...The “tax gap” is a term that refers to the difference between how much of tax is collected compared to the amount that should be collected. It also refers to those taxes that are not paid by: nonfilers, tax cheats, delinquents, and those who interpret the tax laws differently than stated, and those who apply tax law wrong whether on purpose or by accident. The most recent amount of know tax gap, is $385 billion which is the difference between the underpayment of close to $450 billion and collection from audits and other collections, of $65 billion. The IRS has stated in the past that is their belief that only 85% of the population report the correct amount of tax. Since a person forms their own return it is possible that a number could be forgotten by accident or on purpose to alter the amount of tax/refund result. There are three main sources that...
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...Tax Issues Relating to Bitcoins Wipula Kurudugahamada Research in Taxation Professor Richard L. Russell April 9, 2015 Tax issues relating to Bitcoins 1. Introduction What are the flat currencies? The currencies created by a government. Then there is a central regulatory agency responsible for the issue. The accepted characteristics of present day use money are included a store of value, a unit of account, and a medium of exchange. However, the supplies of currencies are governed and authorized by the central bank on behalf of the government. However, after the mortgage crisis in 2008 the money supply increased sharply therefore the confidence in the government issued currency declined among the people. At this point, the paper by Satoshi Nakamoto was published online describing the “Bitcoin” for the first time. In the opinion of Nakamoto, the major problem with conventional currency today and discussed the easiness of bitcoins.1 In a nutshell, Bitcoin is an electronic cash system started in 2009. Therefore, it is new to the market. Still most of the countries have been studying the system and how it operates. But it is not fully accepted in a lot of countries as a legal tender. There are more than hundred thousand vendors in the market today who accepts bitcoins as a currency. There are more than sixty thousand in the USA.2 However, until March, 2014 IRS notice 2014-21 came into operation; the bitcoin was treated as currency in the USA for tax purposes...
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...In the case, the married couple Ted and Ruth are planning to sell their principal residence in Richmond and purchase a new one after that. Meanwhile, they and their families use their vacation home in Maryland on a frequent basis. The main tax issues we need to examine here are (1) How much gain should Ted and Ruth realize and recognize on sale of their principle residence? What is the nature of such gain? Should they include the gain in their gross income? (2) Are Ted and Ruth allowed to deduct expenses for their vacation home on the joint tax return? According to Internal Revenue Code section 121 (a) & (b), individuals can exclude up to $250,000 gain from gross income on sale of a main home (or $500,000 for joint returns) as long as they have owned the home and used the home for a minimum of two years. The two years are aggregating which means your living period in the house does not need to be consecutive. However, the $500,000 limitation does not apply to the married couple in our case since Ted fails the use requirements mentioned above (section 121 (b) (2) (A) (ii)). Since Ted moved into the Richmond home on December 13 of 2010 and that the sale date is September 1 of 2012, his stay in the house is less than two years. The amount they can exclude should be the sum of each spouse’s limitation amount determined on a separate basis as if they had not been married (section 121 (b) (2) (B)). Since Ted would not have owned the house if he had not married to Ruth, the amount of...
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...Case study of “Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues” Judgment Framework and Professional Judgment Discuss the importance of “judgment framing.” “Judgment framing” occurs early in the judgment process. The definition of framing follows: Frames are mental structures that we use, usually subconsciously, to simplify, organize, and guide our understanding of a situation. They shape our perspectives and determine the information that we will see as relevant or irrelevant, important or unimportant. Frames are a necessary aspect of judgment, but it is important to realize that our judgment frames provide only one particular perspective. The importance is that judgment framing question management’s perspective appropriately by viewing other frames and it is a foundation to professional skepticism. How do perceptual biases relate to judgment biases? Our eyes and related perceptual skills ordinarily are quite good at perceiving and helping us to accurately judge shape similarity. However, optical illusions can predictably and systematically fool our eyes. The judgment biases are similar to the perceptual ones, like there are times when our intuitive judgment falls prey to systematic traps and biases. What are the five steps in the judgment process? a. Clarify Issues & Objectives: To get at issues, ask “what is the problem to be solved?” To get at objectives ask “what is wanted or needed?” Ask “what” and “why” questions. b. Consider...
