...Recognized Courses in Accounting/Tax Research and Analysis and Accounting/Business Communications September 3, 2014 The Texas State Board of Public Accountancy requires each candidate to complete a minimum of two semester hours in accounting research and analysis or tax research and analysis from a recognized college or university. The semester hours may be obtained through a discrete course or offered through an integrated approach. If the course content is offered through integration, the college or university must advise the Board which course(s) contain the research and analysis content. Courses identified through integration must dedicate 1 semester hour, or quarter hour equivalent, to research and analysis. Courses used to meet this requirement may not be used to meet the requirement for accounting or business communications described below. Course(s) identified by a university to meet the requirements for research and analysis in accounting or taxation should primarily address the identification, organization, and integration of diverse sources of information such as authoritative literature and pronouncements, to reach a conclusion or make a decision; and should analyze accounting and taxation issues by reviewing information, using empirical data and analytical methods, recognizing data in patterned activities, forecasting, and integrating data. CPAs may be asked to conduct research and analysis when providing attest services, professional accounting...
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...Louisiana Tax Reform: Eliminating Corporate and Franchise Taxes The relationship between tax policies and economic growth is a topic that has been frequently debated. For decades, economists have developed studies exploring this relationship and analyzing its effects. These studies concluded that a negative relationship exists between taxes and economic growth. Taxes have a negative impact on economic growth because of how they influence the activities individuals and firms choose to engage in. Businesses and individuals often base their decisions on the overall tax burden, which creates a disincentive to engage in activities taxed at a higher rate. The Tax Foundation evaluates each state’s business tax climate every year in order to indicate which states’ tax systems are the most attractive to business and economic growth. According to the Tax Foundation’s 2013 State Business Tax Climate Index, Louisiana’s tax system is currently ranked 32nd, far below the rankings of progressive southern states such as Florida and Texas. In addition, Louisiana’s tax structure is poorly perceived because of its complexity. Therefore, in order to create a competitive advantage, the Louisiana tax system must be reformed. Several of the states that rank highest in the 2013 State Business Tax Climate Index do not levy a tax on corporations. Furthermore, the average annual growth rates for those states without a corporate income tax exceeded the growth rate of all other states...
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...“California is Not a good Place to do Business,” as well as what effect it has on the people. (And when done reading ask yourself if you would start up a business in California.) Cause: Taxes Its common sense that to improve the health and profitability of a business certain measures must be taken, for instance doing the math on what kind of taxes the business is subject too depending on the state of establishment. According to CalTax.org, “California is the third worst state business tax climate in the nation!” Broken down California has the highest sales tax, gasoline tax, and personal income tax in the nation; as well as the 15th highest property tax and the highest corporate income tax in the West! Along with the high taxes on businesses as a hole, the Business owner’s income is suffering tremendously because of the passage of prop 30! This unfair proposition delegates that for people making 250,000 plus a year must pay an additional 1% percent coming up to 10.3-13.3% for state income tax!...
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...California Unemployment and Taxes California losing business and people because of many factors from high taxes to the high cost of living, but the state government thinks that raising taxes will help keep the states running. According to the Bureau of Labor Statistics, California, has one of the highest unemployment in the country at 9.4%. The nation’s unemployment rate is 7.5% one reason may be high taxes, bad regulations, unions, and the raise in energy costs up by 33%. Companies are moving out of California to places like Texas where the tax rate is lower and have fewer regulations. Some states like South Dakota, Texas, and Wyoming do not have corporate income tax. The big companies are not the only ones hurting. Small businesses are closing down every day. With the new heath care coming in businesses are not hiring because if they have 50 employee or more they will have to pay for their health care so they, either. They will let people go or make them part- time with fewer than 30 hours a week or have to pay a fine for each one. The costs for incorporating companies went up 800. dollars. Businesses are not the only ones moving people, are leaving too. Since the 2000 over 1.6 million people left California, for some of the same reasons, gas prices are one of the highest in the nation, the cost of living is one of the highest in the nation, some of the worst schools in the nation, political correctness, and the economy with poverty levels increasing by 30% since 2007. ...
