3.2 SUBSTANTIATION AND DISCLOSURE Flashcards
1
Q
WHAT IS SUBSTANTIATION?
A
BEING ABLE TO PROVIDE THE IRS WITH DOCUMENTARY PROOF OF TAXABLE INCOME, DEDUCTIONS AND CREDITS, AND TAX POSITIONS TAKEN ON A RETURN.
2
Q
WHAT ARE THE REQUIREMENTS TO REPORT FOREIGN BANK ACCOUNTS?
A
TO REPORT FOREIGN ACCOUNTS, TAXPAYERS MUST COMPLETE AND FILE A REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS. USING FINCEN FORM 114 IF THE AGGREGATE VALUE OF ALL FOREIGN FINANCIAL ACCOUNTS EXCEEDS 10K.
EXCEPTIONS: IRA, TAX QUALIFIED RETIREMENT PLANS, GOVERNMENT ENTITY, MILITARY