Since their taxes are becoming more complex, Jeffrey and Karen are concerned about making a mistake or getting audited. They should
Karen and her husband, Jeffrey, are facing a new income tax situation this year. She is a corporate accountant and Jeffrey is an engineer. Their gross salaries total $89,000. Both graduated from four-year universities five years ago and are still paying off large student loans. She is now attending school part-time to prepare for the CPA exam. The Bosteins incurred considerable expenses in the process of adopting an infant this year, and they have the ongoing expense of daycare. In January of last year they closed on their new home. Although trained as an accountant, Karen's work has not involved income tax preparation. Help them consider the following questions.
A) consult IRS Publication 17, Your Federal Income Tax, the IRS toll-free "hotline," or one of the self-help tax publications to learn more about their tax situation.
B) choose an independent tax specialist to prepare their taxes, because there is more consistency in their training and the quality for their work than that of nationally affiliated specialists.
C) remember that the key to winning an audit is good records to verify the tax form information.
D) Only choices A and C.
E) All of the above choices.
Answer: D
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