Taxation Essays (Examples)

Taxation

An alien is a person who is neither an American national nor citizen. A non-resident alien is a person who has not qualified after taking the presence examination or the green card evaluation. The American government taxes non-resident aliens only on earnings from U.S. commerce sources. Consideration of income is effective based on commerce or trades within the U.S.A. And is ineffective based on income outside USA sources (Fellows, 2012). For non-resident aliens, taxing of their income is independent of efficiency of connection of the alien's income to U.S. trade or commerce sources. It is succinct that USA tax regime differs for resident and nn-resident aliens.

Income that is properly linked to a USA commerce or trade is subject to a flat legislative tax of 30% on the total amount earned without a deduction executed for related expenses. Decreased tax rates exist depending on the type of income and…

References

Cch Tax Law Editors. (2009). Income Tax Regulations (Winter 2009 Edition) (Six Volume Set).

London: CCH.

Fellows, M. (2012). Taxing America. New York, NY: NYU Press.

Johnson, L.M. (2008). Federal Tax Course (2009). London: CCH.

Taxation in the United States

The taxation system of the United States of America is flawed in many ways; meanwhile there are some benefits of this system as well. The current taxation system of the United States needs to be analyzed to point out the flaws in the system. The main purpose of this paper is to discuss the current components of this system with respect to the flaws and good things about it, to discuss the problems relevant to the particular taxes and what can be done to solve these problems. efore we go on to analyze the system, it is important for us to know the components of the taxation system and the types of taxes that are imposed on the people in the country.

Overview of the Current System

The United States of America is known as a federal republic. This implies that it is composed of…

Bibliography:

"Effective tax rates: income, payroll, corporate and estate taxes combined." Peter G. Peterson Foundation. July 01, 2013.

Edwards, Chris. "Options for Tax Reform," Cato Institute Policy Analysis no. 536, February 24, 2005.

Matthews, Dylan. U.S. tax code isn't as progressive as you think. The Washington Post, 2013.

Olen, John. "America's Tax System Must Be Improved." Economy in Crisis, 2013.

In this way, taxation on sellers also diminishes the market in question, as both supply and demand lower to reach the new equilibrium.

The ultimate effect of all forms of taxation on goods is therefore that both buyers and sellers are affected, as the market responds to both changes in demand and supply, regardless of which carries the initial effect.

II. PRICE CONTROL and TAXATION on MILK

According to Chris Edwards (2007), the milk market has been affected by government-imposed price controls since the 1930s, with the implementation of "marketing order" regulations. According to these, minimum prices were imposed upon diary processors, which were payable to farmers. This policy limits marketing competition by imposing a minimum government price upon dairy products. In other words, entrepreneurs are unable to supply dairy products at competitive prices and raise demand as a result. Another effect of this price control factor on the market…

Sources

Dunlevy, Sue & Dickinson, Alex. (2008, Sept. 25). Milk price set to drop after axing of tax. The Courier Mail.  http://www.news.com.au/couriermail/story/0,23739,24398026-953,00.html 

Edwards, Chris. (2007, June 29). The Madness of American Milk Prices. Cato Institute.  http://www.cato.org/pub_display.php?pub_id=8479

The tax holiday was more likely to benefit families that had "the disposable income to buy an $80 sweater for their teen"(De La Torre 2008). To extend this argument, the effect upon equilibrium price and quantity demanded by such non-price sensitive consumers was negligible, resulting in no net benefit to the state's retailers or middle-class consumers. The sales tax holiday on clothing was as equally regressive as a sales tax on clothing -- someone buying a $500 pair of Prada boots gets the same exemption as a poor woman buying her child a much-needed new school uniform, during the holiday period, in contrast to the periods of time when the sales tax was imposed on goods over $75.

But why places a sales tax on clothing, any form of clothing at all? Making the exemption on clothing on items only below a certain amount seems arbitrary. Perhaps shoes in excess…

Works Cited

Chamberlain, Andrew. (31 Dec 2006)." New York Democrats call for permanent sales tax holiday." Tax Policy Blog: Official weblog of the Tax Foundation. Retrieved 15 Sept 2008.  http://www.taxfoundation.org/blog/show/1325.html 

De La Torre, Vanessa. (2008). "State's tax holiday on clothes, shoes begins Sunday."

The Hartford Courant. Retrieved 15 Sept 2008.  http://www.courant.com/news/local/hc-cttaxfree0816.artaug16,0,2152521.story?track=rss 

Exemptions from sales and use taxes." (2008). The State of Connecticut:

2.) Consider implementing a tax which targets tourists and visitors to New Jersey, with the funds being directly allocated to school districts in the state. A hotel and lodging tax, or a sporting ticket tax, if relatively minor and unobtrusive, could easily bridge the gap between New Jersey's stated educational goals, and the funding capacity necessary for their achievement.