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...allows a state authority to tax the company. Creating nexus in various states can produce increased administrative costs; however, nexus can also allow for lower tax expenses. California has been ranked in the ten worst states for businesses by the Tax Foundation. Virginia was number six for their corporate tax rank. California states that if tangible personal property is shipped from an inventory in California to a state that is protected from imposing tax (one reason could be protection by the P.L. 8-272) (R&TC § 25135) it should be thrown back to California and taxed by California (Cal. Code Regs., tit. 18 section 25106.5 through 25106.5-11). Creating nexus will result in the avoidance of the throwback to California. Apportionment Factors: The calculations were made based on the states formula provided by the state for the apportionment purposes. Such as Florida Rule 12C-1.015; Illinois, 86 III. Adm. Code 100; Maryland Reg 03.04.03.08; Sec 58.1-414 Virginia code; TTC 171.1055 Texas code; and Rule R865-6F-8 Utah. Strategies: Currently a majority of Cougar’s income is being apportioned to California because Cougar does not have nexus in other states. We can create strategies that will move the apportioned income away from California and into more favorable states including Virginia. We calculated the approximate amount of tax savings following the implementation of each of our suggested strategies using the same apportionable income calculated by the company...
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...increased income because of his or her fear of being placed in a higher tax bracket and therefore paying higher tax payments is the wrong mindset for them and anyone else to have. Having that kind of mindset lets me know that they have been given misleading information on how our tax system works here in the United States, and as I stated earlier, it is essential that we first and foremost understand taxes in order to make important financial decisions. It would be understandable for...
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...right. First, people who wrote the laws about tax meant to incentive people to work harder and have more money. They don’t mean to discourage people from working. Instead, people will have the higher income as they have tax bracket. The system sets tax to be marginal tax rate, which means that one person will only have to pay the higher tax rate on the amount of income that exceed the tax bracket threshold. As an illustration, an employee earns $10,000 each year. The system will charge 10% on the $9,750; and 15% for the $250 that over the tax bracket threshold. In the end, the income with taxes, which my friend received will be higher. The definition of the marginal tax rate is a person will pay a higher tax rate on the amount that exceeds the tax bracket threshold (Video Enlarger Unit 2). It means that the system divides the income into several sections. When the income exceeds the standard of each group, the person will pay a higher tax rate for the amount that surpasses the standard of the section. For instance, average employees earn $20,000 each year. The employees will pay 10% for the first $9,750, and the 15% for the rest amount. The employees can save a bit of money rather than paying the whole 15% for the total income. The reason United States...
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...informs us that income tax started in 1861 with the Civil War, when congress passed a bill required everyone to pay three percent of their income starting at $600 to $10,000 each year (Boortz & Linder, 2005). Since the end of Civil War, the battle began to get rid of the income tax. The truth is that the tax takes money off our pockets. But, I proposed that tax increase on income $ 250,000.00 or more per year because that will decrease taxation on the lower income levels, and increase revenue to the government to fight budget and reduce the national debt. As stated above, income tax was a battle in 1896 and continues to be a battle in 2012. The Sixteenth Amendment of the US Constitution was born to collect revenue from American workers, and that was a fight between Democrats and Republican over income taxation. Due to a 2% tax in 1894, the two major political parties took the fight all the way to the US Supreme Court with a question about the constitutionality of that law. The Supreme Court ruled that the income tax was unconstitutional. As a response to that ruling, Joseph Bailey a democratic senator from Texas presented a bill requesting an income tax. Republicans on their part required an Amendment to the US Constitution in other to support that piece of legislation. Surprisingly, with a vote of 77 to 0 in the Senate, and 318 to 14 in the House the Amendment passed and later on was ratified by the States on February 12, 1913 (Boortz & Linder, 2005). Since the income tax became law...
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...Taxes and Estate Planning John Smith Tax Issues 1. (a) Amount of $300,000 will be treated as self-employment ordinary income. Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. If you use a tax year other than the calendar year, you must use the tax rate and maximum earnings limit in effect at the beginning of your tax year. Even if the tax rate or maximum earnings limit changes during your tax year, continue to use the same rate and limit throughout your tax year. http://www.irs.gov/businesses/small/article/0,,id=98846,00.html 1. (b) Amount of $25,000 was paid to your office as recovery of expenses. If that was previously expensed, it will be considered an income to and will affect your tax rate. If the amount was held in escrow and was not expensed, you may deduct against expenses incurred during the case as business expense. To give an understanding about “deferred expenses” we will define it as assets used to enable cash paid out to counterpart of goods or services to be received in a latter accounting period when fulfilling the promise to pay is acknowledged. Even if a location tax incentive were treated as an amount paid to the taxpayer, it is generally not conditioned on the taxpayer’s actual use of the amount to acquire capital assets, and thus does not become a permanent...
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... | |1 | |Partnerships versus S corporations | |New | | |2 | |Restrictions | |New | | |3 | |S election versus LLC | |Unchanged |1 | |4 | |Use of a qualified Subchapter S subsidiary | |Unchanged |3 | |5 | |Reelection after termination | |Unchanged |4 | |6 | |Passive investment income | |Unchanged |5 | |7 | |Schedule M | |Unchanged |18 | |8 | |AAA bypass election | |Unchanged |7 | |9 | |AAA versus stock basis | |Unchanged |8 | |10...
