CONTENT:
Response to IRS audit letter Name: Institution: Date: There is no prescribed valuation of foreign currency exchange rate by the IRS, but valuation method used has been applied consistently in line with the requirements of the IRS. Thus, the valuation used the prevailing market rates in translating the currencies. For instance those transactions appearing once were translated using the prevailing rate of the day and those taking place throughout the year occurred through an average currency exchange rate (Hoffman et al., 2010). In addition, the taxation of the foreign income takes into account the time of income realization. Thus, it is prudent to look into the aforementioned issues in the IRS audit report to avoid paying penalties on my part and clarify on taxation matters affecting foreign business operations. Taxation ...