3.) Provide attainable goals for students so that the level of educational outcomes is dependent on their drive, ambition, and talent, rather than on the decree of an anonymous lawmaker in Trenton. When the education of an entire generation of students is contingent upon a Congressional body that has become synonymous with futility, we should not be basing the schooling of our children on funding formulas and tax rates.

eferences

Cerf, C.D. New Jersey Department of Education, (2012). Education funding report. etrieved from State of New Jersey website: http://www.nj.gov/education/stateaid/1213/report.pdf

Crawford, C.,…

References

Cerf, C.D. New Jersey Department of Education, (2012). Education funding report. Retrieved from State of New Jersey website:  http://www.nj.gov/education/stateaid/1213/report.pdf 

Crawford, C., Sabrin, M., & Tuneva, E. (2010). Property Taxes in New Jersey: Are Homeowners Paying for School Districts at Disproportionate Rates…Is There Equity in New Jersey. Northeast Business & Economic Association, Morristown, New Jersey.

Goodspeed, T.J. (1998). The relationship between state income taxes and local property taxes: education finance in New Jersey. National Tax Journal, LI (2), 219-238.

Trenton Public Schools, New Jersey Department of Education, (2012). Budget & salary / compensation transparency reporting. Retrieved from Trenton Public Schools website:  http://www.trentonschools.com/index.aspx?folder=382&school=1

Taxation

Impact of taxes on business owners

Tax Implications on Salary and Dividend Payments

The amount of money that a business takes out has important implication of tax amount that the business will be liable to pay. But for the case of sole proprietorships and partnerships, it makes no difference how much or when the money is taken out of the business. After all, owners of both partnerships and sole proprietorships pay personal taxes on their full share of their company's incomes every year. These business structures do not allow for owner salaries but withdrawals which have no tax impact at all (oss, 2007).

For the case of corporate businesses, owners can get money out of their businesses in just a number of different ways each of which has different tax implications. In this case, the business owner and the tax authorities are at cross purposes; the business owner wants…

Reference

Atkinson, B. (2007), Optimal Taxation and the Direct vs. Indirect Tax Controversy, Ottawa

Hoffman, N, (2004), Fiscal Crises, Liberty, and Representative Government, Vintage Books, Boston

McCluskey, W., (2005) Land Value Taxation: An Applied Analysis, William J. McCluskey Books

Parkin, M., (2006), Principles of Microeconomics, Moss Publishers, New York

The total imports will tell you how much how strong the economy is based upon areas that are being heavily taxed. This is because the non-direct taxation system, will tax imports and other items, as a way to raise revenues for the government. (McCann 2006, pp. 37 -- 53) y comparing this number with the information presented earlier, we can see the total effects of the non-direct taxation policy on the economy and the government. When you look at the total number of imports that were being received, it is clear that this figure is following a similar trend as the rest of the economy. With total imports coming in at: $881.6 million for 2007, $876.5 million for 2008 and $735.9 million for 2009. The below chart illustrates the overall declines that were seen with imports during this time. (Cayman Islands Annual Economic Report 2007) (Cayman Islands Annual Economic Report…

Bibliography

Cayman Islands Annual Economic Report, 2007, Economics and Statistics Office.

Cayman Islands Annual Economic Report, 2008, Economics and Statistics Office.

Cayman Islands Annual Economic Report, 2009, Economics and Statistics Office.

Gupta, G, 2004, 'Laffer Curve,' Macroeconomics, Tata, New Delhi, pp. 131 -- 133.

Based on that, the original 8% cash transaction would not be considered a reorganization, but the subsequent exchange of stock for the 75% interest in Travis would be considered a non-taxable reorganization. This view was upheld in Chapman v. CIR. This recognizes the principle of continuity of interest that is required. The first transaction, the 8% that was purchased for cash, would not qualify as a reorganization, as it does not represent continuity of interest. In Chapman V. CIR, the court ordered that the 8% interest would need to be liquidated in order for the transaction to be considered a nontaxable reorganization.

If Austin were to liquidate Travis back into Austin, it would qualify as a reorganization, since Austin now owns a controlling interest in Travis. As long as the reorganization plan is adopted after the controlling interest is acquired, it would qualify as a reorganization to absorb Travis into…

Taxation: Should the UK Government estore the 50% Additional ate of Income Tax?

