...Prison Inmates claiming millions in tax refund Over the past few years prisoner tax refund fraud has sky rocketed. According to the article - (Prisoners rake in millions from tax fraud, 2013) “In 2010, more than 91,000 inmate returns claimed $759 million in fraudulent refunds.” 1 That figure was more than double from the previous year. How is it a convicted felon who is behind bars still gets to cheat the system by robbing innocent tax payers of billions in tax refunds on an annual basis? This type of white collar crime is easily committed, all that is needed is the use of a computer with internet access and a great deal of time which a prisoner is in no shortage of having. They can educate themselves on how to hack into hundreds of databases that contains people’s personal information including social security numbers. Once that information is gathered they can begin the process of stealing tax refunds they are certainly not due by filing fraudulent income tax forms, sometimes hundreds at a time by using legitimate names and social security numbers, sometimes the names of their inmates, relatives or even people who are deceased. It is the duty of the IRS to fix this problem. This paper will highlight a few cases of inmate tax refund fraud and what measures the IRS has taken and will continue to take in order to protect innocent victims against this type of fraud. Case summaries involving inmate tax refund fraud The following cases are classic examples of...
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...INCOME TAX Aylin Alishahi University of Houston - Victoria Abstract The main idea of this paper is to introduce the concept of Accounting for Income Tax. As part of our discussion, we will understand the meaning of Income Tax and Tax Accounting. We will also look into the different terminologies of GAAP and IRS and the differences between the two. There are two basic kinds of differences between the two – temporary and permanent. In addition to looking at the basic kinds of differences, we will also look into Net Operating Losses. Examples have been provided for all the concepts to better understand the idea behind the concept. Although, this paper does not provide the detailed explanation, it will help us understand the overview of the whole theory. Keywords: Income Tax, Tax Accounting, Accounting for Income Tax, Temporary Differences, Permanent Differences, Net Operating Losses. ACCOUNTING FOR INCOME TAX Income Tax and Tax Accounting Income Tax is defines as “A tax that governments impose on financial income generated by all entities within their jurisdiction”. It is required by the law that businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. Tax Accounting is defined as “Accounting methods that focus on taxes rather than the appearance of public financial statements”. Tax accounting...
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...MULTISTATE CORPORATE TAX COURSE John C. Healy | Michael S. Schadewald 2014 EDITION CPE CoursE! BONUS Earn CPE Credit and stay on top of key Multistate Corporate Tax issues. Go to CCHGroup.com/PrintCPE 2014 EDITION MULTISTATE CORPORATE TAX COURSE John C. Healy | Michael S. Schadewald ii Contributors Authors ........................................................... John C. Healy, MST, CPA Michael S. Schadewald, PhD, CPA Technical Review ....................................................... Sharon Brooks, CPA Production Coordinator ................................................... Gabriel Santana Production ......................................................................... Lynn J. Brown Layout & Design..................................................................Laila Gaidulis This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. © 2013 CCH Incorporated. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 800 344 3734 CCHGroup.com No claim is made to original government works; however, within this Product or Publication, the following are subject to CCH’s copyright: (1) the gathering, compilation...
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...Common Tax Tips for the Common Taxpayer When the dreaded April 15th begins to creep closer, the last thing on everyone’s mind is trying to figure out how to file an income tax return. With all the complicated forms and line items, it is not a fun process to try to figure out. However, it does not have to be that way! If you knew the basics of how the US Individual Income Tax Return or Form 1040 is put together and some tips to help you file one, then it can turn into a way to receive a fat refund check. This is your chance to get back some of that well-earned income that has been taken out of every paycheck and save yourself some stress every April. Do you even have to file an income tax return? Whether or not you should file taxes depends on a variety of factors, including your citizenship status, gross income, age, filing status and whether anyone can claim you as a dependent. But basically, if you're not a dependent of someone else, such as your parents, you must file a tax return if you are under 65 and your gross income exceeds $9,350. Now what is necessary to prepare an income tax return? Well, Income tax is a tax applied on the income you receive from your employer and any other income that you have received. There are several forms that are needed in order to report all that income and properly file the Form 1040, but not all of them may apply to everyone. The most basic forms include: The W-2 Form This form applies to everyone that receives income from an...
