Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Mike D. Gullible is an airline pilot. While Mike never graduated from college, he does have several professional pilot licenses. For 10 years, Mike filed tax returns properly reporting his W-2 wages. Last year, Mike's brother introduced him to a new return preparer, Cindy Scammer. Ms. Scammer told Mike and his brother that they paid too much in taxes. Ms. Scammer told Mike and his brother that they could create S-Corporations and that they should deposit their wages into the S-corp's bank accounts. Ms. Scammer then prepared a corporate tax return claiming his wages as corporate income. Ms. Scammer also deducted on the corporate 1120-S personal expenses (ie mortgage payment, personal credit cards). The corporate taxable income then flowed through to Mike's personal tax return. By following Ms. Scammer's advice, Mike paid $75,000 less in tax for year 2011. Mike's brother did not follow Ms. Scammer's advice, but he was present when the three of them discussed Ms. Scammer's new tax strategy. Mike's brother did help Mike open the corporate bank account. Mike and Ms. Scammer each signed the corporate and personal tax returns under the penalties of perjury.

REQUIRED:

a. What felony crimes, if any, can Mike, his brother, and Ms. Scammer be charged with? Discuss the evidence that would be presented to satisfy the elements.

b. Did Mike act willfully? What additional problems would you ask Mike to help you make this determination? What documents would you request Mike to produce to help you in this determination?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947904

Have any Question? 


Related Questions in Accounting Basics

Assignmentpaper 1excel spreadsheet and 1-2 pagesconsider

Assignment Paper #1 Excel Spreadsheet and 1-2 pages Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) ...

To understand the accounting equation and its

To understand the accounting equation and its elements QUESTION Mr. "A" starts a new business. Before to start the business operation, he has purchased vehicle Rs. 1,500,000, office premises Rs. 3,000,000, stock of goods ...

Assignment- review of accounting ethics papermany

Assignment- Review of Accounting Ethics Paper Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, or the general public. Sear ...

Task -question 1 - saasu task 1you are working as an

Task - Question 1 - Saasu Task 1 You are working as an accountant in a regional accounting firm and have been approached by the owner of a start-up retail business. They have chosen Saasu as their accounting system and h ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

Task -task covers the application of conceptual and

Task - Task covers the application of conceptual and technical aspects of accounting and the preparation of business financial statements, the appraisal of the use of information technology including spreadsheet software ...

Colllege loans and repayment projecti think that the

COLLLEGE LOANS AND REPAYMENT PROJECT I think that the College Debt issue will be the defining issue impacting young people who go to college today just like the Great Depression/WII was the defining issue for my parent's ...

In the wake of the accounting and finance scandals of the

In the wake of the accounting and finance scandals of the early 2000s, the regulatory environment for businesses changed dramatically to create more accountability and transparency. Agencies like the Securities and Excha ...

In todays technology environment hackers present a

In today's technology environment, hackers present a substantial risk to a firm's accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confid ...

Accountingbullimagine you are a consultant hired to convert

Accounting • Imagine you are a consultant hired to convert a manual accounting system to an automated system. • Suggest the key advantages and disadvantages of automating a manual accounting system. • Identify the most i ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen