...Impact of Internal control system over customer service in financial aspects Definition of Internal Control? Internal control or an internal control system is the integration of the activities, plans, attitudes, policies, and efforts of the people of an organization working together to provide reasonable assurance that the organization will achieve its objectives and mission. Four Purposes of Internal Control 1. To promote orderly, economical, efficient and effective operations and to produce quality products and services consistent with the organization's mission; 2. To safeguard resources against loss due to waste, abuse, mismanagement, errors and fraud; 3. To ensure adherence to laws, regulations, contracts and management directives; and 4. To develop and maintain reliable financial and management data, and to accurately present that data in timely report FOUR COMPONENTS OF INTERNAL CONTROL 1. CONTROL ENVIRONMENT Control environment is the attitude toward internal control and control consciousness established and maintained by the management and the employees of an organization. It is a product of management's philosophy, style and supportive attitude, as well as the competence, ethical values, integrity, and morale of the organization's people. The organization structure and accountability relationships are key factors in the control environment. 2. COMMUNICATION AND INTERNAL CONTROL Management should ensure that...
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...Nonprofit organizations are tax exempt businesses that have as a main purpose provide free or low cost services to the population. The Internal Revenue Service (IRS) provide the tax exempt status to Charities organizations. The fiscal code that the IRS use to protect these organizations is the 501(c) (3). Under this code, these type of business are not allow to obtain profit through their services or activities they deliver. Also, if the case is that nonprofit obtain revenue, they are obliged to spend that extra money in the organization through incrementing services or activities. Under this 501 (c) (3) code, this protection is legally, because these business must obtain their financial resources from public and private donations, grants, and contracts....
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...Tax season is just around the corner, and no other name incites more fear in people’s hearts than that of the Internal Revenue Service. America has long been funded by its citizen’s hard earned tax dollars. It has been the main source of funding for several wars and government-funded programs. Taxes affect every person, business, and property. This environment of constant change is a challenge for most accountants or anyone for that matter. This paper seeks to explore the history of the Federal Income Tax System, the Internal Revenue Code, the Internal Revenue Service, and guidelines and improvement of the tax system. History of Taxation in the United States The history of taxation in the United States commenced when the British, French and Spanish Empires ruled the individual colonies established in the US. This was back in the 1790’s after World War I. After their independence from Europe, the taxation system continued by collection of poll taxes, tariffs, and excise taxes. There were various acts passed by parliament which imposed taxation of various items such as lead, paper, paint, glass, stamps, sugar, and tea as a means of tax collection. From these come the Sugar Act, the Stamp Act, and the Townshend Revenue Act. The Boston Tea Party was the insurgency against the British colonists by the American colonists to not pay the tea tax levied upon them. Federal Government Income Tax History The taxation system in the United States is governed by different...
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...CIS/207 April 30, 2012 Vickie Schubert-Martin Hardware/Software The hardware and software needed to support personal, workgroup, and enterprise computing within the Internal Revenue Service is rather complex. The enterprise structure of the Internal Revenue Service (IRS) consists of 10 major service centers and 24 primary district offices. In addition to the primary district offices. There are additional district offices that take care of customers face-to-face. The 10 service centers do not allow taxpayers to visit or to enter the property, therefore, security issues with the computer network systems is not as high as it is with the district offices. The primary hardware behind the network is what we call a mainframe. The mainframe is located in the Martinsburg Computing Center with a backup location in Detroit. Additional tape storage areas is located in Washington, DC within the Treasury Department. Each service center has a direct connection to the mainframes through an intranet. The intranet is tied to all IRS offices nationwide. The IT department which supports the network is primarily based in Martinsburg and Detroit and have support staff within each service center. All servers and primary databases are maintained in these two locations. The 10 service centers have several operations within each service center ranging from collections to data entry. The data entry area receives the tax returns, codes and edit them for input into the computer system so that the data...
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...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 (http: www.nytimes.com/reuters/2011/08/19/business). A new law signed by President Barak Obama in March of 2010, the Foreign Account Tax Compliance Act (FATCA), which goes into effect January 1, 2014, is meant to expose billions of dollars in offshore tax evasion. FATCA is an instrument...
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...INTERNAL REVENUE SERVICE 10 Data Security Who has access to your tax data? Nikki Davis Abstract In this tax season, when billions of dollars and tons of personal information is relayed to and from the government, it's more than disconcerting to hear that the Internal Revenue Service is still struggling to keep private information secure. The purpose of my study is to improve the safeguard of taxpayers’ data at the Internal Revenue Service. Due to the fact that firewalls are in place and transaction monitoring is also in place; yet, taxpayers’ data is still being exploited. It seems that the problem lies in the character of some of the employees. It is not such much that the background checks are not in depth, they are not expeditious. It may take up to 3 years to perform a full background check. What is Data Security Data is the raw form of information stored as columns and rows in our databases, network servers and personal computers. This may be a wide range of information from personal files and intellectual property to market analytics and details intended to be top secret. Data could be anything of interest that can be read or otherwise interpreted in human form. Data security is the means of ensuring that data is kept safe from corruption and that access to it is suitably controlled. Thus data security helps to ensure privacy. It also helps in protecting personal data. In simple terms, data security is the practice of keeping data protected from corruption...