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...Obtain PAN for the Non-Resident else 20% rate u/s 206AA. • Tax calculated should be increased by surcharges except where treaty rates are applied. • Tax has to be grossed up u/s 195A for all agreements entered after 2.6.2002 where tax is agreed to be borne by the payer. • Tax has to be deducted only if it is required to be deducted on sums chargeable to tax in India under the Income-tax Act. Circular No. 786 dated 7th February, 2000. • TDS on salary to non-residents (including Indian NR) is governed by sec. 192 and not 195. • Non-residents making payments to non-residents are liable to TDS if the payments are chargeable to tax in India (228 ITR 487-AAR). • Exchange rate on the day on which TDS is required to be deducted has to be considered. • Payer can make a reference by simple letter on letter head/plain paper to Assessing Officer u/s. 195(2) of the Act (under Rule 10) if he opines that only portion of payment is going to be taxed and hence a request is made for determination of the amount on which tax has to be deducted. • An application u/s 195(3) can be made by the payee to the AO for no deduction of tax for receipt of sums other than dividends or interest. (Form 15D). Certificate is valid for the financial year specified therein unless cancelled by AO anytime before the expiry of the financial year. • An application u/s 197 can be made by the payee to the AO for no deduction of tax or at a lower rate of tax than rate prescribed to be deducted. (Form 13). • Certificates...
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...new legal permanent residents in the United States (Monger and Yankay). Whereas there are more than ten times that amount of illegal immigrants living in the US, estimated to be 11.5 million … with 35,000 illegal immigrants residing in Washington, D.C (Hoefer, Rytina, and Baker: Dane). Noel Merino defines ‘Illegal Immigrants’ as people who enter the United States unlawfully, or may be admitted on a temporary basis and stay past the date they are required to leave (14). Since America is a land of dreams and opportunity, thousands of people have taken the risk to come here and work without legal documentation which has led to various social problems. Illegal workers taking jobs from legal immigrants, the state and federal government losing tax revenue, unfair use of social benefits, fraudulent documents are counterfeited, and countless employers taking advantage of undocumented employees are all problems caused by illegal immigrants and could be fixed by lawful deportation back to their homeland. The main reason individuals enter the United States unlawfully is to seek employment to support themselves and/or their family. While Americans are lawfully eligible to work in the US and legal immigrants/residents have to work hard to prepare their government application to get employment authorization, illegal workers obtain jobs unlawfully. For a legal immigrant to get employment authorization or a work permit, it usually takes approximately...
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...ADMS 3541 Winter 2016 Assignment 1 Due at the start of class in Week 8 (Section R on March 3,2016) 100 marks, 25 each question. Instructions: Each group must submit the assignment to the instructor at the beginning of class on the date the assignment is due. Textual portions must be typed and double-spaced. This does not include variables, labels and brief notes of explanation. Use at least one inch margins all around. 1. Double-sided is preferred, if you can do it with your printer. 2. Use 8 ½ X 11 paper only. 3. Do not use report covers. 4. Staple your assignment prior to handing it in. 5. Be sure to print clearly your names, student numbers, section and Assignment 1 at the top of the first page. 6. Spelling and grammar may affect your marks. 7. Late assignments will be penalized and no assignments will be accepted after the last class. Question 1: Risk Management Meet the Jones family: Mom, Maria age 47 Dad, Daniel age 51 Three kids – Patty (6), Kobe (9) and Gordon (12). They have come to you for advice on how to manage their risk. They have provided you with the following information about their family. Maria and Daniel both work in the financial services industry, which is how they initially met. Daniel was working as a Sales Representative for a mutual fund company and Maria was his Inside Sales Associate. They continue to work for the same firm; however, Daniel is now VP of sales earning an annual salary of $250,000 plus bonus...
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...the other investments. *Investing-RULE of 72 Divide the % of your return by 72 = years to double money So, if you have a 15% return, then: 72/15 = 4.8 years to double this You can have $100,000 and invest it wisely and end up with $300,000 in 20 years. But of the $300,000, taxes can cost alot, so you should put your money in business. Business does not have as many taxes to be paid cause there are alot of deductions. For example: When an individual buys copy paper that cost $10, you also pay tax so it cost $12. But when a business buys it, the business can write it off for a business expense and no extra tax is paid. Must learn ways to create a passive income (Income that does not stop but continues til your death). Innovations pay you for your lifetime Real estate pays you for your lifetime because you get rent money. Slide 3 *3 aspects to state and business planning 1. Liability protection-set up 1 or more entity 2. Tax strategy- tax breaks must be used to pay less tax 3. Growth opportunities *Setting up a business- 1. The type of entity 2. how to reduced liability 3. how to reduced taxes...
