...Tax Return Position Minh Saldana ACC/455 Professor Monica Walker August 20, 2012 * The objectives used for legal study are ordinarily included two substantial parts - primary sources and secondary sources. The primary sources are declarations of the enactment from the government such as, an executive agency, legislature, court, governor, or 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...
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...Tax Return Problem 1 (TRP 1) Corporate Tax Return Information The Snap-It-Open Corporation incorporated and began operations on January 15, 2002. Its address is 3701 Commerce Drive, Baltimore, MD 23239. Its employer identification number is 69-7414447. It elects to file its initial tax return for 2002 as a calendar-year corporation and uses the accrual method of accounting. It elects the LIFO method of inventory valuation. Jason Sprull (SSN 333-33-3333) and Martin Winsock (SSN 555-55-5555) formed the business. They each contributed $250,000 cash for 50 percent of the 100,000 shares of $1 par value stock issued and outstanding. The company was formed to assemble and market a unique, compact, snap-open umbrella and its business activity code is 339900. These umbrellas are sold to a variety of organizations as premiums. The company purchases the umbrella frames and several types of waterproof fabric for the umbrella material and covers from various manufacturers. It prints the organizations’ advertising logos or other designs on the umbrella material and covers and then assembles these on the umbrella frames for delivery to the customer. On January 16, the company began using two machines for printing and cutting the fabric for the umbrellas that they had purchased for $250,000 each and two used umbrella assembly machines purchased for $200,000 each. The company obtained a bank loan of $750,000 secured by the machines. Jason and Martin were required to personally...
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...Return 1 Harold and Sarah’s Federal Return Carla Sroufe ACC401 Christine Errico October 15, 2012 Return 2 Harold and Sarah’s Federal Return To complete Harold and Sarah’s Federal tax return, Form 1040 was the form that was chosen when using Tax Act CD. Form 1040 or 1040A are the forms that are required when itemizing deductions. The Petersan’s have many deductions that may help them reduce the tax they owe. I used Schedule A to report the sale of the house, medical expenses, and the mortgage interest. The medical expenses are the medical insurance that both Sarah and Harold had contributed through payroll payments. They both contributed $1,347 which equals $2,694. The real estate taxes are the taxes paid on the property for the year which was $1,500. The mortgage interest was also reported on Schedule A in the amount of $14,400. The total for Schedule A on line 40 is $18,014. The adjusted AGI for Harold and Sarah is $90,916. After subtracting the itemized deductions, the amount is $72,902. I used Form 2441 to configure the Child and Dependent Care expenses. This form helped to configure how much the Petersan’s can report for child care expenses. The maximum amount that can be considered out of the $10,320 is $3,000 for a qualified dependent. With consideration of the AGI, the decimal amount .20 was used to determine the amount that is allowable for the child care expenses. The total amount that the Petersan’s can report is $3,000 multiplied...
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...ACA1 Task 2 Write an essay in which you recommend the most advantageous tax filing status for Spouse A and Spouse B on their federal tax return. The filing statuses available to the taxpayer couple are married filing jointly, and married filing separately. The best filing status for Spouse A and B is married; filing jointly. Both spouse A and B have separate income for the year and so could file separate returns but they would also have to file at a higher tax rate schedule because their income is not combined. They would be required to claim any exemptions, deductions, and credits available separately. The couple is also precluded from filing a dependent twice so if A were to file for one of their 3 dependents then B could not claim the same dependent. The couple will qualify for 5 exemptions if filing together: 1 for spouse A, 1 for spouse B, 2 for the minor children, and 1 for the student adult child. Spouse B’s mother (whom lives with the couple) receives social security benefits in the amount of $750 per month she contributes all but $90 a month to the household. Since this amounts to $7920 and the couple contributed $7000 to the mother, they provided less than half of her support and so cannot claim her as an exemption. (Hoffman, et al, 2011). When addressing taxable and non-taxable income, it is mandatory that all income be reported on the return but only the portions subject to tax will be tax assessed. Spouse A has a K-1 from the partnership which shows $142,000 of...