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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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...ACC 575 WK 3 ASSIGNMENT 1 To purchase this visit here: http://www.activitymode.com/product/acc-575-wk-3-assignment-1/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 575 WK 3 ASSIGNMENT 1 ACC 575 WK 3 Assignment 1 - Internal Revenue Service Compliance Requirements for CPAs Go to the IRS Website and review circular 230 titled “Regulations Governing Practice before the Internal Revenue Service,” located at http://www.irs.gov/pub/irs-pdf/pcir230.pdf. Write a three to four (3-4) page paper in which you: 1. Create an argument supporting the following premise: The requirements of Circular 230, as well as the consequences related to violations of the compliance rules for individual or corporate taxes, have reduced tax fraud activity. 2. Suggest what you believe to be the most flagrant ways in which tax preparers violate IRS Circular 230 rules, and provide a rationale for your response. Propose the most likely IRS penalty for the violation identified, and recommend the most important alternative action(s) that the IRS could take to prevent this type of violation in the future. 3. Evaluate the current Circular 230 requirements to practice before IRS, and recommend at least two (2) new requirements for tax practitioners that would improve overall ethical behavior and compliance and avoid IRS penalties. Support your recommendation with examples. 1. Activity mode aims to provide quality study notes and tutorials to the students of ACC 575 WK 3 Assignment 1 in order...
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...president. The secondary sources suggest a deconstruction, a rephrasing of the primary law. The secondary sources are used to boost determine and demonstrate the primary sources of law. The secondary sources might impact a legit judgment but these sources absolutely do not have the commanding jurisdiction like the primary sources of law. Primary sources of tax law The following are the primary sources of Federal tax law: * United State Code (USC) Title 26; * Court of Federal Claims , Decisions of the USC, federal circuit courts, district courts, and the United States Supreme Court; * Title 26 of USC - Treasury Regulations; * Revenue Rulings , Revenue Procedures, Announcements, and Notices - IRS guidance published in the Internal Revenue Bulletin, and * Other IRS material, including Private Letter Rulings and Technical Advice Memoranda. * ("Tarlon Law Library", 2011). * The secondary sources of tax law There are some of secondary sources such as: * Dictionaries that are designed to give information about terms used in law called "Legal Dictionaries" * Some words & phrases that give the expression and cross-references * The source that contains brief, broad summaries of legal topics which called "Legal Encyclopedias" * Some essays that discuss about certain points of law called "Annotated Law Reports" * ("Library Of Congress", 2012). * The substantial authority * According to the Treasury regulations, those are considered...
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...John’s Tax Issues 1. (a) Fees received by a professional, like an attorney, are considered, by the IRS, as business income (Topic 407). The $300,000 will be treated as income for this year, but we can deduct any business expenses to help curb your tax liability. (b) An expense recovery is a reimbursement for expenses paid in prior years. These expenses were deducted on prior years returns. According to the Internal Revenue Service’s Publication 17, a tax payer must include recoveries in income during the year that it was received up to the amount that was deducted or credited to reduce your tax in prior years. We would need to look at your prior years returns, and since the recovery is for 2 years or more, we need to allocate on a “pro rata” basis the amount recovered. This will help us to determine if there is a deductible amount for this year, and how much to include in your income. (c) In order to reduce the taxable amount of John Smith, the prior year’s returns should be reviewed in order to establish minimum reportable expense recovery revenue. The settlement revenue needs to be added to business revenue for this year, and then all applicable business expenses can be deducted. Jane’s Tax Issues 2. (a) The interest and taxes that you pay on your home are tax deductible. If by selling your home, you have a gain, the IRS does generally allows you to exclude a gain of up to $250,000 (Topic 701). However, if you use the money to pay off your mortgage, you...
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...business expense for purposes of determining a taxpayer's adjusted gross income, net operating loss carryover, and net operating carryback, so long as that deficiency was attributable to the ordinary operation of the taxpayer's business” (Rovner, 2015, para. 6). Therefore, businesses could deduct the interest they paid for IRS penalties from previous years as a business expense before 1986. The decision of whether or not a business could deduct interest incurred as a result of IRS imposed penalties was brought to the spotlight in the 1990’s. “On their income tax returns for 1992 and 1994, Nick and Helen Kikalos deducted as a business expense the interest they paid on tax deficiencies that had been assessed for prior years. The Internal Revenue Service disallowed the deduction pursuant to a temporary regulation that deems interest owed on tax underpayments to be nondeductible personal interest, even if the income giving rise to the tax liability derives from the taxpayer's business” (Rovner, 2015, para. 1). The temporary regulation that Rovner is referring to is Reg. Sec. 1.163-9T of the Treasury Department. “Following its decision in Redlark v. Commissioner, 106...
