Free Essay

Irs User Fee

In: Business and Management

Submitted By pikis91
Words 749
Pages 3
IRS User Fee 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you. The Internal Revenue Service (IRS) controls the User Fees Relating to Enrollment and Preparer Tax Identification Numbers. This regulation is found in the Federal Register. A copy of the regulation is included as a separate .PDF document. As a tax preparer this regulation interests me. This will increase my cost of doing business. 2. Describe the proposal/change. The proposed fee for the Personal Tax Identification Number (PTIN) will increase my costs of doing business. 3. Write the public comment which you would submit to this proposal. If the proposed regulation deadline has already passed, write the comment you would have submitted. Explain briefly what you wish to accomplish with your comment. My comment is that as a tax preparer in California, I already pay tax preparer fees to the state regulatory agency, California Tax Education Council. This new fee for using a PTIN, which I have used for over ten years, will increase my cost of doing business. This cost may have to be passed on to customers in what is already a tight economy. I wish to be exempt from this new fee. 4. Provide the “deadline” by which the public comment must be made. (If the date has already passed, please provide when the deadline was). The public comment period expired on 08/23/10. 5a. Once you have sub mitted your comment, what will you be legally entitled to do later in the promulgation process (if you should choose to do so)? I am requesting to be exempt from paying this fee. Under the Administrative Procedure Act, I have the right to “appeal” the fairness of this new fee given the annual fees I am required to pay as a registered tax preparer in the state of California. I will have to determine which theory would be the most applicable to have this fee revoked or be exempted from it. 5b. If the proposal passes, identify and explain the five legal theories you could use in an attempt to have the regulation declared invalid and overturned in court. The five legal theories under which can be used in an attempt to the regulation declared invalid are as follows: Arbitrary and Capricious This theory challenges proposed regulation on the ground that the rule is arbitrary, capricious, an abuse of discretion, or in violation of some other law. It is generally applied to informal rulemaking and requires the agency to show evidence to support the proposed rule. Without such evidence, the rule can be held to arbitrary and capricious (Jennings, 2009).

Substantial Evidence Test This test is applied in the review of formal and hybrid rulemaking on the ground that the regulation is unsupported by substantial evidence (Jennings, 2009). Ultra Vires This theory challenges a regulation on the ground that it goes beyond the authority given to the agency in its enabling act. Ultra vires is a Latin term meaning “beyond its powers” (Jennings, 2009). Sunset Law Under this law Congress creates an agency for a limited period of time during which the agency must establish its benefits and other justification for its continuation (Jennings, 2009). Zero-Based Budgeting Some agencies are controlled by congressional budgets. Some agencies don’t automatically receive a budget amount but rather starts with a zero budget each year and then is required to justify all its need for funds. This type of control gives Congress a say from one year to the next in how the agency is operating (Jennings, 2009). 5c. Which of these challenges would be the best way to challenge the regulation you selected for this assignment if you wanted to have the regulation overturned and why? The best way to challenge the PTIN fee is under the arbitrary and capricious theory. PTIN’s have existed since as far back as I can remember. I first volunteered to prepare tax returns in 1980. At that time I was assigned the PTIN I currently used as a paid tax preparer. Once that number is issued, it doesn’t change. Additionally, as a tax prepared in California, I am subject to annual registration fees per state regulation. The IRS regulation proposed to charge a fee annually for the use of a PTIN which is the required identifier paid tax preparers must use on tax returns.

Reference Jennings, M.M. (2009), Business: Its Legal, Ethical, and Global Environment. Cengage Learning:Mason, OH

Similar Documents

Free Essay

Accounting Methods

...required tax year is a tax year required under the Internal Revenue Code or the Income Tax Regulations. Calendar tax year. A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. You must adopt the calendar tax year if any of the following apply. You do not keep books. You have no annual accounting period. Your present tax year does not qualify as a fiscal year. Your use of the calendar tax year is required under the Internal Revenue Code or the Income Tax Regulations. If you filed your first income tax return using the calendar tax year and you later begin business as a sole proprietor, you must continue to use the calendar tax year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. For more information, see Change in tax year, later. If you adopt the calendar tax year, you must maintain your books and records and report your income and expenses for the period from January 1 through December 31 of each year. Fiscal tax year. A fiscal tax year is 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. If you adopt a fiscal tax year, you must maintain your books and records and report your income and expenses using the same...