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...RULE 101. SCOPE; DEFINITIONS (a) Scope. These rules apply to proceedings in United States courts. The specific courts and proceedings to which the rules apply, along with exceptions, are set out in Rule 1101. (b) Definitions. In these rules: (1) “civil case” means a civil action or proceeding; (2) “criminal case” includes a criminal proceeding; (3) “public office” includes a public agency; (4) “record” includes a memorandum, report, or data compilation; (5) a “rule prescribed by the Supreme Court” means a rule adopted by the Supreme Court under statutory authority; and (6) a reference to any kind of written material or any other medium includes electronically stored information. RULE 102. PURPOSE These rules should be construed so as to administer every proceeding fairly, eliminate unjustifiable expense and delay, and promote the development of evidence law, to the end of ascertaining the truth and securing a just determination. RULE 103. RULINGS ON EVIDENCE (a) Preserving a Claim of Error. A party may claim error in a ruling to admit or exclude evidence only if the error affects a substantial right of the party and: (1) if the ruling admits evidence, a party, on the record: (A) timely objects or moves to strike; and (B) states the specific ground, unless it was apparent from the context; or (2) if the ruling excludes evidence, a party informs the court of its substance by an offer of proof, unless the substance was apparent from the context. (b) Not Needing...
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...an Expert Witness D. L A R R Y C R U M B L E Y A N D K E I T H A . R U S S E L L eing able to deal with the unexpected is a key part of performing well as an expert witness and a challenge that some CPAs find exhilarating. Increasingly, forensic accountants are being called as expert witnesses to help sort out the labyrinthine financial aspects of litigation involving complex issues and large sums of money. In open court these advisers submit to scrutiny from a judge, the jury, attorneys, court personnel and trial spectators. CPAs who keep their cool and convey concise, cogent information—whether in depositions or under an opposing attorney's attempts to discredit their testimonies—can have a pivotal impact on a conflict's resolution as well as the satisfaction of helping a client win (see "Basic Legal Concepts," page 33). Here are some suggestions on how to increase your positive impact on behalf of your client. PREPAREDNESS IS THE KEY Juries, judges and arbitration panels charged with resolving disputes with tlnanciai aspects often know little about financial statement analyses, audits, tax, budgeting or malpractice calculation ot lost profits and damages. To help triers of fact understand the impact of different types of financial transactions or attach a measurable value to a plaintiffs injury CPAs often are called on to serve as expert witnesses. If you want to develop a niche in such October 211(14 JOURNAL of ACCOUNTANCY Come to Order Most people didn't realize...
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...Global Environmental Change 17 (2007) 445–459 Barriers perceived to engaging with climate change among the UK public and their policy implications Irene Lorenzonia,b,������, Sophie Nicholson-Coleb, Lorraine Whitmarshb a School of Environmental Sciences, University of East Anglia, Norwich, NR4 7TJ, UK b Tyndall Centre for Climate Change Research, School of Environmental Sciences, University of East Anglia, Norwich, NR4 7TJ, UK Received 25 August 2006; received in revised form 12 January 2007; accepted 17 January 2007 Abstract This paper reports on the barriers that members of the UK public perceive to engaging with climate change. It draws upon three mixed-method studies, with an emphasis on the qualitative data which offer an in-depth insight into how people make sense of climate change. The paper defines engagement as an individual’s state, comprising three elements: cognitive, affective and behavioural. A number of common barriers emerge from the three studies, which operate broadly at ‘individual’ and ‘social’ levels. These major constraints to individual engagement with climate change have implications for achieving significant reductions in greenhouse gases in the UK. We argue that targeted and tailored information provision should be supported by wider structural change to enable citizens and communities to reduce their carbon dependency. Policy implications for effective engagement are discussed. r 2007 Elsevier Ltd. All rights reserved. Keywords: Climate...
