XXXXXXXXXXXXXXXXXXXXXXXX 77 Amount of line 75 you want applied to your 2015 estimated tax. . . . . . . . G 77 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions. . . . . . . . . . . . . . . G 79 Estimated tax penalty (see instructions). . . . . . . . . . . . . . . . . . . . 79 Do you want to allow another person to discuss this return with the IRS (see instructions)?. . . . . . . . . . . Designee’s name FDIA0112L 12/29/14 Phone no. G 40 41 42 575,325. 502,296. 0. 43 502,296. 44 45 46 47 151,182. 240. 151,422. 55 56 57 58 59 60 a 60 b 61 62 63 151,422. 17,208. 6,538. 175,168. 236,250. 61,082. 61,082. 74 75 76 a 78 X No Yes. Complete below. Personal identification number (PIN) G G Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number A Spouse’s signature. If a joint return, both must sign. Print/Type preparer’s name Paid Preparer Use Only Page 2 133-50-5453 38 1,077,621. SALESMAN Date Preparer’s signature Self-Prepared Firm’s name If the IRS sent you an Identity Protection PIN, enter it here (see instrs) Spouse’s occupation Date Check if PTIN self-employed G Firm’s address G Firm’s EIN G Phone no. Form 1040 (2014) SCHEDULE A OMB No. 1545-0074 Itemized Deductions (Form 1040) Department of the Treasury Internal Revenue Service (99) 2014 G Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. G Attach to Form 1040. Attachment Sequence No. Name(s) shown on Form 1040 Your social security number JOSEPH D PLUMMER 133-50-5453 Medical and Dental Expenses Taxes You Paid Interest You Paid Note. Your mortgage interest deduction may be limited (see instructions). Gifts to Charity If you made a gift and got a benefit for it, see instructions. 1 2 3 07 Caution. Do not include expenses reimbursed or paid by others. Medical and dental expenses (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Enter amount from Form 1040, line 38. . . . . . 2 Multiply line 2 by 10% (.10). But if either you or your spouse was born before 3 January 2, 1950, multiply line 2 by 7.5% (.075) instead 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . 5 State and local (check only one box): a X Income taxes, or 5 50,250. ………………………… b General sales taxes 6 Real estate taxes (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . 6 25,221. 7 Personal property taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Other taxes. List type and amount G 8 9 Add lines 5 through 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Home mtg interest and points reported to you on Form 1098. . . . . . . . . . . . . . . . 11 Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying number, and address G 10 4 0. 9 75,471. 93,212. 11 28,443. 12 12 Points not reported to you on Form 1098. See instrs for spcl rules. . . . . . . . . . . . 13 Mortgage insurance premiums (see instructions) . . . . . . . . . . . . . . 13 14 Investment interest. Attach Form 4952 if required. 14 (See instrs.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Add lines 10 through 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 Gifts by cash or check. If you made any gift of $250 or more, see instrs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,655. 16 17 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Carryover from prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 0. 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Job Expenses 21 Unreimbursed employee expenses ‘ job travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if and Certain Miscellaneous required. (See instructions.) G Deductions 21 22 Tax preparation fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 500. 23 Other expenses ‘ investment, safe deposit box, etc. List type and amount G 402,138. 19 Add lines 16 through 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Casualty and Theft Losses Other Miscellaneous Deductions Total Itemized Deductions 24 25 26 27 28 23 24 Add lines 21 through 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500. 1,077,621. Enter amount from Form 1040, line 38. . . . . 25 26 Multiply line 25 by 2% (.02) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,552. Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . . . . . . . . . . . . . . . . . . . . . . 27 Other ‘ from list in instructions. List type and amount G 28 29 Is Form 1040, line 38, over $152,525? Reduction No. Your deduction is not limited. Add the amounts in the far right column -23,939. for lines 4 through 28. Also, enter this amount on Form 1040, line 40. 29 ………………….. Yes. Your deduction may be limited. See the Itemized Deductions Worksheet X in the instructions to figure the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G BAA For Paperwork Reduction Act Notice, see Form 1040 instructions. FDIA0301L 12/29/14 0. 0. 575,325. Schedule A (Form 1040) 2014 SCHEDULE B (Form 1040A or 1040) Department of the Treasury Internal Revenue Service (99) 2014 G Attach to Form 1040A or 1040. G Information about Schedule B and its instructions is at www.irs.gov/scheduleb. Name(s) shown on return Attachment Sequence No. 1 133-50-5453 Amount List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer’s social security number and address G BANK OF AMERICA CEDAR BANK COMMERCE VALLEY BANK WELLS FARGO (See instructions for Form 1040A, or Form 1040, line 8a.) Note. If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm’s name as the payer and enter the total interest shown on that form. 5. 81,221. 32,932. 59. 1 2 3 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form 1040, line 8a. . . . . . . . . . . . . . . . . . G Note. If line 4 is over $1,500, you must complete Part III. Part II 08 Your social security number JOSEPH D PLUMMER Part I Interest OMB No. 1545-0074 Interest and Ordinary Dividends 5 2 3 4 114,217. 114,217. Amount List name of payer G AMERICAN GENERAL 303. Ordinary Dividends (See instructions for Form 1040A, or Form 1040, line 9a.) Note. If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm’s name as the payer and enter the ordinary dividends shown on that form. 5 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line 9a. . . . . . . . . . . . . . . . . . . G Note. If line 6 is over $1,500, you must complete Part III. You must complete this…
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