Words: 444 - Pages: 2

Free Essay

Tax Issues Relating to Bitcoins

...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. But thereafter, bitcoin is considered as a property, and gain and losses generate from bitcoins are considered as a capital gain or loss.3 However, existing tax laws provide a measure of guidance as to reporting and tax treatment for bitcoin transactions but still there are doubts among the users of bitcoin for proper treatment for tax purposes. Thus, the basic objective of this paper is to...

Words: 2213 - Pages: 9

Free Essay

Home Automation System to Be Selected for Dragonvale”.

...about the EPSO in Samsonite SNT-10 and evaluation. It has two documents; document 2 about HAS been researched to know basic functions of a home automation system. The document 3, a research results from Ir. Peter Howard were studied to evaluate of Samsonite SNT-10. Findings According to document 2, a home automation system comprises wireless remote control. It allows users to enjoy remote access of home electronic devices such as Television, Air conditioner with radio wave signals. In addition it access users can control when out of town by use digital door lock and Image Recording System with Door Access Controller. Last the basic function is Intrusion Detector it can alert users to intruders and if it have fire the HAS will call fire station or security room with infrared signals. Installing HAS would bring a number of benefits. First of all, according to Rick Delgado, Interior Designer at fieshome, the said HAS added safety for both your family and home. For example you can ensure that the oven has been off. Second HAS is instrumental in promoting energy efficiency because according to Rick Delgado it will connecting motion detection and electricity supply to perform energy saving up to 90% of electricity through automation. According to the research results from Ir Peter Howard, Samsonite SNT-10 has a...

Words: 490 - Pages: 2

Premium Essay

Virginia Pollard

...Name removed. GM 520- Week 2 Assignment Assignment: Pick an administrative agency of either the Federal or a State government. Find where the current and proposed regulation changes for that agency are located on the internet. (i.e. the Federal Register or the State Administrative Agency website.) Regulations.gov is a good place to begin your research. Pick one proposed regulation change currently under consideration (if you find one which has already closed out, but interests you, you can use that, instead) and write the following regarding it: 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? Submit a copy of the proposed regulation along with your responses to these five questions. The proposed regulation can be submitted as either a separate Word document (.doc) or Adobe file (.pdf). This means you will submit two attachments to the Week 2 Dropbox: (1) a Word doc with the questions and your answers and (2) a copy of the proposed regulation you used for this assignment. (10 points) 2. Describe the proposal/change. (10 points) 3. Write the public comment which you would submit to this proposal. If the proposed regulation deadline has already passed, write the comment you would have submitted. Explain briefly what you wish to accomplish with your comment. (10 points) 4. Provide the......

Words: 21997 - Pages: 88

Premium Essay

Paper

...to NONPROFIT@LEGALZOOM.COM. Your responses to the questionnaire should be in MS WORD format, and your responses to the budget should be in MS EXCEL format. Please Note: 1. Legalzoom.com only creates your 501(c)(3) application according to your responses to our online questionnaire and follow up questions. We do not submit your application to the IRS and are not affiliated with the IRS. 2. The IRS User Fee is either: (1) $400 if the organization’s estimated receipts average $10,000 or less annually over a four year period, or (2) $850 if the organization’s estimated receipts average more than $10,000 annually over a four year period. 3. For MAC users * Please ensure the name of the file has the PC-appropriate extension (i.e. Document.DOC or Document.XLS) * Save documents as an appropriate file type * Email your responses as an attachment  Please provide 3 titled officers (President, Secretary and Treasurer) for the organization.  Please note that the IRS prefers that at least 2 different people hold the position for president and treasurer.  Also, in some circumstances, the IRS may require that a 501(c)(3) applicant have at least 3 directors, preferably unrelated by blood or marriage.  Please provide the names, addresses, and annual compensations for the three officers and directors.  Please...

