...What's New This Year Publication 5101 All tax preparers, Quality Reviewers, instructors, and Site Coordinators must pass the Intake/Interview and Quality Review test. Income Virtual Currency The IRS announced that convertible virtual currencies, such as Bitcoin, would be treated as property and not as currency, thus creating immediate tax consequences for those using Bitcoins to pay for goods and services. Taxpayers having transactions in virtual currencies are out of scope for the VITA/TCE programs. Standard Deduction The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2015 are: * Married Filing Jointly or Qualifying Widow(er) - $12,600 (increase of $200) * Head of Household - $9,250 (increase of $150) * Single or Married Filing Separately - $6,300 (increase of $100) Taxpayers who are 65 and Older or are Blind For 2015, the additional standard deduction for taxpayers who are 65 and older or blind is: * Single or Head of Household - $1,550 (no change) Married taxpayers - $1,250 (increase of $50) Personal ExemptionsThe amount a taxpayer can deduct for each exemption increased to $4,000 for 2015. | Standard Mileage For 2015, the following rates are in effect: * 57.5 cents per mile for business miles driven * 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations (no change) ...
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...Residence in Australia - Individuals Resides test (in and out of Australia) – COMMON LAW TEST * Known as the “residence according to ordinary concepts” test. * The term “resides” is not defined in statute and therefore takes on its ordinary meaning. * Ultimately, the determination of tax residency rests on a question of fact and degree: Miller v FCT (1946). * Factors include, for example: * Time physically spent in Australia * If the person is a visitor, the frequency, regularity and duration of visits: IRC v Lysaght [1928] AC 234 * The person’s family, business and social ties: Levene v IRC. * Maintenance of place of abode in Australia during absences * Family and business ties * Present habits & modes of life * Nationality Domicile test (resident going out of Australia) – COMMON LAW TEST * Under the domicile test, an individual is a resident of Australia if his or her domicile is in Australia, unless the Commissioner is satisfied that the person has a permanent place of abode outside Australia. * “Domicile” is determined according to the Domicile Act 1982: * Domicile of origin at birth OR Domicile of choice. * Permanent is not everlasting (FC of T v Applegate). 183-days Test (moving to Australia) – STATUTORY TEST * Individual is a resident of Australia if he “has actually been in Australia, continuously or intermittently, during more than one-half of the year of income, unless...
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...PERSONAL INCOME TAX IN THE UNITED STATE Group’s member:Nguyễn Như Nam (C)Phan Thu AnNguyễn Thùy DungHoàng Bá SơnNgô Thị Ánh TuyếtDate: 15/12/2014 | Table of Contents PART 1. The review on the tax system in the United States 2 1. The tax administration system in United States 2 2. The tax policy system in United States 3 PART 2. The review of the main content of the tax laws 5 I. The scope of application 5 1. Taxable incomes 5 2. Non-taxable 7 3. Payers. 7 II. The taxation bases 9 III. The tax calculation method 10 1. Gross Income 10 2. Adjusted gross income 17 3. Tax Credits 17 4. Tax Rates 20 5. Deductions and exemptions 22 IV. Tax declaration, submission and refund 32 1. Declaration 32 2. Submission 33 3. Refund 34 REFERENCES 36 PART 1. The review on the tax system in the United States Taxation is an important for each country. Taxation provides a material to distribute economic resources towards those with low incomes or special needs. Taxes provide the revenue needed for critical public services such as social security, health care, national defense, and education. 1. The tax administration system in United States The U.S. system of tax administration is based on the principle of self-assessment. In a self-assessment system, taxpayers calculate and pay their own taxes without the intervention of a tax official. If this is not done appropriately and within the prescribed timeframes, the tax administration...
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...guide........................................................................................ 18.004 Contribution acceptance and deductibility table................................................................ 18.008 Contributions.................................................................................................... ................18.010 Acceptance of contributions............................................................................................. 18.015 Concessional (before-tax) contributions............................................................................ 18.020 Non-concessional (after-tax) contributions........................................................................ 18.030 Contribution caps.................................................................................................... ......... 18.040 Excess contributions tax................................................................................................... 18.050 Tax file numbers and superannuation............................................................................... 18.060 Reportable superannuation contributions.......................................................................... 18.065 Types of contributions.................................................................................................... .. 18.070 Contributions made to non-complying superannuation funds............................................ 18.080 Form of...
