2.

September 5

1
• Checkpoint?
• Tax administration (1-5)
• Internal Revenue Service (1-5a)
• The Audit Process (1-5b)
• Information matching
• Correspondence audit
• Office audit
• Field audit
• Revenue Agent’s Report (Pg. 1-23)
• Settlement procedures (pg. 1-23)
• The Independent Office of Appeals  resolves disputes based on the hazards of litigation
• Statute of Limitations (1-5c)
• Assessment by the IRS
• Refunds (Pg. 1-24)
• Interest and Penalties (1-5d)
• Interest
• Failure to file a tax return by the due date
• Failure to pay the tax shown on the return
• Negligence penalty
• Other penalties
• Tax Practice (1-5e)
• Ethical standards

2
• Understanding the Federal Tax Law (1-6)
• Revenue needs, economic considerations, social considerations, equity considerations
(wherewithal to pay concept), political considerations, influence of the IRS, influence
of the courts, etc.
 see summary (1-6h)

3
In-class team assignment:
• Pg. 1-39 questions:
• 39 (a, b, c, d)
• 40
• 41 (a, b)