Question

Mr. mango discovered a discrepancy between his copy of his tax return and the return filed with the irs by his accountant. The return filed by the accountant reflected a larger refund amount and was direct deposited in the accountant's bank account. Mr. mango is asking for the larger refund amount. You ask Mr. mango questions about the income, expenses, and credits shown on his tax return and suspect that something is wrong. What would you do in this situation?

1) Determine the correct amount of the refund.
2) Advise the taxpayer that he received the correct refund and the case is closed.
3) Seek assistance from your manager.
4) Explain to Mr. mango and his accountant that they committed fraud.
5) Research procedures to investigate possible fraud.
6) None of the above

Answer 1

To address a tax refund discrepancy suggesting accountant misconduct, one must determine the accurate refund amount, seek managerial assistance, and research procedures for investigating potential fraud.

Step-by-step explanation:

If a student encounters a discrepancy between the tax return they have and what was filed with the IRS by their accountant, especially if the return filed shows a larger refund that was deposited into the accountant's account, there are steps that should be followed to address the situation. First and foremost, one needs to determine the correct amount of the refund, which involves carefully reviewing income, expenses, and deductions/credits.

Once the correct refund amount is confirmed and the discrepancy is apparently as a result of the accountant's misconduct, it is then appropriate to seek assistance from a manager or a professional experienced in handling such matters. Additionally, research on procedures to investigate possible fraud should be conducted to understand the proper legal and ethical steps to take. It is imperative that these issues be addressed promptly and thoroughly to ensure fairness and compliance with tax laws.