Debate surrounding the controversial 50 pence additional rate of income tax for high income earners hit the limelight again at the beginning of this year following Shadow Chancellor ED Beals' announcement that the Labor Party intended to restore the same if it was elected to power in the 2015 general elections. Addressing journalists in January, the Shadow Chancellor argued that such a move would see the economy raise approximately £10 billion over a period of three years, which would essentially imply that i) the level of national debt would be reduced, and ii) disparities in income and wealth would be minimized through a fully-progressive tax system structured to ensure that "those with the broadest shoulders bear a fairer share of the burden" (Merrick, 2014). The Chancellor's argument and the Labor Party's proposal by extension have, however, received…

References

Ault, A. & Arnold, B.J. 2010. Comparative Income Taxation: A Structural Analysis. AH Alphen: Kluwer International

BBC. 2014. Q & A: Return of the 50p Top Rate of Income Tax? BBC News. Online at:  http://www.bbc.com/news/business-25895480 . Accessed 28th December 2014.

Brewer, M., Browne, J. & Johnson, P. 2012. The 50p Income Tax Rate: What is Known and What will be Known? Institute for Fiscal Studies. Online at:  http://www.ifs.org.uk/budgets/gb2012/12chap9.pdf . Accessed 1st December 2014

Edwards, J. 2014. Finance Bill Debate -- Increase the Top Rate of Income Tax. Jonathan Edwards (Member of Parliament for Carmarthen East and Dinefwr). Online at:  http://www.jonathanedwards.org.uk/finance-bill-debate-increase-the-top-rate-of-income-tax?lang=en . Accessed 1st December 2014

Taxation Discussion

Under Section 706, a partner cannot "change to a taxable year other than that of a partnership in which he is a principle partner unless he establishes a business purpose therefor." Section 444 elaborates. The general rule is that "except as otherwise provided in this section, a partnership may elect to have a taxable year other than the required taxable year." If the deferral period is less than three months. A scenario under which a business might use a different tax year would be tricky to establish, but if there is a business purpose, it can be done. What constitute a "business purpose" is not established under these sections of the code. There could be situations where a business has revenue accrued at the end of the calendar year, but payment in the early part of the next year. That might be a reason why a business would…

References

26 U.S. Code § 706 - Taxable years of partner and partnership. Retrieved May 14, 2016 from  https://www.law.cornell.edu/uscode/text/26/706 

26 U.S. Code § 444 - Election of taxable year other than required taxable year. Retrieved May 14, 2016 from  https://www.law.cornell.edu/uscode/text/26/444 

IRS.gov (2016). S corporation stock and debt basis. IRS.gov. Retrieved May 14, 2016 from https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporation-Stock-and-Debt-Basis

S. citizens who renounced their citizenship and long-term residents who have ended their U.S. resident status for federal tax purposes" (Expatriation Tax, 2011). Different rules apply according to the date upon which one expatriated. People that give up their U.S. citizenship or terminate their long-term resident status for tax purposes after June 3, 2004 are required to confirm to the IS that they have fulfilled all federal tax requirements for the five years before expatriation. If all federal tax requirements have not been fulfilled for the five ears before expatriation, even if the person does not meet the financial thresholds, the person will be subject to the expatriation tax provisions. People that have expatriated should file all tax returns that are due, in spite of whether or not full payment can be made with the return. Depending on a person's circumstances, a taxpayer filing late may meet the criteria for…

References

Expatriation Tax. (2011). Retreived from  http://www.irs.gov/businesses/small/international/article/0,,id=97245,00.html 

Foreign Tax Credit - Choosing To Take Credit or Deduction. (2011). Retrieved from  http://www.irs.gov/businesses/small/international/article/0,,id=97037,00.html 

Income Tax Compliance by U.S. Citizens and U.S. Lawful Permanent Residents Residing

Outside the United States and Related Issues. (1998). Retrieved from  http://www.treasury.gov/press-center/press-releases/Documents/tax598.pdf

Northwest Brands

Avoiding Double-Income Taxation

Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.

Because corporations are considered fictional 'persons' under the law, they are taxed as separate entities. The incomes of their owners (shareholders) and employees (from the most lower-level employees to the members of the boards of directors) are all subjected to income tax. This is called double taxation as income is taxed "once to the corporation itself and then a second time when earnings are paid out to the corporation's owners (shareholders). This is true only for earnings paid out to shareholders in the form of dividends -- that is, profits paid by the corporation to…

References

Double taxation. (2013). INC. Retrieved:

 http://www.inc.com/encyclopedia/double-taxation.html 

What is double taxation? (2013). Nolo. Retrieved:

 http://www.nolo.com/legal-encyclopedia/corporations-faq-29122-8.html

Personal Statement: Master's In Taxation

It is often said that 'there is nothing certain but death and taxes.' I would beg to disagree with the latter statement. Although the existence of taxes may be a reality, the way in which the tax code and accounting standards will change and take shape is anything but certain. Pursuing a master's in taxation would deepen my knowledge of the tax code and enable me to become more flexible in dealing with the inevitable changes that will occur in the profession and tax policy over the next several decades.

