Benchmark – Ethics in Taxation

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The accounting professional considers ethics to be a fundamental expectation of professionals, especially those with the CPA designation. Taxation is a specialty within the accounting profession where there is a propensity for clients to hide or falsify information or the tax professional to encourage such behavior. For this assignment, you will address three aspects of taxation and ethics. Your paper should be between 500-750 words and address the following items:

  1. Discuss the legal and ethical aspects of accurately reporting income on tax returns using Circular 230 as published by the Department of Treasury (located in the study materials). Discuss at least two items in Section B on Duties and Restrictions and the consequences to tax preparers if they fail to adhere to the guidelines as provided by the Department of Treasury. In your discussion, provide a summary of the items along with examples of the application of the two items in professional practice.
  2. Compare the concepts of “tax avoidance” and “tax evasion.” In your comparison, include examples of each to show the distinction. Use the information you gathered from Circular 230 or refer to the AICPA Statements on Standards for Tax Services (SSTSs) (www.aicpa.org) to support the distinction between tax avoidance and tax evasion.
  3. Discuss how ethics in taxation can correlate to the Christian worldview. In other words, what guidance from a Biblical perspective could be applied to preparation of tax returns for clients? Refer to the GCU website and documents related to Christian worldview in the study materials for assistance on this assignment.

While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

Benchmark Information

This benchmark assignment assesses the following programmatic competencies:

BS Accounting

5.4: Apply basic legal, tax, and ethical concepts to issues in financial reporting.