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...Collapse- book is about a history topic about how societies choose to fail or survive. The main characters are historical people and unknown kings of Mayan cities or Easter Island villages. Jared Diamond tells the story of the Viking explorer Erik the Red, who discovered Greeland and Vinland (Terranova, in Canada). Another character is captain Olafsson, a norse sailor who wrote the last news about Greenland in 1410. Another main character is Christopher Columbus, who arrived at Hispaniola in 1492, but now this island is two countries, the Dominican Republic and the Haiti. Diamond studied the politics of two presidents. the dominican Rafael Trujillo, who protected the enviroment and the dictator François, Papa Doc, Duvalier, who decided on politics of deforestatation of his country, Haiti. The author considered the bad politics of another main character, king George II, who was interested in sending merinosheeps from Spain to Australia, an idea which was succesful from 1820 to 1950 but then the farmers understood their lands lost fertility. Another main character is Tokuwaga Jeayasu, a shogun of Japan in 1600, who prohibited Christianity in 1600 and protected his country againt deforestation. The book takes us to a lot of places around the globe: Mayan cities, Rwanda, Viking colonies of Vinland or Greenland, Haiti and Dominican Republic, Easter Island and Polynesian colonies in Pacific, and the Chaco villages in New Mexico (United States). The time period was from 800 AC, when...
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...“Problems to solve by lucy kellaway & the Financial Times” Do I have to invite co-workers to my wedding? This is a very interesting question. When you see it if no one asks you to think about it one is likely to think “what a stupid question, that has an obvious answer”, but you would be wrong. A person that works in a company will most likely spend more time there then at home. It shouldn't be to much of a predicament if the person holding the wedding gets is friends with everyone at work, which might happen if you work for a small company, and the work space consists of a small work force. What if you don’t like some one in your work place? or even if one feels that the time they spend with their colleagues is more then enough? It really depends on the person who is about to take the ultimate step in a relationship. One can invite everyone and just have to deal with those who are not to their liking, which will prevent any future resentments. One can invite just the ones they get along with, this with the notion that others will find out about the happening, and might result in future quarrels in the future. A politically correct approach can be taken by not inviting their co-workers to the wedding using the expenses as an excuse. As a person that has never worked in an office environment, and hasn’t even pondered on the idea of getting engaged, it is hard to considered the approach that I would take. Based on school environment birthdays, I believe if I was eccomicly...
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...The issues that our company has to address is setting up a for profit business in a place where there are the many disasters and calamities that are affecting the area. Another issue is that there are environmental elements that cause damage to the island which can in turn jeopardize the economy due to the fact that the majority of the resources that are used to support the country come from agricultural means. Along with the many instances of environmental threats, there are also external and internal disasters that have affected the island. Upon arrival I am greeted with the aftermath of a set of disasters that has recently ailed Kava. The objective of the company is to set up business here and in doing so give some of what has been taken away back to the country. This is easily said than done. There are a lot of things to consider in solving the problem. The main concentration at this point will be organizational processes, human resources, and ethics. The organizational processes of the company are to flow together to do the best thing for the people involved in the company while also making profit. In order for us to be successful, our organizational processes need to aim for the most beneficial way to introduce and do business here in Kava. Having the company here will help to bring in a new additive to the economy. There will be new area of work opened to the people here The decision-maker weights the previously identified criteria in order The various key...
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...going to be put under the microscope, divulging into the many aspects and rules of an expert witness and the opinion they give. A In the Criminal Procedure Rule, it terms an expert witness a person who is required to give expert evidence for the purpose of criminal proceedings, including evidence that is to determine the fitness to plead or for the purpose of sentencing. For example one may call on a police officer that is experience in collision investigations may offer his expert opinion on how the accident transpired. There are also times when an expert witness is not required, where a judge or jury can form his or her own views and inferences without the help of an expert. Expert witnesses can be called to testify on a variety of issues, such as DNA analyses, engineering, architecture, handwriting, fingerprints, psychologists, pathologist, etc. “When knowledge of a technical subject matter might be helpful to a trier of fact, a person having special training or experience in that technical field, is permitted to state his or her opinion concerning those technical matters even though he or she was not present at the event.” Expert witness will give an opinion of the facts that are presented in the relevant court case. It is known as...
