Ask Accounting Basics Expert

1. C-Ment Industries, Inc. is in the business of designing, manufacturing and selling concrete equipment vehicles. In 2004, C-Ment designed and manufactured a line of concrete pumping vehicles to transfer concrete from cement mixers to specific points within a construction site. The pumping equipment is mounted on a specifically modified truck chassis.

A. C-Ment wishes to ensure that the concrete pumping vehicles are not subject to excise tax under Internal Revenue Code Section 4501.

(1) With what level of the IRS will C-Ment have to deal?
(2) With which office?

B. Assume that C-Ment goes ahead with the sale of the concrete pumping vehicles without seeking assurances as to the excise tax consequences from the IRS. Two years later its excise tax returns are reviewed.

(1) Who determines if the returns should be audited?
(2) To what level of the IRS are C-Ment's returns sent if it is determined that it will be necessary to contact the corporation during the audit process?

C. In discussing this case with the IRS representative, C-Ment has tried to convince the revenue agent that the corporate pumping vehicles are not subject ot excise tax. Because the agent will not concede the issue, C-Ment now seeks to get a higher level of the IRS to advise the agent that "as a matter of law" the vehicles are not subject to excise tax under Section 4051.

(1) What level of the IRS would make that determination?
(2) How would C-Ment go about requesting IRS participation?

D. Assume that eventually the IRS determines that there is additional excise tax due as a result of C-Ment's improper accounting for the concrete pumping equipment. C-Ment wishes to seek review of that determination within the IRS.

(1) What level of the IRS must C-Ment deal with for such formal review?
(2) What formalities must C-Ment follow?

E. Assume that eventually the IRS determination is upheld throughout the formal review and that C-Ment is sent a bill for the tax due from the deficiency.

(1) What level of the IRS sends the bill to C-Ment?
(2) Where can C-Ment make payment of the amount of this bill?

F. Because of financial difficulties, C-Ment is not in a position to pay this bill in full.

(1) With what level or levels of the IRS will C-Ment deal in attempting to resolve the unpaid bill?
(2) If personal contact with C-Ment is required to resolve the problem, who will make the contact?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9406913
  • Price:- $60

Guranteed 36 Hours Delivery, In Price:- $60

Have any Question?


Related Questions in Accounting Basics

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Question requirement 1 read the article in below attachment

Question: Requirement: 1. Read the article in below attachment, and answer the questions in a paper format. Read below requirements before your writing! 2. Not to list the answers, and you should write as a paper format. ...

Question as a financial consultant you have contracted with

Question: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a detailed report ill ...

Question the following information is taken from the

Question: The following information is taken from the accrual accounting records of Kroger Sales Company: 1. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (Febr ...

Assignment 1 lasa 2-capital budgeting techniquesas a

Assignment 1: LASA # 2-Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You ha ...

Assignment 2 discussion questionthe finance department of a

Assignment 2: Discussion Question The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the N ...

Question in this case you have been provided financial

Question: In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operat ...

Question 1what step in the accounting cycle do adjusting

Question: 1. What step in the accounting cycle do Adjusting Entries show up 2. How do these relate to the Accounting Worksheet? 3. Why are they completed at the end of each accounting period? The response must be typed, ...

Question is it important for non-accountants to understand

Question: Is it important for non-accountants to understand how to read financial statements? If you are not part of the accounting/finance function in a business what difference would it make? The response must be typed ...

Question refer to the hat rack cash flow statement 2002 in

Question: Refer to the Hat Rack Cash Flow Statement, 2002 in the text on page 17. Answer the following questions and submit to me via Canvas by the due date. 1. Cash flow from operations? 2. Cash flow from investing? 3. ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As