Words: 1588 - Pages: 7

Premium Essay

Cga Notes

...CGA-CANADA AUDITING 2 EXAMINATION March 2005 Marks 30 Time: 4 Hours Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 11/2 marks each a. An attitude of “professional scepticism” is necessary if a CGA is to perform an audit engagement with due care. Which of the following best describes how a CGA may display an attitude of “professional scepticism” when performing an audit engagement? 1) 2) 3) 4) By assuming that management is dishonest in the absence of evidence to the contrary By not allowing clients’ staff to assist in the performance of an audit By rejecting all management assertions in the absence of supporting evidence By questioning all material assertions made by management b. Which of the following steps or modifications to an audit program is likely to be the most appropriate if an auditor assesses the risk of management fraud to be relatively high? 1) 2) 3) 4) c. Performing relatively less audit work at interim dates Placing greater reliance on management’s representations Performing less extensive tests of internal controls Assigning less......

Words: 7836 - Pages: 32

Premium Essay

New Technology Implementation

...Introduction The owners of Staff One attempted a few short term adjustments to pull in the reign on the accounting of the business as well as other aspects of the business of staffing. In the past they trusted the office manager to pay the bills, deposit the checks and pay the employees. They expected her to be truthful when questioned about specifics. They expected the information regarding payments and bank account balances shown to them to be accurate. Never in their wildest dreams would they have thought that payments made to the IRS would be deleted, bank statements were falsified or that a second set of QuickBooks would have been downloaded on the computer. Technological Improvement Many long term changes need to be implemented at Staff One but a good start is with a system that schedules employees, houses client and employee information as well as timekeeping information. A scheduling system more inclusive of the system used in the past is what is needed. A system that has the ability to involve clients, employees, managers and the owners of the company. A system that gives both ‘front office’ and ‘back office’ access. The system must also be used to as much of its capacity as possible. It is time for Staff One to learn to rely on outsourcing providers with extensive experience in dealing with Information Systems and Technology. (Pearlson & Saunders 2013) There is a system available that would meet the......

Words: 1029 - Pages: 5

Premium Essay

Pricinples of Information Security, Chapter 5 Review Questions

...1. How can a security framework assist in the design and implementation of a security infrastructure? Designing a working plan for securing the organization s information assets begins by creating or validating an existing security blueprint for the implementation of needed security controls to protect the information assets.  A framework is the outline from which a more detailed blueprint evolves.  The blueprint is the basis for the design, selection, and implementation of all subsequent security policies, education and training programs, and technologies.  The blueprint provides scaleable, upgradeable, and comprehensive security for the coming years.  The blueprint is used to plan the tasks to be accomplished and the order in which to proceed. What is information security governance? Governance is “the set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the enterprise’s resources are used responsibly.”1 Governance describes the entire process of governing, or controlling, the processes used by a group to accomplish some objective. Just like governments, corporations and other organizations have guiding documents—corporate charters or partnership agreements—as well as appointed or elected leaders or officers, and planning and operating procedures. These elements in combination......

