...INCOME TAX 216 The Most Notorious Tax Evaders Instructor : Mr. Carlisle November 16, 2011 Bettie Lawrence Here are some of the most famous tax evasion cases. It’s hard to believe these people, with all of their resources, get themselves in this position. These cautionary tales, straight out of Hollywood, will help you ring in the tax season. Marc Anthony Latino pop sensation Marc Anthony had a run in with the IRS when he had four years of unfilled tax returns. Anthony, along with a team of lawyers, convinced the IRS that he assumed that his financial team filed his tax return for him and that’s why he didn’t do it himself. He was able to get out of doing jail time but had to pay 2.5 million dollars in back taxes. Wesley Snipes Wesley Snipes, the star of martial arts action hits such as the Blade Trilogy and Passenger 57, didn’t file his tax returns for political reasons and was sentenced to 3 years in jail and had to pay millions in back taxes. Abbot and Costello The comedic duo Abbot and Costello were charged with tax evasion by the IRS in 1956 and had to sell their homes and most of their assets which included the rights to many of their blockbuster films, such as Abbot and Costello meet Frankenstein. Abbot and Costello are perhaps best known for their work in radio and their famous “Who’s on first?” joke. Al Capone In 1929 Eliot Ness lead an investigation on famous gangster Al Capone in hopes to get a conviction for tax evasion. Al Capone was indicted...
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...Do IRS Audits Deter Tax Avoidance? RES 351 July 14, 2014 r Research is done for many reasons. It can be used to solve problems or issues that a business is having. Research can be used by business to determine if making certain changes will yield the results the company desires. Many businesses use research when developing new products to determine what consumers think of the product. They are trying to determine if consumers will purchase the product if they continue with development. This particular essay is focusing on the IRS auditing of business and how they may or may not take aggressive approaches in order to avoid those audits. Three different universities compiled the research article used for this paper. It focuses on corporate tax avoidance and whether strict IRS monitoring deters corporate tax avoidance. When reviewing this article, it is apparent that they used the reporting study method for their research. This method uses previous data and data sources to reiterate the data for a better understanding. This article uses data from the TRAC (Transactional Records Clearinghouse), that the IRS provides data directly too. Next we will be discussing how the research is providing insight into the research question. There are many factors that the researchers took into consideration. Some factors include the perception of management; whether stricter IRS monitoring constrains some business' aggressive tax planning, and management's role in exploiting...
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...Case Analysis for Chapter 3, Case Number 3-5 IRS Whistleblower and Informing on Tax Cheats 1. The ethical issue in this case is Wall Street insider Mr. ABC disclosed the information of Illinois Tool Works Inc. (ITW) tax fraud to IRS and received a whistleblowing award of $2 million. 2. The accounting issue involved is ITW enlisted a Swiss bank to fabricate unauthorized tax deductions in order for ITW (bank’s client) to claim the same deductions as an offset to ITW’s otherwise taxable income. 3. The incorrect or improper action taken in this case was ITW conducted illegal tax avoidance by involving a Swiss bank to fabricate unauthorized tax deductions by duplicating same deductions for both of them. 4. The correct or proper action that should have been taken is ITW should have followed GAAP and related regulations to not duplicate tax deductions and avoid tax legally. 5. Answers to case questions: 5.1 Should we regard Mr. ABC as a new “caped crusader” or an opportunist? Explain the reasons for your response. In my opinion, Mr. ABC should be regarded as a “caped crusader”. As a Wall Street insider, he has a moral sensitivity that “it was just a fake deduction scheme”. His motivation is to criticize the government’s ability to identify and investigate sophisticated tax shelters. He took the ethical action to expose the fact to IRS. I don’t think Mr. ABC is an opportunist, who is totally self-centered and only took advantage. He has already...
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...Chapter 1 1. What is the difference between Data and Information? a. Data: raw facts that describe the characteristics of an event that, in isolation, have little meaning b. Information: data organized in a meaningful way to be useful to the user 2. What makes Information useful? c. Data is often processed (aggregated, sorted, etc.) and then combined with the appropriate context d. Decision makers typically require useful information to make decisions e. Must be relevant and reliable 3. Define “Relevant” in the context of useful information. f. Predictive value (helps with forecasting the future). g. Feedback value (corrects or confirms what had been predicted in the past). h. Timeliness (available when needed or in time to have an impact on a decision). i. Information must be relevant to the decision maker j. Information is relevant only if it would affect a business decision k. Information is relevant when it helps users predict what will happen in the future (predictive value) or evaluate how past decisions actually worked out (feedback value). l. It is also relevant if the information is received in time to affect their decisions (timeliness). 4. Define “Reliable” in the context of useful information. m. Predictive value (helps with forecasting the future). n. Feedback value (corrects or confirms what had been predicted in the past). o. Timeliness (available...
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...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 ending with reference to the month of December 52-53-week year ending with reference to the month of If box (2)...
