Tax Payment

Overview
The role of a tax preparer is to become well-versed in tax theories and tax laws. It takes time to familiarize yourself with the extensive documentation found in the two primary VITA tax
resources: IRS Publication 4012 and IRS Publication 4491. It takes practice and exposure to a variety of taxpayer scenarios. Some scenarios contain instances of unique income opportunities such as stocks/bonds/cryptocurrency, retirement, tips, expenses related to self-employment income, or life events such as a health savings accounts, first-time homebuyer, or student loans. Each unique circumstance will challenge you to dig deeper into your resource to find the best ways to reduce the taxpayer’s tax liability.
Directions
This assignment will prepare you for the Advanced Test by allowing you to critically preview the scenarios provided and to plan your strategy to answer the questions associated with each scenario. Begin by opening Form 6744 and review scenarios 1–6 in the Advanced Course Scenarios section. Select two scenarios for this assignment. This will give you a head start on completing the Advanced Test that you will complete in Module Five. You will analyze the individual scenarios and evaluate the questions posed for each scenario. Then you will explain how you would use your resources (IRS Publications) to find solutions to the questions. Completing the answer sheet is optional for this module, but it will be due in Module Five.
At least one of the scenarios selected for this assignment should contain a unique circumstance, such as income opportunities, stocks/bonds/cryptocurrency, retirement, tips, expenses related to self-employment income, or life events such as a health savings accounts, first-time homebuyer, or student loans.
Specifically, you must address the following rubric criteria:

A. Identify the scenario you selected by number.
B. Explain what is unique about this taxpayer.
C. Specify any unique circumstances, if applicable.

A. What information is unclear or missing if any?
B. Which answers can you find by reading the scenario?
C. Which questions will require research?
D. Where will you look for the answers in Publication 4012? (Name the tab and title of section.)

A. Identify the scenario you selected by number.
B. Explain what is unique about this taxpayer?

C. Specify any unique circumstances if applicable.

A. What information is unclear or missing if any?
B. Which answers can you find by reading the scenario?
C. Which questions will require research?
D. Where will you look for the answers in Publication 4012? (Name the tab and title of section.)

5. Explain in each taxpayer circumstance.
   A. Show how you approach a problem by explaining your thought process.
   B. Explain each step of the process and how it will vary depending on the taxpayer’s circumstances.