...Tax Return Position Paper ACC/455 The techniques in use for creating individual and business tax return transactions follow guidelines and rulings set forth under the tax law. The Internal Revenue Code (IRC) of 1939, which contains Title 26 of the United States Code, is the foundations of the tax law (Anderson, Pope, & Kramer, 2010). Ever since its establishment numerous revisions have been applied. The tax law entails primary and secondary sources, substantial authority. This paper will illustrate these sources, the role of the courts and the Internal Revenue Service in interpreting and applying the sources of tax law. This information will aid in preparing tax returns. The primary source of tax law comprises the Internal Revenue Code; tax court decisions, income tax treaties, and Public laws. Along with the aforementioned one believes that the legislative process is also another primary source of the tax law. This source starts in the House of Representative the first step is the proposal of new tax bill, the bill receives votes determining whether or not to integrate the proposal of a tax bill. A tax law primary source also includes Treasury Regulations; these regulations are rules and regulations in use by the IRS to implement the laws of the Internal Revenue Code. Treasury Regulations can be proposed, temporary, or final. There are also other rulings and regulations from the IRS that support the IRC such as revenue ruling, revenue...
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...Part 1 William as a tax preparer may do a couple different moves with this sort of situation. When preparing a tax return, it is really important for the preparer to evaluate whether or not the authority or authorities are favorable or unfavorable in every situation. In this case, William is aloud to recommend a position on this tax research question for his client and try to avoid penalties if the most substantial authority supports the position. According to Tax Codes, Substantial authority suggests that the probability that the taxpayer’s position is sustained upon audit or litigation is in the 40-plus percent ranges or above. According to IRC SECTION 6694, the preparer who prepares any return or claims a refund with any understatement with knowledge will be penalized with respect to each return or claim. To be careful when dealing with what is substantial authority, the standard is used to determine whether a tax practitioner may take a tax return position without being subject to the penalty. Since William estimates that there is 48 percent chance that the position will be sustained, William can make this return without worrying about a penalty. The tax preparer does not have to disclose this information because it does have the necessary backing from the substantial authority. According to the same section, a taxpayer will not be subject to the underpayment penalty because there is a substantial authority that supports the tax return. Due to the stated facts, William...
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...The article, Tax Consequences of Distributions of C Corporations, by Fortenberry Legal, provides insight into the consequences shareholders and corporations face with the distribution and liquidation of dividends. If the corporation distributes the assets to the shareholders pursuant to liquidation, the corporation is viewed as having sold the assets to the shareholder for fair market value. However, in the event the corporation decides to sell the assets and distributes the remaining cash to the shareholder, it is taxed on the sale and the shareholder is viewed as though the shareholder sold their stock to the corporation for the value of the assets. This is based on the fair market value of the property. Corporations can be organized as C or S corporations. One of the differences between the two is that the C corporations are subject to double taxation, while S corporation are considered a flow-through entity. The income earned by the C corporations is taxed at corporate level and again at the shareholder level when income is received. The distribution of income at the shareholder level can be taxed as a dividend income or as capital gain. A major consequence to shareholders is that "a distribution is made from the corporation's earnings and profits, it is taxed to the shareholder as a dividend." In some cases shareholders may feel that the distribution be treated as a dividend. By doing this it allows the corporation to take advantage of Code § 243. This is special...
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...Tax Reform Position Paper Taxes are necessary because they fund the services provided by government. Americans will pay trillions in taxes. Beyond funding government, the federal tax system has profound effects on the economy as a whole and on individual taxpayers, both for today and tomorrow. Taxes change people’s behavior and influence the economy by altering incentives to work, consume, save and invest. This affects economic growth and future income, therefore, future government revenues. In this paper I will highlight the pros and cons of flat tax, national sales tax, and the current tax system. Flat Tax Simplicity is considered a significant benefit of the flat tax system. One tax rate makes for easy calculation by the Internal Revenue Service (IRS) and straight forward payments from taxpayers. Because the flat tax taxes only one income, it is easier to understand and to report. The flat tax remains a popular idea in part because it eliminates double taxation. It eliminates the death tax, capital gains tax and taxation of savings and dividends. Fairness remains a popular feature of the flat tax. A taxpayer who makes $5000 pays the same tax rate as someone who earns $500,000. The taxpayer who makes more pays more taxes simply because their income is greater. It does not discriminate based on income; everyone pays the same percent. Some of the cons of the flat tax are that the system penalizes the low-income portion of the population. For example, if the...
