...as an S corporation. In 2010, Spartan took immediate deductions of $4,000,000 for some certain tax items. Because of the code changed in 2011, Spartans were required to bring into income the benefit of the prior immediate deductions over a four-year period, which means Spartan would add back income of $1,000,000 per year from 2011 to 2014. Issue: When it comes to tax return, Spartan did not report or pay built-in gains tax on the $2,000,000 of add back income for 2013 and 2014 when Spartan become a S corporation. The IRS required Spartan...
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...Running Head: THE PROCESS AND PREVENTING THE RISK OF A TAX AUDIT 1 The Process and Preventing the Risk of a Tax Audit By Marivic Engquist National American University August 12, 2012 THE PROCESS AND PREVENTING THE RISK OF A TAX AUDIT 2 Abstract This paper illustrates how an Internal Revenue Service (IRS) audit strikes fears in individuals, small businesses and large corporations. By understanding the process of a tax audit and reporting information that is understandable, people can lesson some of the risk. According to Sidney Weisman, an attorney and senior editor with the Research Institute of America, publisher of tax materials for professionals, “the easiest way to survive a tax examination is to prepare for one at the time you fill out the tax return” (Rankin, 1981, p. 2.29). THE PROCESS AND PREVENTING THE RISK OF A TAX AUDIT 3 The Process of Lessoning the Risk of a Tax Audit The tax audit have been feared by many and embraced by the few. Even though there are ways to reduce the likelihood of an audit, one must understand how the audit process works. If selected, a tax audit usually means corresponding with the IRS, searching through files, and producing records. It can also mean paying additional taxes, interest, or a penalty. Reducing the likelihood of an audit...
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...the liability assumed by the corporation is not a recognized gain to the transferor – it instead reduces the adjusted basis of the transferred property. If the liability assumed in the transfer exceeds the property adjusted basis – Section 357(c) provides that the excess liability is a recognized gain to the transferor. The prospect that business persons who incorporate their businesses, and in so doing might incur sizable income taxes due to transferred property liabilities exceeding adjusted basis, has no doubt led many to consider ways to increase the adjusted basis of the property transferred to avoid the tax. I suspect that research will uncover IRS Revenue Rulings, court cases, articles, etc., that will detail attempts by property transferors to avoid the gain recognition due because of Section 357(c) in Section 351 transactions. That will be the focus of this paper. Research Lipton and Bender3 describe...
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...COURT COMPARISON AND CONTRAST PAPER 1 Court Comparison and Contrast Paper COURT COMPARISON AND CONTRAST PAPER 2 Comparing State and Federal Court Systems There are many factors that involve the differences in state and federal courts. The three major factors that separate the two court systems are the structure, the selection of judges, and the types of cases that are presented in each of the two court levels. There are many reasons that there are two different court levels. This is so that we have checks and balance between the federal courts and the state courts. The structure of the Federal courts is based off Article III of the constitution of the United States. This article gave the federal system the power to create the Supreme Court as well as all the lower federal courts. The federal court system is broken down into six different types of courts which starting from the highest are the Supreme Court, United States Court of Appeals, United States District Courts, as well as the special federal courts which are the United States Bankruptcy Courts and the United States Courts of Special Jurisdiction. Within each of these courts they each handle specific cases that are presented to them. The State Court System is broken down into four different levels of courts. First are the trial courts...
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...Chances to adopt ADR in administrative disputes (Explaining on tax dispute instance) Chuluuntsetseg Ochirjantsan* (Member of Mongolian Bar Association, Senior teacher at Law school of NUM) I. II. III. IV. V. VI. Introduction The origin and development of ADR in Mongolia Concept and stages of administrative proceeding Necessity to adopt mediation procedure on Mongolian tax case and dispute Conclusion References Abstract Tax law covers a significant presence in administrative law sectors. Tax dispute and cases are part of the administrative law disputes and resolving tax dispute and cases through ADR is much peaceful mechanism. Despite the mediation procedure on tax cases and dispute is occupying great position in the national legal systems of countries, international level dispute resolution based on the principles of mutual trust is a flexible and effective method. Countries tend to implement mediation procedure on tax cases in accordance with their legal culture, consciousness level and characteristics of the population regardless of their legal family. Reconciliation and mediation on tax cases and dispute is system which settling cases by parties making dialogue to find mutual consent that can fit to the actual situation without getting restricted by a tight law regulation. Therefore the necessity to resolving tax cases through reconciliation and mediation is seen as a pressing problem in many countries. Key words: Reconciliation And...