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...governance in the specific and limited context of the governance questions contained in the new IRS Form 990 (published by the IRS in 2008 and applicable to 990 filers based on a 2009-2011 filing year phase-in period depending on the size of the nonprofit). It is intended to provide some general guidance on the establishment of processes and/or policies to address a specific governance question in the Form. The subject matter of that question implicates a broad array of legal and practical issues ranging far beyond the immediate subject matter of the question itself. This material may address some of those issues but does NOT attempt to review them comprehensively and is NOT intended to be relied on for guidance on how they should be addressed in any specific situation. Whether or not a nonprofit organization adopts a specific governance process or policy (or modifies an existing one), either in response to the disclosure requirements of the new IRS Form 990 or to change its governance practices for other reasons is a matter to be carefully considered by that organization, with input from its board and advisors and evaluation of its specific circumstances. The IRS has explicitly stated that adoption of the policies and practices about which the new Form 990 asks is not mandatory, although the IRS has also indicated that it attaches significance to the manner in which all tax-exempt nonprofit organizations govern themselves. These sample policies are not intended to suggest...
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...Nonprofit Activity Types The Internal Revenue Service tax code describes allowable purposes of 501(c)(3) nonprofit organizations as serving religious, educational, charitable, scientific, and literary purposes. This broad definition encompasses a wide variety of organizations — from those conducting medical research to those providing free legal services to low-income families to those preserving historic sites. It also includes corporations and foundations founded to support such activities. We’ve organized a quick overview of categories and kinds of activities. Arts, culture, and humanities This category probably makes you think of museums and concert halls. You’re right, but that’s not all. They belong here along with these organizations: * Organizations and activities that further enjoyment and understanding of all kinds of arts * Media and communications organizations * Groups furthering the understanding of history and genealogy * Halls of fame * Historic preservation * Organizations offering services to artists, writers, and performers * Organizations for the training and education of artists, writers, and performers Did you think of heredity-based organizations (such as Sons of the Revolution or Daughters of the Confederacy)? They belong here, too — along with nonprofit circuses! Education You thought schools...
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...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 and...
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...Forensic Accounting Name: Institution: Forensic accounting, also referred to as investigative accounting involves in the utilization of accounting concepts as well as techniques in solving legal problems. It is the work of forensic accountants to investigate and document fraud (financial) as well as white collar crimes like embezzlement. They also assist attorneys in litigation support and law enforcement agents in investigating and solving financial inconsistencies (Silverstone, 2012). Corporations and Legal firms consult forensic accountants to aid in allegations of fraud. It is therefore important for forensic consultants to be very good at their work considering their clients. To be an excellent forensic attorney one needs to possess certain skills. Important Skills that a Forensic Accountant needs to possess: Firstly, a good forensic accountant must be competent in accounting. One must initially be a certified public accountant before considering working a career in forensic accounting. This is because one need to be familiar with basic as well as complex accounting in order to perform the necessary tasks that forensic accountants are contracted to do. CPAs are evaluated by the Certified Financial Forensics (CFFs) credential which is exclusively issued to CPAs who demonstrate expert ability in forensic accounting through their education, experience and skills (Singleton, 2010). ...
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...ACC 565 WEEK 7 ASSIGNMENT 3 REORGANIZATIONS AND CONSOLIDATED TAX A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-7-assignment-3-reorganizations-and-consolidated-tax Visit Our website: http://hwsoloutions.com/ Product Description ACC 565 Week 7 Assignment 3 Reorganizations and Consolidated Tax, Compare the long-term tax benefits and advantages of each type of reorganization, and recommend the type of reorganization that will be most beneficial to the client. Reorganization is the term used to refer to the concept of acquisition of new entities is such a way that all transactions made are nontaxable. The support for this method of acquisition of new assets by an organization is present in the US law. Section 368 talks about this concept in detail and is issued under the supervision of Internal Revenue Service. Reorganization comes in different forms namely type A, B, C and D. the explanation for these types is given below. Type A: It refers to the reorganization that takes place in the form of consolidations and mergers Type B: It refers to the reorganization in the form of utilizing the voting stock of the company undergoing the reorganization to acquire the stock of the company being acquired Type C: it refers to the reorganization style in which the company being acquired gets liquidated and the shareholders of the acquiring company buy the shares of the target company Type D: It refers to the reorganization style in which division and...