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...Tax Return Position Paper When it comes to taxes and the Internal Revenue Service (IRS), it can be difficult to take any particular position on a tax return. There are so many different things that must be weighed out before making such a difficult decision. In order to take a firm position on a tax return one would first need to know the primary sources of tax law as well as the secondary sources of tax law. Secondly, there is also the need to know what substantial authority is and to have a clear and decisive understanding of the true meaning of it. Lastly, one needs to understand the role of the Internal Revenue Service and the courts in the aspect of applying tax law. Primary Sources There are multiple sources of tax law that are used. The largest primary source currently being used is the Internal Revenue Code. The Internal Revenue Code is actually part of the United States Code. Other primary sources of tax law consist of treasury regulations and federal regulations. Previous decisions made by the different courts systems (United States Tax Court, federal circuit courts, district courts, supreme court and court of federal claims) are widely used as primary sources of tax law. The previous rulings from the different court systems is a good sources because the information is more detailed and serves as a guideline for different taxpayer situations. The courts and Internal Revenue Code generally have the highest authority. However, there are also other sources...
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...d. Regarding Uncertain Tax Benefits: i. How does the company classify its income taxes payable related to uncertain tax benefits (FIN 48) on the balance sheet? The Company’s income taxes payable have been reduced by the tax benefits from employee stock plan awards. For stock options, the Company receives an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price, tax effected. For RSUs, the Company receives an income tax benefit upon the award’s vesting equal to the tax effect of the underlying stock’s fair market value. The Company had net excess tax benefits from equity awards of $1.1 billion, $742 million and $246 million in 2011, 2010 and 2009, respectively, which were reflected as increases to common stock. Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the Consolidated...
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...under privileged church status. See the 1978 EOATRI textbook topic on Churches, pp. 1-29. Public interest in religious groups (exempt or not) is very keen. There is an increase in the number of "religious" tax-avoidance schemes, e.g., mail order ministries, family churches, vows of poverty, etc. Congress has been investigating Reverend Moon's Unification Church and related organizations for illegal activities. The recent mass suicide at the People's Temple in Jonestown, Guyana, drew international comment and much Congressional interest. And, the press is filled with reports of "brainwashed" disciples and parents "re-kidnapping" their children. The 1978 EOATRI textbook topic on Churches is a good summary of the major problems we encounter in administering the IRC 501(c)(3) "religious purposes" exemption. This discussion is meant to supplement that topic. We intend only to highlight new developments and the increased interest in the area. 1. Inurement and Tax Avoidance Schemes IRC 501(c)(3) clearly precludes exemption for all organizations (churches and religious organizations too) whose net earnings inure to the benefit of a private shareholder or individual. The Founding Church of Scientology v. U.S., 412 F.2d 1197 (Ct. Cl. 1969). Equally as clear is the Federal income tax principle that a taxpayer's assignment or...
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...disclosed on her tax return. Is that correct? If not, how much should she declare her income in tax return in regards to the tips she received? Answer: Usually, Australian employment laws do not treat tips from customers as part of your employee’s salary or wages. However, any tips they obtain and retain, either straight from customers or distributed by employers, must be stated as a taxable income if they need to file an income tax return. If employees pay their tips to employer’s, they only need to report as income the amount of tips they keep and that employers distribute tips back to their employees .However under income tax law Rebecca needs to report their tips as income from working under the “Allowances, earnings, tips, director's fees, etc.”, on their income tax return. There may be different types of expenditures of income from working as waitress for Rebeca in a busy restaurant. These may include: * Allowances payments from which tax was not withheld, including salary, wages, commissions, bonuses, income earned from part-time and casual jobs, and income from income protection, sickness and accident insurance policies. * tips, gratuities and payments for your services. * Consultation fees and honoraria (payments for voluntary services). Rebeca will need her payment summaries or comparable statements to be revealed (and details of the payments that you received if they are not shown on a payment summary or comparable statement). If Tax authorities have...
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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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...Subject: Tax Issues of Lee’s Decision on Purchasing a Vacation Condo Facts: Mr. and Mrs. Lee are considering investing in a $500,000 condominium in Miami Beach, Florida, as their vacation home. Their marginal tax bracket is 33% and they also pay Maryland state and country income taxes at a rate of 7%. They are required to put down a 20% deposit and will get a mortgage for the balance for ten years’ interest at 5% annually. They can rent the condominium back to the Developer for two years for $4,000 a month and still use the unit for up to 30 days a year. Besides, indirect expenses are estimated including property taxes at $10,000 a year, a maintenance fee at $6,000 a year, insurance at $200 a month and utilities at $300 a month. The salesman expected the property would enjoy a 6% appreciation rate each year. Issue A: Can this condominium provide the Lees with desirable personal use characteristics and provide attractive tax write-offs? Authorities: §212, §280A (d), §280A (e), §280A (f) Conclusion: The condo can provide Lees with a beautiful fixed vacation destination for up to 30 days a year with attractive tax write-offs of all expenses allocated to the rental use days of the condo as for AGI deduction under nonresidence purpose. Analysis: The nontax benefits of purchasing the vacation condo include a fixed vacation destination and the opportunity of generating rental income. Correspondingly, in § 212, there shall be allowed as a deduction all the ordinary and necessary...