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...General Sales Tax Act, 1957 4 Appellant’s Contentions 4 Respondent’s Contentions 6 Opinion of the Court 7 Question as to Interpretation 10 Decision 11 Comment 11 Facts * That Tata Consultancy Services (herein after the Appellants) provided consultancy services including Computer Consultancy Services. * Pre-manufactured software or Computer Software Packages off the shelf (canned software) is sold in the capacity of sub-licensees. (oracle, lotus etc.) * Further, as a part of the business, custom made software is also made and loaded on their customer’s computers. (hereinafter referred to as “uncanned software”) Legal History * In respect of the canned software the Commercial Tax Officer, Hyderabad, passed an order under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 [hereinafter called 'the Act'] holding that the software are goods. The Commercial Tax Officer accordingly levied sales tax on this software. * The Appellate Deputy Commissioner of Commercial Taxes also held that the software were goods and liable to tax. However, the matter was remanded for working out the tax. * The Appeal of the Appellants, before the Sales Tax Appellate Tribunal, Andhra Pradesh, was dismissed. * The Appellants then filed a Tax Revision Case in the Andhra Pradesh High Court, which was also dismissed Issue Whether the canned software sold by the Appellants can be termed to be "goods" and as such assessable to sales tax under the...
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...her budget address to a group of commissioners, “detaining defendants in jail while they await trial is very expensive for the county and is detrimental to our communities” (1). For the purpose of this paper the focus will be on the incarceration of children ages 10-18 and how such can be not only detrimental to communities but also to societies and our economy.Something has to change, for some time now a large part of the United States population has bought into the whole concept of placing children who break the law in juvenile correctional facilities. As tax payers we must come to the realization that something needs to change if we want these troubled youth to have a bright future ahead of them and become law-abiding tax payers. As a country we are spending billions of dollars buying into this whole concept of incarcerating young people, while research shows it is ineffective on rehabilitating the lives of juvenile offenders. Richard A. Mendel reports that a number of studies actually show that the incarceration of juveniles, “actually increases recidivism among youth with lower-risk profiles and less-serious offending histories” (6). In order to put an end to this epidemic of just locking kids up and costing taxpayers billions of dollars we must use some alternative methods when dealing with juvenile offenders. If we want to build a stronger economy for the future we must invest less money into locking kids up and more money in building them back up. According to Mendel view...
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...(NDA) is a research based international law firm with offices in Mumbai, Bangalore, Silicon Valley, Singapore, New Delhi, Munich. We specialize in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner. We focus on niche areas in which we provide significant value and are invariably involved in select highly complex, innovative transactions. Our key clients include marquee repeat Fortune 500 clientele. Core practice areas include International Tax, International Tax Litigation, Litigation & Dispute Resolution, Fund Formation, Fund Investments, Capital Markets, Employment and HR, Intellectual Property, Corporate & Securities Law, Competition Law, Mergers & Acquisitions, JVs & Restructuring, General Commercial Law and Succession and Estate Planning. Our specialized industry niches include financial services, IT and telecom, education, pharma and life sciences, media and entertainment, gaming, real estate and infrastructure. IFLR1000 has ranked Nishith Desai Associates in Tier 1 for Private Equity (2014). Chambers & Partners has ranked us as # 1 for Tax, TMT and Private Equity (2013). Legal Era, a prestigious Legal Media Group has recognized Nishith Desai Associates as the Best Tax Law Firm of the Year (2013). Legal 500 has ranked us in tier 1 for Investment Funds, Tax and TMT practices (2011/2012/2013). For the third consecutive year, International Financial Law Review (a Euromoney publication) has recognized us as the Indian “Firm of the Year”...
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...Alternative Dispute Resolution Paper Krista Brown LAW/531 August 5, 2015 Instructor: Beth Ann Lee Alternative dispute resolution (ADR) is defined as a forum or means for resolving disputes (such as arbitration or private judging) that exists outside the state or federal judicial system (Mallow, Barnes, Langvardt, Prenkert, & McCrrory, 2015, pg. G-1). ADR can be done through stages of communicating and agreeing rather than taking place in a long drawn out process in court. Arbitration and mediation are the-two primary forms of ADR, although there are others (Peterson, 2012). Allowing the parties to find a resolution that works for both is the most cost effective way to resolve a dispute. Regardless of profitability, size, ownership, or industry sector, all businesses share a common problem: conflict and conflict resolution (McDowell & Sussman, 2004). Avoiding ADR can result in an exorbitant amount of unnecessary legal fees for both parties. Alternative dispute resolution emphasizes mutual problem solving and broadens options for resolving conflicts in hopes of minimizing hostility (McDowell & Sussman, 2004). If ADR is not utilized, the other option is litigation. While litigation is an option, it is typically used as a last resort due to the fact that it is much more expensive and time consuming. Opperman’s (2000) study found the following: ADR effectiveness in twenty-nine medical malpractice claims against the government handled by Assistant U.S...
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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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...How Technology Has Changed Tax Accounting How Technology Has Changed Tax Accounting The profession of tax accounting has been around for almost a century with the ratification of the 16th Amendment in 1913, which allowed the United States Federal Government to levy taxes on individuals’ income (Rettig, 2006). At that time, the tax laws were fairly simple and most people could complete their tax returns and the required 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. ...
