Question about tax audit and question about deductions/financial planning.

Question about tax audit and question about deductions/financial planning.

1. Ralph and Diane Hearst have been notified that they are being audited. What should they do to prepare for the audit? (10 points)

Submit a response to the following (20 points):

2. Create a list of the deductions that you are eligible for this year, those that might apply in your financial planning timeline 5 years from now, and those that might apply 10 years from now. How can awareness of your eligibility for deductions impact your long-term financial planning?

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Questions
Preparing for Audit
In this scenario, Ralph and Diane Hearst have been told that they are about to have their financial books or statements audited. Such auditing may be conducted by an external organization pursuant to some of the laws and regulations for taxation purposes.

(469 words)