Tax Accounting II Case Essay Example | Topics and Well Written Essays - 500 words

Tax Accounting II object lesson - Essay ExampleSchneider as his tax professional in the latest filing of his income tax returns.1 The accountant may be considered to have intimacy of things done in the past about deducting the cost of graphics as part of deductible expenses. As to whether on that point could be tax assessment by IRS becaexercising of perhaps underreported income due to higher reported expenses in the past, the same should be viewed as tax avoidance because there was really no intention to avoid or cheat on taxes. Moreover, it could be inferred from the case occurrence that claiming the cost of artworks as deductible business expense is allowed if treated or given as a kind of employee compensation.2The difference between tax avoidance and tax evasiveness is that the former is legal as a way to reduce tax but the latter is against the law because there is an intention to lift the government for the correct even outment of taxes. In the case of Mr. Conor, he d id not intend not to pay taxes, he claimed in good faith the cost artwork as business expense with the presumed k instantlyledge of the accountant although the latter failed to object in previous years. In tax avoidance, which is a legitimate minimizing of taxes, the taxpayer should use methods approved by the IRS.3 Mr. Conor was only lacking in knowledge of method on how deduction could be made legitimate. Thus his CPA said that expense is allowed if given as employee compensation. It would have been tax evasion if Mr. Conor was not allowed at all to have claimed as expense the cost of artworks. The same would amount to account expenses that are not allowed and thereby understating income and the related tax. The fact also that half of the cost of artwork was now claimed in the latest tax return with the consent of the CPA should support the argument that the method utilize earlier was an allowed by and therefore a tax avoidance was more applicable than tax evasion.4This tec view s that Mr. Schneider has not fully complied with the professional norms of