Ahi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $100,000,000, due on March 15. There are no penalties or interest due to the IRS. Custom Essay

Ahi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $100,000,000, due on March 15. There are no penalties or interest due to the IRS. One of Ahis employees approaches you with the following plan to benefit from the so- called float on the large payment due to the government. First, Ahi Corp. will courier its tax return and payment to the U.S. Virgin Islands. There, the tax return will be mailed to the IRS Service Center in Fresno by certified mail on the returns due date, March 15. By doing this, the employee thinks it will take at least six days for the tax return to reach the IRS and for them to cash the $100,000,000 check. Ahi can earn 7 percent after tax on its money, so the interest earned during these six days because of the float is $19,178 per day [($100,000,000 ? .07/ 365 days]. Thus, the total interest earned on the float for six days would be $115,068 ($19,178 ? 6 days). Would you recommend Ahi complete this transaction? What potential ethics issues do you see in this situation? Which AICPA Code(s) of Professional Conduct rules apply in this situation (explain how and why they apply)? Which Statement(s) on Standards for Tax Services apply in this situation (explain how and why they apply)? Cite the specific verse(s) for at least one Biblical principle that you feel is relevant to the situation (explain how and why it applies).

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