The tax code is in a state of transition, and accountants and other finance professionals must be prepared to cope with issues such as the rise in importance and the use of more philosophically-based International Financial Reporting Standards (IFRS) versus the more technically-oriented Generally Accepted Accounting Principles in (GAAP) in the U.S. The increased concern…

Where the charities were directly or indirectly involved in, through their officers in other ventures, the tax debts of such entities were estimated to be $15 million in additional tax debts, mostly payroll taxes. (United States Government Accountability Office, 2007)

There were instances where in spite of findings that the exempted entity was abusing the federal tax system, these organizations continued to have the exempt status. (United States Government Accountability Office, 2007) The rigidity of a trust and the changes in law are contradictory that creates a situation where the intervention of courts becomes necessary. In the case of institutions like the Barnes Foundation for example, the Institution owns art collection, amassed in the beginning of the century by Dr. Albert C. Barnes, has clauses in the establishing of the trust which has the creator's detailed instructions and some restrictions on the use of, the trust and its funds. Charitable…

References

Abbin, Byrle M. (2008) "Income Taxation of Fiduciaries and Beneficiaries, 2008"

CCH.

Braunstein, Samuel L; Burger, Carol F. (2007) "The IRS Gets Less Charitable- New tax rules for charitable deductions create hurdles to taxpayer philanthropy." ABA Journal, Retrieved 10 June, 2009 from  http://abajournal.com/magazine/the_irs_gets_less_charitable/ 

Buckles, Johnny Rex. (2002) "The Case of the Taxpaying Good Samaritan: Deducting

"

Since their inception, a number of LLC statutes have been adopted across the country and becaue of the RULLCA initiative, the various jurisdictional disparities are slowly being replaced with more uniform approaches and interpretations. According to Greubner, LLCs have "evolved [into] a more of a distinct form and less of a hodgepodge of existing corporate and limited partnership rules."

The LLC, though, remains a relatively new governance regime compared to the traditional partnership structure that has been around as a common law form of organization far longer than the first limited partnership statute adopted in 1822.

To date, the remains a paucity of relevant case law adjudicating LLC statutes or agreements; however, recent trends make it clear that there will likely be a growing body of case law in the future as various states hammer out their remaining differences in the inexorable march to universal adoption of the RULLCA.…

(ahn, 2004)

"German, French, Canadian, or even Swedish company will pay a lower corporate tax rate on profits earned in its home country, and little or no tax to its home government on any foreign income." (ahn, 2004) In comparison, an Irish company pays twelve percent tax for income in Ireland and nothing on income from abroad. On the other hand a U.S. company doing business in U.S. And Ireland will pay extra 40% of tax for the profit from Ireland.

The Issue:

The Obama administration has taken a stand that a tax break given to corporate makes them outsource American jobs abroad. The issue concerns the U.S. tax code provision that pertains to the profits of foreign subsidiaries of American corporations. While the profits earned by a corporation in the U.S. are subject to a thirty-five percent tax, the multinational corporation can avoid tax on the profits made overseas.…

References

Carroll, Robert. (2009) Obama Corporate Tax Proposal Would Penalize U.S. Businesses

Who Want to Compete in Global Marketplace. The Tax Foundation. Retrieved 25 November, 2009  http://www.taxfoundation.org/news/printer/24683.html 

Edwards, Chris. (2003) Replacing the Corporate Income Tax with a Cash-Flow Tax. The

Cato Journal, vol. 23, no. 2, p. 291. Retrieved 25 November, 2009

More taxes may also induce more savings and less consumption. However when project money is used inefficiently, then it only adds to the economic problems of the country. "If the resources allocated to the government are used inefficiently, or less efficiently than in private hands, economic growth is diminished and production falls. If additional tax dollars are used for a project that makes no contribution to productive capacity, and if the tax dollars raised prevent some private expenditure or investment that would have provided output and jobs in future years, growth is diminished." (Dunkelberg and Skorburg, 1991)

This is the truth about taxation and recession. Now that we have seen how taxes hurt economic activity in the country, let us see when should taxes be cut to avoid a recession. If the government can see production levels slowly going down and can connect it with lower consumption, it needs to…

Reference

William C. Dunkelberg and John Skorburg How Rising Tax Burdens Can Produce Recession Cato Policy Analysis No. 148 February 21, 1991

It occurs due to the change in effective tax rates in the form of property tax amount related to the market value among the groups of property owners. It is known that the appraised market value in the form of yardstick for the property tax equity was used because it is considered as a reasonable way (Dennis-Escoffier & Fortin, 2007; Mikesell, 2011; Nelson, Collins, & Healy, 2008).