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...Iowa Tax Case Could Cost Nation’s Franchises September 2010 Franchising World Franchisors should also expect the impact of the decision in KFC Corp. to extend beyond Iowa. The Iowa Supreme Court in late May heard oral arguments in KFC Corp. vs. Iowa Department of Revenue, a case that could have a substantial financial impact on franchisors across the nation. Iowa asserted that KFC is subject to the state’s corporate income tax based solely on the fact that it received royalties from franchisees in Iowa. The state cited Geoffrey v. South Carolina Tax Commission and related cases in support of its position. However, a victory by the state would represent an extension of those cases because KFC involves licensing agreements between unrelated parties. The KFC case could result in a landmark decision for states attempting to impose income tax on out-of-state franchisors and other similarly situated taxpayers. Background on State Tax Nexus Historically, many franchisors have reported and paid income taxes only in states in which they have a physical presence. This practice is based on a 1992 U.S. Supreme Court case, Quill Corp. v. North Dakota, which held that the Commerce Clause of the United States Constitution barred states from imposing a use-tax collection obligation on out-of-state corporations that had no physical presence in the taxing state. The court held that such corporations did not have the “substantial nexus” with the state that was required under the Commerce...
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...Extended Arm of the United States Government in its Battle against Tax Evaders Professor: Kenneth Lavery Submitted By: Deanne Patterson Week 6: July 31, 2011 Taxes are a major contributor of the American economy. The tax system in the United States depends on voluntary compliance, which means that each citizen is responsible for filing a tax return when required and for determining and paying the correct amount of tax”. (Albrect, Albrect, Albrect & Albrect and Zimbelman). When individuals under report, exaggerate deductions, and hide money in off shore accounts, this is clearly misrepresentation of their income to the Internal Revenue Service (IRS) and is deemed tax evasion. The term “tax evasion” is defined as using illegal means to avoid paying taxes. The U. S. Government loses billions of dollars every year because of tax evasion. Wealthy individuals have engaged in hiding their earning in offshore accounts. This student believes that it is necessary for the United States to continue to monitor and implement laws to improve financial transparency globally in order to curtail tax evasion in addition, the integrity of the federal income tax system continues to be tested by individuals and entities in their attempts to defraud the United States Government. The United States Treasury, IRS, and Congress took a long hard look at the global financial system and determined that UBS, the Swiss bank giant sold tax evasion services to those who did not want to pay their taxes...
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...new legal permanent residents in the United States (Monger and Yankay). Whereas there are more than ten times that amount of illegal immigrants living in the US, estimated to be 11.5 million … with 35,000 illegal immigrants residing in Washington, D.C (Hoefer, Rytina, and Baker: Dane). Noel Merino defines ‘Illegal Immigrants’ as people who enter the United States unlawfully, or may be admitted on a temporary basis and stay past the date they are required to leave (14). Since America is a land of dreams and opportunity, thousands of people have taken the risk to come here and work without legal documentation which has led to various social problems. Illegal workers taking jobs from legal immigrants, the state and federal government losing tax revenue, unfair use of social benefits, fraudulent documents are counterfeited, and countless employers taking advantage of undocumented employees are all problems caused by illegal immigrants and could be fixed by lawful deportation back to their homeland. The main reason individuals enter the United States unlawfully is to seek employment to support themselves and/or their family. While Americans are lawfully eligible to work in the US and legal immigrants/residents have to work hard to prepare their government application to get employment authorization, illegal workers obtain jobs unlawfully. For a legal immigrant to get employment authorization or a work permit, it usually takes approximately...