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...companies (MNCs) you are subjected to a tax. Certain offshore jurisdiction around the globe offers lower tax rates and other tax features. It is designed to attract domestic and foreign investors seeking an opportunity to game the tax code and maximize profits. The Canada Revenue Agency has defined Tax Havens as jurisdictions with no tax, or very low rates of taxation; strict bank secrecy provisions; a lack of transparency in the operation of its tax system, and a lack of effective exchange of information with other countries. As shown in (Desai, Foley, and Hines Jr 2004), examples of such Tax Havens include Ireland, Luxembourg, Singapore, and various Caribbean island nations in America. According to Tax Justice Networks 2012 report, approximately USD $21 trillion to $32 trillion is sheltered from taxes in unreported Tax Havens worldwide. Canada has suffered tax revenue loss of $7.8 Billion annually as a result of Tax Havens (Canadians for Tax Fairness [CTF], 2013). In 2007, US president Barack Obama and his Senators C.Laevin and N.Coleman noted “Offshore Tax Havens have declared economic war on honest U.S. taxpayers”. Apple is among 82 of the top 100 publicly traded U.S. companies that operate subsidiaries in Tax Haven jurisdiction as of 2012 (U.S.PIRG, 2012). Every dollar in taxes that MNCs and top tier wealthy individuals avoid by using Tax Havens must be balanced by those honest taxpayers paying higher taxes. Every contribution in tax is reflected in our infrastructure...
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...Federal Income Tax Final Paper http://homeworktimes.com/downloads/acc-401-federal-income-tax-final-paper/ For More Tutorial Visit: http://homeworktimes.com/ For any Information Email Us: : onlineeducationalservice@gmail.com ACC 401 Federal Income Tax Final Paper http://homeworktimes.com/downloads/acc-401-federal-income-tax-final-paper/ For More Tutorial Visit: http://homeworktimes.com/ For any Information Email Us: : onlineeducationalservice@gmail.com ACC 401 Federal Income Tax Final Paper http://homeworktimes.com/downloads/acc-401-federal-income-tax-final-paper/ For More Tutorial Visit: http://homeworktimes.com/ For any Information Email Us: : onlineeducationalservice@gmail.com ACC 401 Federal Income Tax Final Paper http://homeworktimes.com/downloads/acc-401-federal-income-tax-final-paper/ For More Tutorial Visit: http://homeworktimes.com/ For any Information Email Us: : onlineeducationalservice@gmail.com ACC 401 Federal Income Tax Final Paper http://homeworktimes.com/downloads/acc-401-federal-income-tax-final-paper/ For More Tutorial Visit: http://homeworktimes.com/ For any Information Email Us: : onlineeducationalservice@gmail.com ACC 401 Federal Income Tax Final Paper http://homeworktimes.com/downloads/acc-401-federal-income-tax-final-paper/ For More Tutorial Visit: http://homeworktimes.com/ For any Information Email Us: : onlineeducationalservice@gmail.com ACC 401 Federal Income Tax Final Paper http://homeworktimes...
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...27MAR201319523653 ORCHIDS PAPER PRODUCTS COMPANY 2013 ANNUAL REPORT To Stockholders Dear Stockholders, In 2013, Orchids Paper Products Company experienced record converted product net sales and total net sales levels for the second consecutive year. We continued to broaden our product offerings and experienced additional penetration into the mid/premium tier product markets. Net sales of converted products exceeded $100 million for the first time in the Company’s history. During 2013, we focused on continuing to increase sales of converted product to fully consume our parent roll capacity. Our efforts centered on new product development in both paper making and converting and combining those efforts with an effective sales and marketing plan. As a result, we continued to expand our converted product offerings into the mid/premium tier market, creating new sales opportunities which resulted in shipments of 8.2 million cases, or approximately 53,000 tons, an increase of 16.2% over case shipments in 2012. More specifically, during 2013, our net sales increased 15.4% to $116.4 million compared to $100.8 million in 2012. This included a 21.1% increase in converted product sales. Our sales of mid-tier and premium tier products comprised 37.9% of our unit net sales in 2013, compared to 15.0% in 2012 and 6.8% in 2011. We also focused considerable efforts on controlling production costs while improving quality attributes to supplement the high quality production capabilities of...
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...the strategic location also would exist benefits regarding transdisciplinary work between different plants. Benefits that result in a consistent process integration, cross information, facilitating learning, technological exchange and decreased bureaucracies, all factors which contribute to the improvement of production processes and efficiency. In relation to economies of scope, this new project would achieve diversify activities pulping, taking advantage of new technologies in processing focused on expanding other industries. And finally, this new plant, will allow to Arauco, get an horizontal growth that would position him as one of the largest producers in Latin America with Aracruz. Forward integration It means to move into paper manufacturing rather than a horizontal growth, competing...
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