Economic Effects

The tax on property and buildings apart from the land distorts the resource allocation with the presence of older property. The increase in property tax rates because the decline in the desirability of placing capital funds into new buildings while creating an incentive against the upgrading of quality. It further leads to the construction of smaller rooms and apartments as compared to the ones that were not required to pay taxes. Certain communities can have tax bases above averages relating to…

Reference

Ault, H.J., & Arnold, B.J. (2010). Comparative Income Taxation: A Structural Analysis. Kluwer Law International.

Dennis-Escoffier, S., & Fortin, K.A. (2007). Taxation for Decision Makers. Cengage Learning.

Mikesell, J.L. (2011). Fiscal Administration: Analysis and Applications for the Public Sector. Cengage Learning.

Nelson, B.M., Collins, J.T., & Healy, J.C. (2008). Sales and Use Tax Answer Book. CCH.

Internet Taxation in the U.S.A.

Controversy revolves around the taxation of Internet sales activity and Internet access. The question generating this controversy is: Should the Internet be a tax-free zone in the United States? On the side supporting at least a moratorium on Internet taxation are the some members of the Federal Government and some business people. Opposing a completely tax-free zone are some of the state governors and local government officials. This paper will present arguments supporting a tax-free zone and the arguments in opposition to a tax-free zone, the current status of the issue, and the steps required to resolve the issue.

To begin the analysis of the situation, definition of some terms is necessary. When a transaction occurs between a seller and a buyer, the seller may be required to collect applicable state and local sales tax from the buyer. The requirement is based on whether or…

Bibliography

Bartlett, Bruce. Internet Purchases Aren't Exempt From Sales Tax. 1 Mar 2000. NCPA. 21 Feb 2002.

Clausing, Jeri. Lobbying and Confusion Over Internet Taxes Escalate. 1 Feb 2000. The New York Times Company. 21 Feb 2002.

Hardesty, David. Internet Tax Freedom Act Extended. 2 Dec 2001. David Hardesty -- Webmaster. 21 Feb 2002.

Johnston, David Kay. Agreement on Internet Taxes Eludes Deeply Divided Commission. 21 Mar 2000. The New York Times Company. 21 Feb 2002.

Federal Taxation: Corporations, Partnerships, Estates & Trusts

Corporate Acquisitions & eorganizations - Tax planning considerations

Why use a reorganization instead of a taxable transaction

Avoiding the reorganization provisions

eorganization is a concept that is defined by paragraph A of Section 368(a) (1) of the IC as being "a statutory merger or consolidation." To elaborate: A statutory merger involves transfer of seller assets and liabilities to the buyer in exchange for the buyer's stock. A statutory consolidation, on the other hand, involves the two companies transferring their assets to a new one in exchange for the stock of that new one. In both cases, the entity that sells is liquidated. This called reorganization

There are three types of reorganizations, and each of them has their specific reasons for being more beneficial than using the taxable transaction.

The three types are the following:

Type "A" eorganization:

This is primarily of benefit to…

References

Accounting Tools Tax-Free Acquisitions

http://www.accountingtools.com/tax-free-acquisitions

Cooley Alert

 http://www.cooley.com/files/ALERT_Tax-Free%20Reorgs.pdf

To Choose an Accounting Topic That Would Be Excellent for A Dissertation.
Research Topic
Taxation in the digital era is an excellent topic for a dissertation because there is an ongoing debate on whether digital companies are paying their fair share of taxes. Some tax experts believe that digital companies enjoy tax levels close to zero compared to traditional companies, yet they earn huge profits. The underlying principle of corporate taxation is that \"profit should be taxed where value is created\" (Sestakova, 2018). However, digitalization challenges this principle because of it difficult to pin down how and where digital companies create value. Also, digital companies rely heavily on intangible assets, big data, and which is hard to value (Sand- Zantman, 2018). Given this fact, there is a need to research problems that tax accountants face when taxing digital profits.
The above topic is relevant when examined from the technological perspective…

Double Taxation

The author of this report has been asked to define and discuss what it means when referring to "double taxation" with a corporation and its shareholders. Some examples of this will be provided as well. After that is established, comments about all of the above will be offered by the author. Double taxation is an interesting condition with some (but not all) corporations whereby the Internal evenue Service gets two proverbial bites of the apple. While this may seem improper to some, it is part of doing business for these specific types of corporations.