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...Leone Gazette Vol. CXL, No. 37 dated 20th August, 2009 THE GOODS AND SERVICES TAX ACT, 2009 ARRANGEMENT OF SECTIONS Section 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. PART I–PRELIMINARY Commencement. Interpretation. Consideration. Fair market value. Related persons. Supplies of goods and services. Taxable activity. Taxable supply. Exempt supply. Zero-rated supply. Exempt import. Exemption from GST. Supplies outside the scope of GST. No. 6 Goods and Services Tax Act 2009 ii PART V –BASIC RULES RELATING TO IMPORTS 25. Time of import. 26. Value of import. PART VI –CALCULATION AND PAYMENT OF GST NET AMOUNT 27. Net amount of GST to be remitted in a tax period. PART VII –INPUT TAX CREDITS 28. Goods or services for which no input tax credits are allowable. 29. Input tax credits. 30. Acquisition or importation by resident agents. PART VIII–GST DOCUMENTATION GST invoices and sales receipts. GST credit and debit notes. Documentation issued by or to agents. Requests for GST documentation. Prohibition. Retention of records. PART IX–GST RETURNS AND PAYMENTS GST returns. Due date for payment of GST. GST payable on imports. Due date for payment of GST on imports. PART X –REFUNDS 41. Refunds. PART XI–ASSESSMENTS Assessments . Assessment of recipient. Negation of tax benefit from a scheme. General provisions relating to assessments. 31. 32. 33. 34. 35. 36. PART II–IMPOSITION OF GOODS AND SERVICES TAX 14. Imposition of GST. PART III –REGISTRATION Application for registration....
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...and Enron scandal in 2002. Unethical and illegal actions played a large role in the said scandal which in turn resulted in many people losing their investments in Enron and many employees being prosecuted by the criminal court system. One of the major responsibilities of a CPA is to remain and act ethical inside and outside of the business. Confidentiality is a major ethic hassle many CPAs have had a difficult time with. The information in a company is vital to the operations of the company. Leaking the vital information to the public or to the company’s competitors is an unethical action. When a CPA is hired by a company to review the financial statements of a company, which is their only job they must do. Preparing income tax refund papers, giving tax advice, or any other information to the management of the company is against the scope of practice what the CPA was hired for. When misstatements, errors, or misclassifications are found in the financial statements, the CPA is responsible for making note of the adjustments to be made and turn the information back to the company for correction. The CPA is not required to perform the error corrections due to it is the accountant’s job. Difference between a Review and an Audit A review is just a review of the...
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...programs updated the following simulation and evaluation guide to reflect the CICA Handbook standards, the Tax laws and the UFE Candidates Competency Map in effect as of March 31, 2011. Any changes to the original material are the sole responsibility of the consortium and have not been reviewed or endorsed by the CICA. The assumption was made that private companies will apply Accounting Standards for Private Enterprises (ASPE) and public companies International Financial Reporting Standards (IFRS)*. The assumption was also made that the accounting framework had been in place for several years. Dates in the simulation have not been changed. * Note: For the 2011 UFE, a candidate might be required to determine whether ASPE or IFRS is appropriate under the circumstances. © 2011 Institute of Chartered Accountants of Ontario Paper II - SIMULATION 3 (70 minutes) You, CA, have just been hired by Doctor Robert Blake (Doctor Bob) as a part-time accountant for his new clinic located in the province of Quebec. From your interview, you have learned that Doctor Bob moved to your city from another city within Quebec. Prior to that, he was studying medicine overseas. He arrived in Canada on February 28, 2006, and met all the requirements to practice medicine in the province. He has many questions about setting up his own medical practice, but is aware that according to provincial tax legislation he cannot incorporate his practice in Quebec. It is now February 1, 2007, and it’s your first day...