Words: 4589 - Pages: 19

Premium Essay

Amazon vs. Borders

...Amazon vs. Barnes and Nobles vs. Borders Allison Foster Instructor Steven Brown BUS 508 – Business Enterprise April 30, 2011 Week Four Originally named “Cadavera”, Amazon was founded by Jeff Bezos in 1994. The purpose of this company was to provide the largest online bookstore ranging from compact discs, books to electronics and apparel. Amazon made it’s own individual mark in 1994 when the owner created a business plan that had no predicted profit for the first four years. According to (wikipedia.com), by the year 2001 Amazon turned a five million dollar profit. The Pros and Cons of the Amazon Business Today Amazon has grown more than just the worlds largest bookstore. Amazon created many different entities such as; Amazon Marketplace, Amazon Fresh Market, Amazon MP3, Amazon Payments, Amazon Prime, Amazon Kindle, and Amapedi. Amazon.com is also eco friendly by promoting the Go Green campaign. This company partners with American Red Cross and raise funds for national and environmental disasters such as Hurricane Katrina, Hati Earthquakes, and 9/11. Although Amazon.com has grown to be successful, the company still endures advantages and disadvantages of diversification of business and specialization. Advantages of Amazon.com are the business to consumer relationships, vast amount of diverse product selections, low cost of merchandise, convenience, personalization, and free delivery . Over the years, Amazon has dominated the e-business and......

Words: 996 - Pages: 4

Premium Essay

Some Payment Gateway Service Description

...Authorize.net About the organization Authorize.Net is a payment gateway service provider allowing merchants to accept credit card and electronic checks payments through their Web site and over an IP (Internet Protocol) connection. Authorize.Net claims a user base of over 305,000 merchants, which would make them the Internet's largest payment gateway service provider. In November 2007 Cybersource purchased Authorize.Net for $565 million. Authorize.Net was originally purchased in 2004 by Lightbridge for $82 Million. Function Credit card processing diagram of authorize.net: Authorization Settlement/funding The major steps in the process are: Step 1: The merchant submits a credit card transaction to the Authorize.Net Payment Gateway on behalf of a customer via secure Web site connection, retail store, MOTO center or wireless device. Step 2: Authorize.Net receives the secure transaction information and passes it via a secure connection to the Merchant Bank's Processor. Step 3: The Merchant Bank's Processor submits the transaction to the Credit Card Network (a system of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions). Step 4: The Credit Card Network routes the transaction to the Customer's Credit Card Issuing Bank. Step 5: The Customer's Credit Card Issuing Bank approves or declines the transaction based on the customer's available funds and passes the transaction results back to the......

Words: 2244 - Pages: 9

Free Essay

Criminal Justice

...application in an expedited manner. Complete and detailed answers will help us to better serve your organization. Please send in your responses via email to NONPROFIT@LEGALZOOM.COM. Your responses to the questionnaire should be in MS WORD format, and your responses to the budget should be in MS EXCEL format. Please Note: 1. Legalzoom.com only prepares your 501(c)(3) application according to your responses to our follow up questions. We do not submit your application to the IRS nor do we have an affiliation with the IRS. 2. The IRS User Fee will vary depending on the average of your total revenues. 3. For MAC users • Please ensure the name of the file has the PC-appropriate extension (i.e. Document.DOC or Document.XLS) • Save documents as an appropriate file type • Email your responses as an attachment Please provide 3 titled officers (President, Secretary and Treasurer) for the organization. Please note that the IRS prefers that at least 2 different people hold the position for president and treasurer. Also, a 501(c)(3) organization is required to have at least three (3) directors, preferably unrelated by blood or marriage. Please provide the names, addresses, and annual compensations for the three officers and directors. Please note that officers may also serve as directors. We have listed the following people as officers/directors in your organization. Please verify the information......

Words: 1956 - Pages: 8

Free Essay

Business Form Assignment

...Form 2553 Election by a Small Business Corporation (Under section 1362 of the Internal Revenue Code) (Rev. December 2007) Department of the Treasury Internal Revenue Service Note. Par t I OMB No. 1545-0146 See Parts II and III on page 3 and the separate instructions. The corporation can fax this form to the IRS (see separate instructions). This election to be an S corporation can be accepted only if all the tests are met under Who May Elect on page 1 of the instructions; all shareholders have signed the consent statement; an officer has signed below; and the exact name and address of the corporation and other required form information are provided. Election Information Name (see instructions) Number, street, and room or suite no. (If a P.O. box, see instructions.) B Date incorporated City or town, state, and ZIP code Type or Print A Employer identification number C State of incorporation D Check the applicable box(es) if the corporation, after applying for the EIN shown in A above, changed its name or E Election is to be effective for tax year beginning (month, day, year) (see instructions) / Caution. A corporation (entity) making the election for its first tax year in existence will usually enter the beginning date of a short tax year that begins on a date other than January 1. F Selected tax year: (1) (2) (3) (4) address / Calendar year Fiscal year ending (month and day) 52-53-week year......