As implied in the introduction, double taxation is something that is very real to shareholders that own a stake in a C-Corporation. What is meant by the term is that income is taxed at the corporate level when it is earned. After that, there is money eventually shifted to the shareholder. When this shift…

References

Investopedia. (2007). Double Taxation Definition -- Investopedia. Investopedia. Retrieved 16

November 2015, from  http://www.investopedia.com/terms/d/double_taxation.asp

3. Third world countries are more likely to rely more heavily upon excise taxes on gasoline, tobacco, and alcohol because those are products that sell very well around the world. These are also products that are in a number of cases, particularly tobacco, that are cheaper than essential items such as water or food. Taxes on tobacco help poor countries who would rely on the taxes more wealthy and more reliant upon tobacco.

4. People in lower and middle income countries are more likely to react to taxation on tobacco because for the consumers of that product in those countries, they will have less income for food and shelter for example. People in wealthier countries can afford the increase; they may hardly notice the increase and if it bothers them on principle, for example, they can afford other alternatives just as easily.

5. Whether or not a government uses consumptive…

References:

Berlinger, Joshua. "Why Smokers Shouldn't be Scared of the WHO's Global Recommendations for Cigarette Taxes." Business Insider, Web, Available from:  http://www.businessinsider.com/who-global-cigarette-tax-2012-9 , 2012. 2013 May 13.

Stolberg, Sheryl Gay. "Wealth Health Organization Calls for Higher Taxes on Tobacco." The New York Times, Web, Available from:  http://www.nytimes.com/2002/02/28/world/world-health-organization-calls-for-higher-taxes-on-tobacco.html , 2002. 2013 May 13.

Consolidated Tax Returns and GoSystems Tax Software

Consolidated Tax Returns

The consolidated tax return, in simple terms, is "a method by which to determine the tax liability of a group of affiliated corporations" (Pratt and Kulsrud 8-2). It is based on the assumption that the business operations of affiliated companies represent a single entity and that, hence, the group's aggregate income ought to be taxed, as opposed to the separate incomes of the member corporations. It would be prudent to mention, however, that the return does not simply report the sum of the taxable incomes of all member corporations as one large, conglomerate entity; rather, it follows a set of special Treasury regulations in determining how to make adjustments for intercompany bargains, and establishing which items to state on a consolidated basis (Pratt and Kulsrud 8-2).

The History of Consolidated Tax Returns

The consolidated tax return traces its origin to…

Works Cited

CPA Practice Advisor. " 2012 Review of Thomas Reuters -- GoSystem Tax RS." CPA Principal Advisor, 2012. Web. 29 August 2014  http://www.cpapracticeadvisor.com/article/10682894/2012-review-of-thomson-reuters-gosystem-tax-rs 

Find Accounting Software. "GoSystem Tax." Find Accounting Software, 2014. Web. 29 August 2014  http://findaccountingsoftware.com/directory/thomson-reuters-professional-software-services/gosystem-tax/ 

Pratt, James, and Kulsrud William. Corporate, Partnership, Estate, and Gift Taxation 2013. 7th ed. Mason, OH: Cengage Learning, 2012. Print.

Thomson Reuters. "The Most Sophisticated Income Tax Software in the Profession: GoSystem Tax RS." Thomson Reuters Inc., 2014. Web. 29 August 2014  https://cs.thomsonreuters.com/gosystem/

As one commentator has stated, the presence of two different sets of accounting rules, each plagued by imprecision and subject to multiple interpretations, gives corporations "two different bites at the apple." (6) What used to be seen as an economically advantageous distinction between tax and financial accounting may now be considered a "credibility gap." (7) (Whitaker, 2005, p. 680)

There have of coarse also been historical defenders of the book-tax gap who are concerned that if tax liability is to closely linked to reported financial statements, the corporate tax lobby might attempt to attack and dissolve the Financial Accounting Standards Board, which has been funded to a large degree and voluntarily by accounting firms and the business community. Sarbanes-Oxley attempted to eradicate this problem by developing a new funding structure, which replaced the old system by replacing these voluntary funds with mandatory fees gleaned from securities issuers.

As the staff…

References

Alexander, N., & Brody, L. (2003). Split-Dollar Redux: CPAs May Find the Benefits a Thing of the Past. Journal of Accountancy, 195(6), 95.

Carpenter, T.D., Fennema, M., Fretwell, P.Z., & Hillison, W. (2004). A Changing Corporate Culture: How Companies Are Adjusting to Sarbanes-Oxley. Journal of Accountancy, 197(3), 57.

Chambers, V., & Crowley, P. (2003). Capitalism and Accounting Reform. SAM Advanced Management Journal, 68(3), 44.

Dennis, a. (2004). Small Firms: Think Big! More Work at Large Firms Means More Opportunity for Smaller Ones. Journal of Accountancy, 197(6), 22.