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...Abstract The intent of the paper is to examine current trends in the most commonly defined contribution retirement plan, the 401(k) plan. It will outline the best course of action to achieve an effective plan and maximize employee participation. This paper will review current mandates regulated by government agencies and explain the importance of remaining in compliance. Finally, the paper discusses best practices for implementation, as well as the best ways to promote a 401(k) plan within your organization. Throughout the process the details of the 401(k) plan at Tampa Bay & Company, a small sized organization, will be compared to other non-governmental company 401(k) plans to highlight specific examples and draw comparisons. Overall 401(k) Trends In response to the economic downturn there has been an increasing surge of employers who are lowering benefits associated with 401(k) plans. The most common trends are employers reducing the amount of match, reducing the portion of the match, or eliminating the match altogether. Over the past couple of years several surveys have been completed by investment firms, revealing that the number of employers who have decreased company contributions is on the rise. Some surveys show as low as a 7% decrease, but the majority of surveys claim that the amount is closer to 25% of employers who decreased matches or ceased employee contributions all together. Nearly two-thirds of employers still continue to provide matching contributions...
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...specify a due time to pay. For the purpose of selecting payments methods for the services and products purchased by the government agencies, FAR 32.113 should be referenced (Legal Information Institute, 1992). The purpose of this paper is to discuss the three payments options available to government and their advantages and disadvantages, three elements of the prompt Payment Act; next, it will discuss the key areas of cutting government costs, two revisions to TINA that will decrease the requirements for the government’s procurement of technical data and computer software. In the end, the paper will discuss the Buy American Act’s exceptions. Government Payment Options For purchasing the software for tax returns processing, contacting officers on behalf of Internal Revenue Service’s (IRS) can select various effective payment methods. Contracting officer uses the customary contract financing ref. 32.113 for review and uses it without getting the permission from top management. The Contracting officer can select three payment methods that are progress payment, performance-based payments, and payment by government charge cards (52.232-1 Payments, n.d). Progress payments method: Progress payments method, as prescribed in 32.502-4(a), is used by the government to pay contractors on the demand of the contractor during the work progress, usually on a monthly basis, $2500 or according to the approval of the contracting officer. If the contractor does not demand the small...
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...Stakeholder Influences HSM/270 October 4. 2012 Stakeholder Influences In the field of human services one of the most influential stakeholders when it comes to program planning and evaluation is the funding source. Often times the funding source has a specific set of requirements that the program and agency must meet in order to obtain or maintain funding. The program planning and evaluation process is greatly affected by this. The needs and expectations of the stakeholders influence program planning and evaluation because they must adhere to specific restrictions placed upon them by the IRS and other government agencies. The funding source usually wants to proposed program to have similar goals and objectives along with similar values. The program planning may be changed in order to line up with the values of the funding source. The Madison Children’s Hospital seeks to start a program which research is done to look into the issue of chronic illness in adolescents ages 8-21. The funding source for this program is the National Institute of Health Care. The National Institute of Health Care seeks to fund research to improve self-management and quality of life for children with chronic illness. The needs and expectations of the hospital are to address the concerns of a lack in self-management of chronic illness. The hospital is interested in researching the causes for the lack of self-management which is causing an increase in complications as well as a lack of school...
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...I.SUMMARY Introductory Page This aspect covers the product description, target market, demand and supply analysis, and demand and supply Gap, marketing programs, pricing structure and projected revenue, contains also the information about the Aqua Long Life Refiiling Station. The business area where will be put up and who are really the target customers of Aqua Long Life Water Refilling Station. Our strategies on how we stimulate and satisfy the target customers’ needs and wants and expectation through the product and services of Aqua Long Life Purified Water Refilling Station, how are we going to introduce purified water refilling station business to the public to make competitive advantage over competitor specially target market which is better than competitors. Encourage everyone to taste the purified water and build customer relationship in order to gain loyalty from them. Comprises also the price range of our competitors effect on how are we going to price our purified water, if it is based on competitors price or base on our cost. The greatest of all is the projected income that covers the objective to earn profit for covering expenses and for the future purpose of the Aqua Long Life Purified Water Refilling Station business. Name of Entrepreneur Aqua Long LIfe is a purified water refilling station that is located at Dona Salud Village, Sasa Davao City. We offer the taste of our purified water that will suite to your taste...
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...Salvatore's Chapter 14: a. Discussion Questions: 12 and 15. b. Problems: spreadsheet problems 1 and 2. 12. What is the rationale behind the minimax regret rule? What are some less formal and precise methods of dealing with uncertainty? When are these useful? The rationale is to reduce the threat associated with business decisions and minimize the mistakes from those decisions. The miscalculations associated with each decision is calculated by subtracting the payoff from the maximum payoff under the same state of nature. The decision maker then determines the strategy with the minimum of these maximum regrets under any possible state of nature. Some of the more informal and less precise methods of dealing with uncertainty include the following: • The acquisition of additional information • Referral to authorities such as the Internal Revenue Service and the Securities and Exchange Commission to remove any uncertainty regarding their specific expertise • Attempting to control the business environment for their respective firms using things such as patents and copyrights. • Diversifying the product line as well as security holdings within the company’s portfolio 15. How does the adverse selection problem arise in the credit-card market? How do credit-card companies reduce the adverse selection problem that they face? To what complaint does this give rise? Adverse selection/negative selection pertains to a market in which unwanted...
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