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...calculations without the help of an accountant. Since then, the tax laws have increased so vastly in number and complexity that the average person cannot understand the laws enough to prepare their own return without assistance. This may come in the form of a tax accountant or software that walks the taxpayer through various rules that may apply to them. This paper focuses on how technology has changed the tax accounting profession throughout the years, highlighting the various innovations that have had the most significant impact. First, I will focus on how technology has changed the various aspects of tax accounting from recruiting clients and communicating with them, to filing completed tax returns and interacting with the Internal Revenue Service. Following, I will describe what tax accounting is likely to look like in the future due to some of the latest technological advances. Finally, I will summarize the major changes in the tax accounting profession over the years, and how tax accounting will continue to evolve moving forward. Technologies Impact on All Aspects of Tax Accounting Client Recruitment The most important aspect of a tax accounting is attaining clients. In the early years of tax accounting, the primary method of recruiting clients was through word of mouth, soliciting friends and acquaintances, and advertising in the newspapers or over the radio. In the early 1950s, television became the main source...
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...Businesses face internal and external factors on a daily basis. They also face various aspects of internal and external factors to become successful. Internal and external forces as well as trends continually create a foundation for a business. The actions taken on these forces dictate the success or failure of an organization. A SWOTT analysis of an organization assists the organization in defining the potential and risks for a business. Acknowledging and acting on the potential or risks will also decide the future of an organization. H & R Block, Inc. faces several internal and external forces and trends that affect its business. The intent of this paper is to develop a synopsis of the forces, which affect H&R Block, how the company adapts to change, the supply chain of the company, and any issues or opportunities. Legal and regulatory practices are external forces, which are both a strength and weakness for H&R Block. The Internal Revenue Services (IRS) develops regulator factors that tax preparers must comply with. Recent developments include the elimination of the debt indicator information, which provides tax preparation firms and financial institution with advance notice if a taxpayer has any leans against his or her tax refund. The elimination of this tool will create a downfall for both the lenders and individuals. The elimination of this tool will hinder the lenders, as they will not be able to determine the client’s worthiness, resulting in lower approval rates, and...
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...IRS, Treasury Regulations have the authority of law. B) Courts are bound to follow Treasury Regulations when they are in conflict with the law. C) The legal citation for a Treasury Regulation refers to the associated Internal Revenue Code section. D) Regulations are published in the Federal Register 3. The following statements about cash and accrual basis taxpayers are all false, except: A) Both cash and accrual basis taxpayers include prepaid rent in gross income. B) Both cash and accrual basis taxpayers are taxed on rent paid late when received. C) The timing of dividend income may depend on the record date. D) Constructive receipt is a concept affecting both cash and accrual method taxpayers. 4. Which of the following is considered to be net earnings from self-employment? A) Capital gains B) Wages received by an employee C) Winning lottery ticket D) Interest income from personal savings account E) None of the above 5. The following statements about the cash basis method of accounting are false, except: A) The prepayment made for future services may be deducted currently. B) Interest credited to a savings account is not taxed until withdrawn. C) Stock received for services rendered are taxed only in the year sold. D) The exchange of services may lead to gross income to both parties. 6. When approving a tax bill and there are differences between the House and Senate versions, the differences are...
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...Instructions: Please answer the questions below. In your answer you must cite a primary source (Internal Revenue Code Section, Treasury Regulations, Revenue Ruling, Revenue Procedure, Court Case) in order to receive credit for your answer. In addition, for each question, please explain any issues further if asked to do so. If it is not stated in the problem, assume that the year in question is 2011. See directly below for an example of the types of answers I am expecting....If warranted, please put the full internal revenue code section/treasury regulation reference. Example.... For Alternative Minimum Tax purposes, what method should a computer placed in service in 2010 be depreciated under? 150% declining balance method, §56(a)(1)(A)(ii)(I) 1. Which regulation (final or temporary) details the types of miscellaneous expenses that are subject to a reduction of 2% of a taxpayer's AGI? Temporary Regulation, §67(a)(1)(T) 2. Which regulation (final or temporary) details the exact requirements that need to be met (after 1969) for a taxpayer to deduct moving expenses as a for AGI deduction on page 1 of the 1040? Final Regulation, § 1.217-1(3) 3. Which Internal Revenue Code section allows taxpayers to deduct a reasonable allowance for the exhaustion, wear and tear of property used in a trade or business? § 167 Depreciation(A)(1) 4. Your company has just placed in service a large offshore drilling platform in the Gulf of Mexico. Which asset class is this asset classified...
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