Fairness in Taxation Act of 2011 was introduced by Jan Schakowsky in order to restore tax fairness through establishing an income tax on federal income tax for individuals with an income of more than $1 million annually. The Illinois Congresswoman introduced the bill in March 2011 as a real solution to the country's revenue crisis at a time when Congressional epublicans were proposing extra tax rates for wealthy and middle- and low-income people. These epublicans were proposing such measures in order to help in footing the bill of the recession and the deficit. One of the major things that the bill seeks to do is to amend the Internal evenue Code to change income tax rates and to amplify the tax rate on people and married taxpayers who earn more than $1 million annually.

Summary of the Fairness in Taxation Act of 2011:

According to the current taxation policy, the…

References:

"Proposed Tax Legislation would Raise Federal Income Tax Rate on Millionaires, Billionaires."

(2011, March 17). Spectrem's Millionaire Corner -- For Investors, About Investors. Retrieved March 28, 2012, from  http://www.millionairecorner.com/article/proposed-tax-legislation-would-raise-federal-income-tax-rate-millionaires-billionaires 

"The Fairness in Taxation Act." (2011, March). Wealth for the Common Good. Retrieved March

28, 2012, from  http://wealthforcommongood.org/wp-content/uploads/2011/03/Fairness-in-Taxation-sign-on.pdf

Oprah Case

In one of her television shows, Oprah Winfrey decided to give away Pontiac G6 Sedans to her audience. From an accounting perspective, its important to determine whether the value of these cars was taxable. Following a comprehensive analysis of taxable and nontaxable income, the cars awarded to the TV audience should have been included in their gross income and subject to federal taxation. According to federal taxation prizes and awards in the form of goods and services must be included in an individual’s income at their fair market value (Bureau of Internal Revenue, 2009). Federal taxation laws stipulate that if an individual wins a prize in a television program, radio quiz program, lucky number drawing, beauty contest or any other event, he/she must incorporate it in his/her income. Based on these taxation regulations, the TV audience should have included the Pontiac G6 Sedans in their gross income and…

Federal Taxation

One of the important procedures involved in Federal taxation is the apprehension of those persons and firms and trusts and others who evade tax payment and thereby break the law. This means that these entities may either conceal facts and/or misrepresent them so that the result would be beneficial to them. Such individuals may under declare their income levels and the earnings and profits that they may have earned during the course of their jobs. They may even over declare the deductions so that any losses would be made up this way. These are all the methods of tax evasions generally used by dishonest individuals who wish to avoid paying taxes to the federal government. However, tax avoidance is another issue wherein individuals and firms exploit the entire tax regime so that they will gain the ultimate advantage.

This way, they break the legal laws that govern taxation…

References

'Criminal Tax Case Procedures" Retrieved from  http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title6/4mtax.htm#6-4.010  Accessed on 18 November, 2004

"Grand Jury Proceedings" (May 6, 1998) Retrieved from  http://www.usdoj.gov/ust/ustp_manual/vol5ch11.htm  Accessed on 18 November, 2004

"Judicial Subpoenas" Retrieved from  http://www.irs.gov/irm/part42/ch03s01.html#d0e28222  Accessed on 18 November, 2004

"Letters Rogatory" Retrieved from  http://www.irs.gov/irm/part42/ch03s02.html  Accessed on 18 November, 2004

Taxation Accounting:

Criminal fraud vs. Civil fraud and taxation of U.S. businesses operating abroad

Tax and Tax Code reforms

When a client's accounts were appraised by the IS, it was discovered that an omission of $100,000 had occurred. Upon such discovery, the first step is to investigate the taxpayer individually so as to collect historic reports of the individual; whether he had engaged in any non-compliance of this sort earlier or this is his first time. To determine whether a criminal prosecution is appropriate, a proof that the misconduct was carried out without an acceptable reason is required (CIMINAL INVESTIGATIONS AND POSECUTIONS OF TAX FAUD CASES GUIDELINES). The following conditions must be kept in view when deciding whether a case can be prosecuted or not:

The validity of the proof of the fraud, the sources and contents used to produce a judgment.

The willingness of the prosecutor to carry on…

References

(n.d.). Department of Taxation and Finance. CRIMINAL INVESTIGATIONS AND PROSECUTIONS OF TAX FRAUD CASES GUIDELINES. Retrieved June 6, 2016, from  http://www.tax.ny.gov/pdf/enforcement/cid_guidelines.pdf 

Dubay. (2014). Conservative Policy Research and Analysis. How Tax Reform Would Help American Families. Retrieved June 6, 2016, from  http://www.heritage.org/research/reports/2014/10/how-tax-reform-would-help-american-families 

Gale. (2002). Brookings - Quality. Independence. Impact. The Tax Treatment of Foreign Income: Issues and Options. Retrieved June 6, 2016, from  http://www.brookings.edu/~/media/research/files/testimony/2002/5/09corporatetaxes-gale/20020509.pdf 

(n.d.). The White House -- whitehouse.gov. Taxes -- whitehouse.gov. Retrieved June 6, 2016, from  http://www.whitehouse.gov/issues/taxes

Even if no actual money changed hands, anything inherited and then sold may have taxable value (Prendergast, 1982; Yin, 2002).