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...CREATING SHARED VALUE BUSINESS POLICY ASSIGNMENT - 2 Executive Summary Creating Shared Value - Reinventing Capitalism By Michael Porter & Mark Kramer According to Michael Porter and Mark Kramer, "Creating Shared Value" can be defined as Policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. The concept of shared value which focuses on the connections between societal and economic progress has the power to unleash the next wave of global growth. Shared value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. The purpose of the corporation must be redefined as creating shared value, not just profit per se. This will drive the next wave of innovation and productivity growth in the global economy. Moving Beyond Trade‐Offs Solving social problems has been ceded to governments and to NGOs. Corporate responsibilities programs a reaction to external pressure have emerged largely to improve firms’ reputations and are treated as a necessary expense. Fair trade aims to increase the proportion of revenue that goes to poor farmers by paying them higher prices for the same crops. Though this may be a noble sentiment, fair trade is mostly about redistribution rather than expanding the overall amount of value created. The Roots of Shared Value A business needs a successful community...
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...Social Problems in Societies Caroline Muthoni Kagane Kenyatta University Social Problems in Societies. A social problem is an issue that has an impact on members of society. It either affects members directly or indirectly. These are problems that a community agrees to be acceptable or unacceptable. Things like abortion, poverty, drug abuse and domestic violence can be listed as examples of social problems (Linda, David , & Caroline , 2012). Drug abuse is excessive, irrational and self-damaging use of a substance resulting to continuous craving, psychological damage, illusion or death. Drug abuse is a societal problem mainly affecting the youth both in school and out. Most youths engage in drug abuse out of peer pressure from friends who recruit each other into cults. The use of drugs in societies is high where the level of literacy is low. Nana (2006) notes that learned youths who are struggling to find good job after they are through with their education, get frustrated and engage themselves in use of drugs. This is one of the major problems in many societies where people cannot find job that match their level of education hence find comfort in use of drugs. Easy availability of drugs in today’s society makes it effortless for many people to get access to drug resulting to even small children using drugs. There are so many outlets where people can get drugs at a cheaper price hence so many people engaging themselves in drug abuse (Bosco & Moses...
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...A social issue (also called a social problem or a social ill) is an issue that relates to society's perception of people's personal lives. Different societies have different perceptions and what may be "normal" behaviour in one society may be a significant social issue in another society. Social issues are distinguished from economic issues. Some issues have both social and economic aspects, such asimmigration. There are also issues that don't fall into either category, such as wars. Thomas Paine, in Rights of Man and Common Sense, addresses man's duty to "allow the same rights to others as we allow ourselves". The failure to do so causes the birth of a social issue. Personal issues versus social issues[edit] Personal issues are those that individuals deal with themselves and within a small range of their peers and relationships.[1] On the other hand, social issues threaten values cherished by widespread society.[1] For example, the unemployment rate of 7.8 percent[2] in the U.S. as of October 2012 is a social issue. The line between a personal issue and a public issue may be subjective, however, when a large enough sector of society is affected by an issue, it becomes a social issue. Although one person fired is not a social issue, the repercussions of 13 million people being fired is likely to generate social issues. Caste system[edit] Caste system in India resulted in most oppressed Untouchables on earth for the past 3000 years . UK recently banned caste system[1] and US is...
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...the ordinary lay person enabling him/her to give testimony regarding an issue that requires expertise to understand. Experts are allowed to give opinion testimony which a non-expert witness may be prohibited from testifying to. 2. Both sides had to bring in experts in regards to the chemicals that the wells were contaminated with. Then they had to bring in experts in ground water movement, they had to prove chemicals were dumped, and had to prove the chemicals made the people sick. Proving of causation was the reason why so many experts were called on. Every aspect of the evidence had to be proven to be as solid as possible to be allowed in court. 3. Hydrogeologist, Geologist, Engineering Geologist, Soil scientists, Geochemist 4. The first issue is money. Experts are paid for their time and even though it creates a substantial incentive for the expert to advocate a party's position that is not supported by available research and data. This problem is particularly acute with the professional witness, who makes her living testifying as an expert. A professional witness is highly motivated out of self interest to develop relationships with lawyers because those relationships are the expert's lifeblood. The more effective the expert is in advancing the lawyer's case, the greater the likelihood the expert will be retained again. The Safeguards of the Adversary System is the second issue. The jury is not competent to resolve inconsistencies in expert testimony...
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