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...The Fair Tax Act of 2013 is an alternative tax plan introduced Senator Saxby Chambliss (R-Ga) to the Senate Finance Committee on January 23, 2013. Subsequently Senate bill S. 122 and House bill H.R.25 were written. The Congressional findings of the 113th Congress in regards to the Federal income tax, which prompted the introduction of this alternative tax plan, found that the present systems of federal taxation retards economic growth thus reducing the living standards of the United States citizens, impedes the International Competitiveness of Industry in the United States, lowers productivity, as well as a host of other negative findings attributed to our current Federal taxation scheme. Those that supported the introduction of this legislation have the belief that a consumption tax, which is the hallmark of the Fair Tax plan, would have a positive effect on savings and investment thus easing tax compliance resulting in an increase in economic growth and international competitiveness of American industries. Glen R. Hubbard wrote: “A shift from the current tax system to a broad-based consumption tax is best thought of as a two-step process”. His findings first conclude that most elements of consumption tax reform are consistent with moving to a pure income tax with uniform capital taxation. Once there, to get to a consumption tax the key element of reform would be the replacement of depreciation allowances for physical investment with expensing of capital assets. Both of these...
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...Should The United States Have a Flat Tax? The tax code in America is not only very complex, but most people outside of persons who has received specialized training do not understand taxes, forms, deductions, and various other aspects of the tax code. Not only is it hard to understand, but the time it takes to fill out various tax forms, and understanding the forms without the help of a person that knows all of the deductions and loopholes is almost impossible. Some people have taxes that are more complex than others are. Some may have to seek a professional and some may have the luxury of filling out the 1040EZ form, depending on assets, such as owning a business. The whole process of having to file taxes can be very time consuming, stressful, costly, amongst other things. If the United States threw out their current tax code and replaced it with a flat tax for all that would save us time, money, stress, and having to learn a system that does not make sense to those who created it. Everyone including people who works or does not work pays their fair share of instead of just the working class American. Taxes are part of everyday life living in America. There comes the time of year that new years rolls around again after again and getting all of our paper work together including W2s, tax deductions, or 1099s. Gathering all of the paperwork to file taxes is burdensome and creates headaches. For some, it may but not knowing what form to fill out, waiting on all the...
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...Corporate Tax Return Project This assignment requires the completion of a Federal corporate tax return, the 2009 return for the Jackson Corporation. The return involves the first year of operations of Jackson Corporation. You may prepare the tax return using tax software or use the IRS’s “fill-in” forms. The forms may be found by going to www.irs.gov go to - Forms and Publications. Under Forms and Publications there is a link to “previous years” for the 2009 forms. I highly suggest using the tax software in the book- if you don’t have the software see me. The returns must be completed no later than July 20, 2011 at 6pm. For every DAY that the return is turned in earlier than the due date 1 bonus point is awarded up to a maximum of 10 points. For each day the project is late there is a penalty of 10 points. The return is worth a base of 100 points. For any judgment call you must document your position. A very short summary of facts/ law/ conclusion is required. Instructions: Complete the corporate tax return for 2009 for Jackson Corporation. This may include the Schedules A, C, D, E, J, K, L, M-1/ M-2, 4626 and 1120-W. Be careful about what additional forms are needed. This project is an individual assignment. It is NOT a group assignment. I am looking for the following (and will grade accordingly) with this assignment: 1. Correct use of the Forms. 2. Issue identification. 3. Documentation. For any judgment call you...
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...various directors and to outline a position to be taken by the management at the June directors’ meeting. CCI was a regulated general commodities motor carrier whose routes ran the length of the Pacific Coast, from Oregon and California to the industrial Midwest, and from Chicago to several points in Texas. Founded in 1952 by three brothers, the firm experienced little growth until the mid1970s. At that point Mr. Evans joined the firm as president after many years as an executive of a major eastern carrier. Mr. Evans first concentrated his efforts on expanding CCI’s revenues on existing routes through an intensive marketing effort and a renewed emphasis on improving service. In 1982, utilizing the proceeds of CCI’s initial public offering of common stock, Mr. Evans began a program designed to reduce operating costs through a combination of extensive computerization of operations and improvement in terminal facilities. As a result of these changes, CCI became a large and profitable concern, widely respected in the industry for its aggressive management. tC By 1988, Mr. Evans and the directors of the company had come to the conclusion that the key to continued expansion in revenues and income was a policy of selected acquisitions. After a study of potential candidates for acquisition, negotiations began with Midland...
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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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