Cases such as Crane v. Commissioner (1947) and Commissioner v. Tufts (1983) reaffirm the concept that there are many different kinds of taxable gains and a large number of individuals fail to realize that anything they acquire must be accounted for (Bittker, 1978; Pino-Anderson, 1982). By addressing the different between recourse and nonrecourse debt, those who find themselves in inheritance situations attempt to avoid taxation on the property they acquire because there was debt owed on that property at the time it was bequeathed to them (Cunningham, 1984; Isaac & O'Leary, 2012). The belief is that the object that was inherited is worth only as much as (or appreciably less) than the debt that was owed on it, so there should not be any taxation of that object (Isaac &…

References

Barris, J. (2008) an expert system for appraisal by the method of comparison. PhD Thesis, UPC, Barcelona

Baum, a., Nunnigton, N., & Mackmin, D. (2011) the Income Approach to Property Valuation (6th Edition). Estates Gazette, London

Bittker, Boris I. (1978). "Tax Shelters, Nonrecourse Debt, and the Crane Case." Tax Law Review 33: 277.

Commissioner v. Tufts, 461 U.S. 300 (1983)

..individuals are taxed in their total annual income minus their net new additions to savings, which equals annual consumption (eiler).

Both forms of consumption tax are not without their troubles and for the most part there is no consensus on the benefits of either alternative. Overall, the quest to reform the current system of taxation rages on. It will be very difficult to reform the current progressive tax system of because it is so steeped in bureaucracy and tradition.

Conclusion

The purpose of this discussion was to examine the progressive income tax. e found that the this tax system operates by taxing a certain percentage of individual income excluding certain deductibles. The investigation detailed the history of progressive taxation and clearly defines progressive taxation. The investigation revealed that the implementation of such taxation was controversial since its inception which came as a result of an amendment to the constitution. In…

Works Cited

Boyd T. 2002. Guide to the Tax Act of 2001: The Economic Growth and Tax Relief Reconciliation Act of 2001. Review of Business. Volume: 23. Issue: 1. Page Number: 33+.

Creedy J., Gemmell N. 2002. The Revenue Responsiveness of Consumption Taxes. Contributors: - author. Journal Title: Economic Record. Volume: 78. Issue: 241. Page Number: 186+.

Fougere M.., Ruggeri Giuseppe C. 1998. Flat Taxes and Distributional Justice. Review of Social Economy. Volume: 56. Issue: 3. Page Number: 277+.

Fratantuono Michael J. The Great Tax Wars: Lincoln to Wilson -- the Fierce Battles over Money and Power That Transformed the Nation. Contributors: - author. Journal Title: Parameters. Volume: 33. Issue: 4. Publication Year: 2003. Page Number: 168+.

Independent Contractor Status Boons

There are numerous reasons as to why it is of critical importance to distinguish whether an individual is an employee or an independent contractor. The first of these pertains to purposes of taxation. Quite simply, there are numerous ramifications that the status of these two options results in for those who select one or the other. In addition to having to fill out numerous different forms (especially if one is an independent contractor), the crux of the taxation issue is as follows. Independent contractors are generally issued 1099 forms. hen one is an independent contractor, numerous taxes are not taken out of his or her earnings -- including social security and other mandated federal taxes. Subsequently, that individual is responsible for paying those taxes on April 15 when one must submit one's tax documentation. Additionally, individuals who receive 1099s are subject to self-employment tax, which is…

Works Cited

Brosuga, Elizabeth. "How to Work as an Independent Contractor in Canada for a U.S. Company. www.articlescholar.com Web. 2012.

approves of the Superfund and the taxation on oil and chemical companies that is used to clean up environmental messes. Even before these specific elements of the author's concern are mentioned, he or she has made a tacit appeal to the sense of fairness expected to be found in the article's readers; using quotes to offset the alliterative phrase "polluter pays" (and calling it in full the "polluter pays' principle," adding one more instance of the repeated "p" to help the phrase stick in readers' minds) and referencing it as the "cornerstone of environmental policy," the author immediately sets out what is right and what is wrong. This is done in such a way that there is no room for argument -- obviously, if someone makes a mess, they should be the ones to clean it up. Throughout the article, the author never engages in any of the more intricate…