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...Research Paper #1 – Williams Aero Flight Services Introduction I have been hired as the CPA Tax Advisor for Williams Aero Flight Services. Several tax issues have been brought to my attention and it is my job to advise the management of Williams Aero Flight Services on their recent tax issues. Relevant Facts Williams Aero Flight Services is a charter carrier operating out of Manassas, Virginia, that flies both passengers and cargo. Prior to 2011, their primary business was the transport of corporate executives. Currently, their primary customer for both the cargo and passenger divisions is the U.S. Military, which represents 10% of their total revenue. Williams Aero Flight Services’ fleet consists entirely of jets. A typical, properly maintained jet aircraft has a useful economic life of thirty years. Frequent and necessary maintenance must be performed on the engine and airframe in order for the jet to last all thirty years. The aircraft engines and auxiliary power units must be serviced every 24 to 60 months, based on usage. In order to service an engine and power unit, the engine must be removed from the aircraft and sent to a third party specialized maintenance company that maintains and repairs the engines and power units. The annual cost of these repairs, resulting from the age of the fleet and the annual usage, is $2,000,000. Annual revenue is approximately $40,000,000. During a preliminary meeting, the IRS claims that the jet engines and power units...
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...Weekly Fed. S 383 Briefs and Other Related Documents Judges and Attorneys Oral Argument Transcripts with Streaming Media Supreme Court of the United States UNITED STATES, Petitioner, v. FIOR D'ITALIA, INC. No. 01-463. Argued April 22, 2002. Decided June 17, 2002. Restaurant challenged use by the Internal Revenue Services (IRS) of aggregate method to determine, assess, and collect its share of Federal Insurance Contribution Act (FICA) taxes on tips received by its employees. The United States District Court for the Northern District of California, 21 F.Supp.2d 1097, granted summary judgment for restaurant, and IRS appealed. The Court of Appeals for the Ninth Circuit, 242 F.3d 844, affirmed, and certiorari was granted. The Supreme Court, Justice Breyer, held that: (1) the law authorized the IRS to base its assessment upon its aggregate estimate of all the tips that the restaurant's customers paid its employees; (2) such a method is not precluded by negative implication from statutes which authorize the IRS to use methods of estimation for determining income tax liability and which authorize the Secretary of the Treasury to adopt regulations that prescribe mechanisms for employers to adjust FICA tax liability; (3) fact that an aggregate estimate will sometimes include tips that should not count in calculating the FICA tax the employer owes did not render use of...
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...Moise saidkov Term paper Business law Historically, embezzlement became a crime because thefts were occurring in which the elements of larceny could not be met because the thief had the right to possess the funds; thus, the prosecution could not prove the element of a “trespassory taking.” Meanwhile, proving embezzlement only requires showing either that the employee had possession of the goods or funds because of the employee’s position or that the employee had the authority to exercise substantial control over the goods or funds. Courts determine the question of substantial control by considering the employee’s job title, job description, and the practices of that particular company. Some states also have fraudulent conversion statutes, which provide for the criminalization of actions that border between larceny and embezzlement. The government can also charge individuals with attempted embezzlement. Methods of embezzlement differ. Some embezzlers “skim off the top” so that they continually acquire a small amount over a particular time interval. This method reduces the likelihood of being caught. On the other hand, some embezzlers steal a very large amount of the goods or funds on a single instance and then disappear. Sometimes company manager’s under-report income to their supervisors and keep the difference. The Internal Revenue Service requires that embezzlers include embezzled funds in their yearly income taxes. Upon returning the funds or paying restitution...
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...INCOME TAX ADMINISTRATION AND PERFORMANCE OF SMALL SCALE ENTERPRISES IN UGANDA ACASE STUDY OF GULU MUNICIPALITY BY HENRY EGYEYU ABSTRACT The research study was aimed at establishing effect of Income Tax Administration on the performance of small Scale Enterprises. Using Gulu Municipality as a case, in all Small Scale Businesses which were selected were analyzed and supplementary data was got from the respondents. The objectives of the study were to examine the Income Tax Administration, to examine the Performance of SSEs in terms of Growth, Profitability, and Survival, to find out the relationship between income tax administration and the performance of SSEs. In the methodology the researcher used research design, study population, sampling procedures which included sample design and also sample size, the data sources like primary data, secondary data, data collection methods and other methods of collecting data. Presentation, interpretation, and the discussions of the findings basing on the responses from the respondents of the questions and the findings were tax payers don’t get tax education, make little profits from their business among others Summary, conclusions, recommendations of the findings of the research analysis the findings of the study and draws summary of the main findings of the study and finally the research draws and gives recommendation and further research. CHAPTER ONE ...
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