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...University of Phoenix Material Tax Return Worksheet Directions Review Gloria Ramsay’s tax return. Answer the following questions based on the information listed in her return. 1. Even though Gloria is single, her filing status is Head of Household. Why is Gloria able to file as head of household? Because she has a child that lives with her and she pays more than half of the support for this child. 2. How does Gloria benefit from filing as head of household, rather than single? She will more of a standard deduction as head of house than she would filing as single. 3. What is Gloria’s adjusted gross income? In which line in the tax form did you find her total income? $22,275 4. Even though Gloria is filing the short form (1040A), she is still able to get two credits. What are the two credits Gloria receives? List the line you found the answers on as well. Child care tax credit- line 29 and Additional child tax credit- line 41. 5. How much of a refund is Gloria going to receive? $2,500 6. What are the four steps listed in the filing checklist? Sing and date the return Assemble the return Mail the return Keep a copy of the return 7. On the Wage and Tax statement, list how much Gloria paid in her Federal Tax Withholding? She paid $1,500 in federal tax withholding. 8. How much did she pay in Social Security and Medicare? Social Security $1,395 Medicare $326 9. If she had owed money but was not able to pay it...
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...TAX RETURN No. 1 –Part II Spring, 2013 Henry and Helen Cummings are married and they live in Geneseo, N.Y. Henry is 37 and Helen is 34. They have two children, Robert and Mary. Robert is 6 years old and Mary is 4 years old, and neither has any income and both children qualify as their parent’s dependents. Helen is a licensed physical therapist. Henry is a manager for Baker Corporation, which is located in Rochester, New York. In February 2012, the Cummings provided you with the following information for preparing their 2012 federal income tax return: 1. The Cummings use the cash method of accounting and file their return on a calendar-year basis. 2. On May 15, 2012, Helen received $25,000 as a gift from her Aunt Mary. 3. The couple has a total amount of interest income for 2012 of $5000, of which $2,000 is interest from a savings account at ABC Bank, and $3,000 is interest on NY state bonds. 4. Henry’s salary is $50,000, and Helen’s is $70,000. 5. Helen paid $4,000 in alimony to a former spouse, Ben Johnson. Alimony is a deduction FOR AGI. 6. They had a total of $ 14,000 federal income tax withheld, of which $5,000 was withheld from Henry’s paycheck and $9,000 was withheld from Helen’s paycheck. 7. They contributed $1,500 to qualifying charitable organizations during 2012. This charitable contribution and their New York income tax withholding amounts, which together totaled $6,000, are the only amounts that would qualify as itemized deductions...
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...Error Report For Lori Corp: o 1120 Warning: This Corporation should file forms for Tax Year 2011. o 1120 Error: The Business activity code no. is not valid; must be between 111100 and 813000 OR if applicable, enter "Inactive". o 1120 Warning: Determine whether the IRS may discuss this return with the preparer and select appropriate response box. o 1120 Warning: The amount entered as buildings and other depreciable assets at the end of tax year on Sch L does not equal the amount from Form 4562. o 1120 Warning: The amount entered as accumulated depreciation at the end of tax year on Sch L does not equal the amount from Form 4562. o 1120 Warning: The end-of-year unappropriated retained earnings reported on Sch L should equal the amount reported on Sch M-2. o 1120 Warning: The Corporation qualifies as a small corporation or is otherwise exempt from the alternative minimum tax. o 1120 Informational: Either the Yes or the No box should be checked. Override and Estimate Report For Lori Corp: o No results were found. Please review your return carefully. 2010 Tax Summary (1120) Federal Information Lori Corp 13-1928472 Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... Total Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . $430,900. . . . ....
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...Form Department of the Treasury - Internal Revenue Service 1040A Your first name and initial U.S. Individual Income Tax Return Last name (99) 2013 IRS Use Only - Do not write or staple in this space. OMB No. 1545-0074 Your social security number Robert If a joint return, spouse's first name and initial Greene Last name 412-34-5670 Spouse's social security number Vilma 1001 N.W. 93 Street Greene Apt. no. 412-34-5671 Make sure the SSN(s) above and on line 6c are correct. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. Home address (number and street). If you have a P.O. box, see instructions. City, town or post office, state and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Miami, FL 33168 Foreign country name Foreign province/state/county Foreign postal code X You X Spouse Filing status Check only one box. 1 2 3 6a X X X Exemptions b If more than six dependents, see Instructions. 4 Single Head of household (with qualifying person). (See instr.) If the qualifying person is a child but not your dependent, Married filing jointly (even if only one had income) enter this child's name here. Married filing separately. Enter spouse's SSN above and 5 full name here. Qualifying widow(er) with dependent child (see instructions) Boxes Yourself. If...