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...appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C. *a. True b. False 1030. The IRS will issue advanced rulings as to whether a worker’s status is that of an employee or an independent contractor. *a. True b. False 1031. Jake performs services for Maude. If Maude provides Jake with a helper and tools, this is indicative of independent contractor (rather than employee) status. a. True *b. False 1032. A statutory employee is not a common law employee but is subject to income tax withholdings. a. True *b. False 1033. For tax purposes, a statutory employee is not treated the same as a common law employee. *a. True b. False 1034. If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment, an employer-employee relationship does not exist. *a. True b. False 1035. The work-related expenses of an independent contractor will be subject to the 2%-of-AGI floor. a. True *b. False 1036. After she finishes working at her main job, Ann returns home, has dinner, then drives to her second job. Ann may deduct the mileage between her home and second job. a. True *b. False 1037. After the automatic mileage rate has been set by the IRS for a year, it cannot later be changed by the IRS. a. True *b. False 1038. In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider...
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...Writing Methodology To: Pastor and his wife Date: February 10, 2013 Facts: TICKET TO HEAVEN Your client a pastor has not filed tax returns for 2010, 2009, 2008, 2007, 2006, 2005, and 2004. He is married. Their combined income is follows: | |Wife |Pastor |Parsonage Allowance | |2004 |15500 |22000 |8500 | |2005 |16000 |24000 |8700 | |2006 |16500 |26000 |9500 | |2007 |16500 |30000 |12000 | |2008 |20100 |35000 |18000 | |2009 |25000 |38500 |24000 | |2010 |26500 |42000 |30000 | Pastor built his own home in 2008 and there was no mortgage on the house. He has promised you that if make him clean with the IRS, he will guarantee you a place in heaven. Law and Analysis: Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers Ministerial Services Ministerial service, in general, is the...
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...John and Jane Smith From: Alyssa Webster Date: [ 2/2/2014 ] Re: Memo summarizing various tax issues 1. John Smith's Tax Issues Issue (a): How is the $300,000 treated for purposes of federal tax income? Applicable Law and Analysis Code Section 61(a) lists fifteen items that must be included in gross income. Number 1 on this list is compensation for services including fees, commission, fringe benefits and similar items. Number 2 is gross income derived from business (¶4301, reference 1). This is important because the $300,000 was a fee received as compensation for service as a lawyer. Also, as a lawyer, fees received are income derived from business. Compensation for services is taxed when received (under cash basis) and at fair market value (¶4315, reference 1). This means the $300,000 is taxed in the year it is received and at the full value since the fair value of cash is the value at the time of transaction. Conclusion Based on Code Section 61(a) it is understood that the fee that is paid is compensation for the services performed by Mr. Smith and also part of his gross income from business. It is assumed that Mr. Smith will be reporting his taxes as a cash basis tax payer. Since this is the case, the full value of the $300,000 is taxed as gross income from last year (when it was received). Issue (b): How is the $25,000 treated for purposes of federal tax income? Applicable Law and Analysis Code Section 61(a) lists fifteen items that must be...
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...best interest for the organization d. Does an attorney need to sign the organization documents for a Corporation? No, but it may be in the best interest for the organization e. What are the filing fees associated with filing an LLC and a Corporation? $110 for both and the CL-1 is $25 f. Are there annual fees to be paid to the state for an LLC or Corporation? Both LLC and Corporation have to pay $10 fees g. Does a Corporation doing business in SC but formed in another state have to register with the State of South Carolina? Yes, they are required to register every location that their business resides in h. Does a General Partnership have to file anything with the Secretary of State? No. 2. BUSINESS LICENSES AND TAX REGISTRATION For this portion- I chose to run an S CORP for my liquor store which sells tobacco, wine, and liquor. My three employees are my cashier, stocker, and manager. a. In Charleston, all businesses are required to have an annual business license for each location. There is a five step process for obtaining this business license. First- Zoning Compliance. The city encourages every business to confirm the zone and physical layout of the building they buy, lease, or commit to. Second- Renovations might require permits so make sure you have an understanding in which projects will require permits. The City’s Building Inspections Department will confirm if one is needed. Third- Business License Certificate of Occupancy Application...