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...Goods and Services Tax 1 GOODS AND SERVICES TAX BILL 2014 ARRANGEMENT OF CLAUSES Part I PRELIMINARY Clause 1. Short title and commencement 2. Interpretation 3. Meaning of “business” 4. Meaning of “supply” Part II ADMINISTRATION 5. Director General and other officers and their responsibilities 6. Recognition of office 7. Public servants 8. Confidentiality of information Part III IMPOSITION AND SCOPE OF TAX 9. Imposition and scope of goods and services tax, etc. 10. Rate of tax 11. Time of supply 12. Place of supply 13. Supply of imported services 14. Place where supplier of services belongs 15. Value of supply of goods or services 16. Value of goods imported 17. Zero-rated supply 18. Exempt supply 2 Bill Part IV REGISTRATION Clause 19. Registration of taxable person 20. Liability to be registered 21. Notification of liability and registration 22. Cessation of liability to be registered 23. Direction to treat persons as a single taxable person 24. Voluntary registration 25. Notification of cessation of liability or voluntary registration 26. Cancellation of registration 27. Group registration 28. Registration of partnership 29. Registration of societies or similar organisation 30. Registration of branches or divisions 31. Personal representatives deemed to be taxable persons 32. Exemption from registration for persons making or intending to make zero-rated supply Part V ACCOUNTING, ASSESSMENT, RECOVERY, ETC. 33. Issuance of tax invoice 34. Production of tax invoices by computer...
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...Table of Contents Chapter 1 Taxation overview---------------------------------------------------------------- 1 2 General principles ---------------------------------------------------------------- 8 3 Specific principles on gross income------------------------------------------- 12 4 Pension receipts and payments------------------------------------------------- 22 5 Double Taxation------------------------------------------------------------------ 29 6 General deductions----------------------------------------------------------------34 7 Expenditure-------------------------------------------------------------------------38 8 Capital allowances-----------------------------------------------------------------48 9 Leasing------------------------------------------------------------------------------ 60 10 Exemptions------------------------------------------------------------------------- 66 11 Partnership-------------------------------------------------------------------------- 71 12 Farmers------------------------------------------------------------------------------ 76 13 Miners------------------------------------------------------------------------------- 85 14 Exports------------------------------------------------------------------------------ 98 15 Capital gains------------------------------------------------------------------------ 101 16 Hire purchase-----------------------------------------------------------------------...
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...Malaysia Income Tax Act 1967 Up to January 1, 2006 This document was downloaded from ASEAN Briefing (www.aseanbriefing.com) and was compiled by the tax experts at Dezan Shira & Associates (www.dezshira.com). Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. 053e .FM Page 1 Thursday, April 6, 2006 12:07 PM LAWS OF MALAYSIA REPRINT Act 53 INCOME TAX ACT 1967 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION , MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND PERCETAKAN NASIONAL MALAYSIA BHD 2006 053e .FM Page 2 Thursday, April 6, 2006 12:07 PM 2 INCOME TAX ACT 1967 First enacted … … … … … 1967 (Act No. 47 of 1967) Revised … … … … … 1971 (Act 53 w.e.f. 21 October 1971) … PREVIOUS REPRINTS First Reprint … … … … … 1980 Second Reprint … … … … 1993 Third Reprint … … … … … 2002 PREPARED FOR PUBLICATION BY MALAYAN LAW JOURNAL SDN BHD AND PRINTED BY PERCETAKAN NASIONAL MALAYSIA BERHAD KUALA LUMPUR BRANCH 2006 053e .FM Page 3 Thursday, April 6, 2006 12:07 PM 3 LAWS OF MALAYSIA Act 53 INCOME TAX ACT 1967 ARRANGEMENT...
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...Forms of Business Business Law/531 Forms of Business A sole proprietorship owner is liable for 100% of the business. This means that any debts of the business are also debts of the owner (Chesseman, 2010). This is a disadvantage for a sole propriety owner. Sole proprietor owner gets a tax break. The owner can file a single personal tax form. A sole proprietor is also subject to the least amount of government regulations of all business entities (Chesseman, 2010). When it comes to running this type of company, there are no legal formalities to forming or dissolving ones business. This is because there are no shareholders, investors or banks involved.When an owner of a sole proprietorship dies, the business dies with them ( Chesseman,2010). One can also convert one’s business into a partnership. In a partnership partners share profits and the losses together. Partners have shared responsibility with debts from business deals. Both partners are subject to financial liability if one partner is negligent.A partnership is exempt from double taxation. In a partnership owners can claim their portion of income generated through the business as personal income tax (Chesseman, 2010). When in a partnership, partners owe a contractual and fiduciary duty to one another (Chesseman, 2010). Partners have to trust one another because they have a fiduciary duty to each other. Partners should not borrow money, enter into secret contracts, or do anything illegal without other partners...
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