Discussion Question 1-27 State Income Tax Return Disclosure of Internet Purchase
ID: 2349867 • Letter: D
Question
Discussion Question 1-27 State Income Tax Return Disclosure of Internet Purchases; Client Refusal to Answer Tax Return Question and Ethical Implications (LO. 4, 5) A question on a state income tax return asks the taxpayer if he or she made any out-of-state Internet or mail-order catalog purchases during the year. The question requires a yes or no answer, and if the taxpayer answers yes, the amount of such purchases is to be listed. a. Does such an inquiry have any relevance to the state income tax? SelectYesNo b. Your client, Harriet, wants to leave the question unanswered. As the preparer of her return, how do you respond? As the preparer of the state income tax return, you (Select: should not or should) leave questions unanswered.Explanation / Answer
Yes Yes Yes No