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...joint tax return in the year of the spouse’s death III. The surviving spouse maintains the cost of the principal residence for six months. A. I, II, and III B. I and II, but not III C. I and III, but not II D. I only A. Incorrect. A taxpayer may file a tax return as a qualifying widow or widower for 2 tax years after the year in which a spouse dies provided the couple qualified to file a joint return for the year of death; that the taxpayer provided over 50% of the cost of maintaining the principal residence of a dependent child or stepchild; and that the taxpayer has not remarried as of the end of the current year. Maintaining the cost of the taxpayer’s principal residence for six months is not sufficient. B. Correct! A taxpayer may file a tax return as a qualifying widow or widower for 2 tax years after the year in which a spouse dies provided the couple qualified to file a joint return for the year of death; that the taxpayer provided over 50% of the cost of maintaining the principal residence of a dependent child or stepchild; and that the taxpayer has not remarried as of the end of the current year. Maintaining the cost of the taxpayer’s principal residence for six months is not sufficient. C. Incorrect. A taxpayer may file a tax return as a qualifying widow or widower for 2 tax years after the year in which a spouse dies provided the couple qualified to file a joint return for the year of death; that the taxpayer provided...
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...How tax strategies impact on the Social Economic Problem? We are going to highlight some social issues and whether the tax strategy is effective in dealing with the issues. The issues discussed include the issue of urbanisation on vacant land, child poverty, inflation and unemployment. Issue 1: Tax Penalty: Eliminate Land Speculation and Vacant Land to avoid Poverty The urbanisation level of 56.25% in South Africa has recorded the world highest level in 2001. The “Apartheid City was a political economy of space which was based on two policies, i.e. racially-based spatial planning and development for some at the expense of others”. Cities were purposely designed to push poor black citizens to the margins of the city. Thus, the black population were materially distanced from advantages normally associated with city life”. With the abolition of Apartheid in 1994, the new government made a commitment to redress these imbalances and inequality and to create cities that are more equal, inclusionary, productive and sustainable. Although 1.6 million houses have been provided since 1994, they have tended to enforce traditional apartheid planning where the poor are still located on the periphery, far removed from employment and economic opportunities. This has resulted in increased urban sprawl and de-densification. Furthermore, the subsidy on public transport was more than double that spent on housing subsidy but the house prices has increased by an average of 20% per year. Land...
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...MULTISTATE CORPORATE TAX COURSE John C. Healy | Michael S. Schadewald 2014 EDITION CPE CoursE! BONUS Earn CPE Credit and stay on top of key Multistate Corporate Tax issues. Go to CCHGroup.com/PrintCPE 2014 EDITION MULTISTATE CORPORATE TAX COURSE John C. Healy | Michael S. Schadewald ii Contributors Authors ........................................................... John C. Healy, MST, CPA Michael S. Schadewald, PhD, CPA Technical Review ....................................................... Sharon Brooks, CPA Production Coordinator ................................................... Gabriel Santana Production ......................................................................... Lynn J. Brown Layout & Design..................................................................Laila Gaidulis This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. © 2013 CCH Incorporated. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 800 344 3734 CCHGroup.com No claim is made to original government works; however, within this Product or Publication, the following are subject to CCH’s copyright: (1) the gathering, compilation...
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... How To Get Forms and Publications . . . . . . . . . . . Common Errors on Forms W-2 . . . . . . . . . . . . . . . General Instructions for Forms W-2 and W-3 . . . . . Special Reporting Situations for Form W-2 . . . . . . . Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Specific Instructions for Form W-2 . . . . . . . . . . . . . Specific Instructions for Form W-3 . . . . . . . . . . . . . General Instructions for Forms W-2c and W-3c . . . . Special Situations for Forms W-2c and W-3c . . . . . Specific Instructions for Form W-2c . . . . . . . . . . . . Specific Instructions for Form W-3c . . . . . . . . . . . . Form W-2 Reference Guide for Box 12 Codes . . . . Form W-2 Box 13 Retirement Plan Checkbox Decision Chart . . . . . . . . . . . . . . . . . . . . . . . . Nonqualified Deferred Compensation Reporting Example Chart . . . . . . . . . . . . . . . . . . . . . . . . Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section references are to the Internal Revenue Code unless otherwise noted. 1 3 4 4 4 6 12 13 20 22 23 24 25 27 Additionally, Forms W-2 and W-2c electronic and paper wage reports for household employers will be returned under the following conditions: The sum of social security wages and social security tips is less than the minimum yearly earnings subject to social security and Medicare tax withholding for a household employee, and The Medicare wages and tips are less than the minimum yearly earnings subject to social...
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