Words: 1655 - Pages: 7

Premium Essay

Virus Attacks

...Chapter 3 Planning for Contingencies Chapter Overview The third chapter of the book will articulate the need for contingency planning and explore the major components of contingency planning. In this chapter, the reader will learn how to create a simple set of contingency plans using business impact analysis and prepare and execute a test of contingency plans. Chapter Objectives When you complete this chapter, you will be able to: • Understand the need for contingency planning • Know the major components of contingency planning • Create a simple set of contingency plans, using business impact analysis • Prepare and execute a test of contingency plans • Understand the unified contingency plan approach Introduction This chapter focuses on planning for the unexpected event, when the use of technology is disrupted and business operations come close to a standstill. “Procedures are required that will permit the organization to continue essential functions if information technology support is interrupted.” On average, over 40% of businesses that don't have a disaster plan go out of business after a major loss. What Is Contingency Planning? The overall planning for unexpected events is called contingency planning (CP). CP is the process by which organizational planners position their organizations to prepare for, detect, react to, and recover from events that threaten the security of information resources and assets, both human......

Words: 3573 - Pages: 15

Free Essay

Cis 359 Midterm Exam Week 5

...preparation A(n) ____ is an investigation and assessment of the impact that various attacks can have on the organization. A(n) ____ is any clearly identified attack on the organization’s information assets that would threaten the assets’ confidentiality, integrity, or availability. ____ is the process of examining, documenting, and assessing the security posture of an organization’s information technology and the risks it faces. A ____ attack seeks to deny legitimate users access to services by either tying up a server’s available resources or causing it to shut down An organization aggregates all local backups to a central repository and then backs up that repository to an online vendor, with a ____ backup strategy. A(n) ____ is often included in legal documents to ensure that a vendor is not liable for actions taken by a client. A ____ is a synonym for a virtualization application. A ____ is an agency that provides physical facilities in the event of a disaster for a fee. A ____ is a contractual...

Words: 1076 - Pages: 5

Premium Essay

Strategic Management Paper on Alibaba.Com

...TABLE OF CONTENTS Executive Summary……………………………………… …………. 3 1. Company Background…………………………………………… 5 2. Research Design and Methodology……………………………… 8 2.1. Research Design………………………………………………………... 8 2.2. Scope and Limitation…………………………………………………... 9 3. Vision and mission…………………………………………….…..11 3.1. Vision statement and evaluation………………………...…………......12 3.2. Vision statement and evaluation……………………………….……....12 4. External Analysis…………………………………………….…...15 4.1. General Environment………………………………………….……....15 4.1.1. Economic Performance and Forecast………………………….....15 4.1.2. Social-cultural, Demographic Trends…………………………….19 4.1.3. Political, Governmental and Legal Aspects……………………...22 4.1.4. Technological Aspects………………………………………..…..24 4.2. Industry and Competitor Analysis……………………………….……25 4.3. The Competitive Profile Matrix (CPM)……………............................43 4.4. External Factor Evaluation (EFE) Matrix……………………………..71 4.5. Strategic Issues based on External Factors……………………………73 5. Company Analysis…………………………………………….....74 5.1. Internal Audit……………………………………………………..….74 5.2. Financial Audit………………………………………………………82 5.3. Production and Operation Audit…………………………………..…90 5.4. R&D Audit………………………………………………………..….96 5.5. 7S framework…………………………………………………….......97 5.6. Internal Factor Evaluation (IFE) Matrix…………………………....107 5.7. Strategic Issues based on Internal Factors……………………….…108 6. Strategy......

Words: 1371 - Pages: 6