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You are a CPA working for a local firm and have been assigned the 2019...

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Accounting

You are a CPA working for a local firm and have been assigned the 2019 tax return of Bobby Crosser. In

going over the data that Bobby gave the firm, you are surprised to see that he has reported no dividend

income or gains from the sale of stock. You recently prepared the 2019 gift tax return of Bobbys aunt

Ester. In that return, Ester reported a gift of stock to Bobby on January 6, 2019. The stock had a fair

market value of $50,000, and Esters basis in the stock (which became Bobbys basis) was $5,000.

1.

What are your obligations under the

Statements on Standards for Tax Services

? In your

discussion, state which standard(s) may apply to this situation and what might result from

applying the standard(s).

This can be done in approximately one single spaced page.

2. Based on your findings,

write an appropriate one-page single spaced letter to Bobby Crosser

that explains your findings and requests any additional information.

The

Statements on Standards for Tax Services

can be found on Angel. You should skim these

statements to determine which have applicability to this case and then include references to those

statements in your memo.

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