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...Sample Table ! At But Least Less Than Single 25,200 25,250 25,300 25,350 3,330 3,338 3,345 3,353 25,250 25,300 25,350 25,400 Married Married Head of a filing filing housejointly* sepahold rately Your tax is— 2,876 3,330 2,884 3,338 2,891 3,345 2,899 3,353 D R AF T CAUTION 3,136 3,144 3,151 3,159 T AF R D T AF R D T AF R D T AF R D T AF R D T AF R D T AF R D T AF R D T AF R D T AF R D T AF R D And your filing status is— If the amount you are looking up from the worksheet is— Single, head of household, or qualifying widow(er) and the number of children you have is— 0 But less than 2,400 2,450 2,450 2,500 1 2 AF D R 3 Your credit is— 186 189 825 842 970 990 T At least 1,091 1,114 T AF D R T AF D R children, your credit is $2. children, you cannot take the credit. T AF D R children, your credit is $1. children, you cannot take the credit. T AF D R T AF D R cannot take the credit. T AF D R cannot take the credit. cannot take the credit. T AF D R * *If the amount you are looking up from the worksheet is at least $46,950 but less than $46,997, and you have three qualifying children, your credit is $5. If the amount you are looking up from the worksheet...
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...Introduction: H&R Block (H&R) is a leading company in tax preparation industry. Risk management is very important in the competitive tax service industry. The purpose of this report is to analyze H&R's macro- environment using STEEP model and identify the potential threats. Social: According to statistic Canada, the death rate will be over birth rate in the following years. Less population will results in less requirements to file tax return. Another factor which can't be ignored is immigration. Statistic Canada predicted that before year 2056, immigrant will be the main source of annually 1% population growth. This will create a demand for bi-lingual employee who can speak the immigrants' native language. Also, the components of the immigration is very important. For example, the company needs to train staff regarding foreign income in an area with a lot of investment immigrants. Re-target market segment is very important for H&R, especially in a city like Toronto. Technological: During the recent years various software make DIY tax filing very convenient and less expensive. To compete with this, H&R developed their own software and put them on the market. After years of development, "block at home" is one of the leading software on the market. But with more and more free software emerging, H&R block still face severe competence. To maintain their tradition tax service competitive advantage, H&R guaranteed that company will reimburse the penalty and interest from CRA...
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...Performance Management at Perelson Weiner LLP1 Jan Bell Babson College Alfred J. Nanni, Jr Babson College Introduction and entrepreneurs. (See Exhibit 3 for a description of PW’s business.) PW’s business development is relationship-based; the firm doesn’t advertise for business. Instead, personnel develop long-term relationships with clients. These relationships typically start with tax return or financial statement preparation and then grow to include services that provide value to the client in other ways. Weiner explains his client focus this way: “We don’t seek short-term transactional services; we want to spend our time developing client relationships that last 40 years rather than seeking one-time opportunities.” To ensure that clients receive value from PW’s services, Weiner insists that personnel have unique expertise before offering services to clients. PW’s expertise and its ability to add unique value lie in providing traditional tax preparation, accounting, and auditing services, which are then enhanced by meaningful proactive business and tax consulting advice. Weiner has made a strategic decision to focus on these sources of client value plus one other sort of advice. With a New York City location, Weiner feels that PW can also add value for its clients by assisting them in the selection of the best specialized professional service firms in other areas. For example, PW personnel help clients find the best asset management firms and...
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...under section 114 of the Act as well as for making an incorrect return under section 113 of the Act. The managing director appears to be liable for prosecution for assisting Shiny Parts Sdn Bhd in wilful evasion under section 114 of the Act as well as for making an incorrect return on behalf of Shiny Parts Sdn Bhd under section 113 of the Act. Mr. Leong may also be liable for prosecution for assisting Shiny Parts Sdn Bhd in wilful evasion under section 114 of the Act. He did act correctly and in good faith by pointing out to the managing director that not all entertainment expenses were fully deductible and that would normally excuse him from any liability. However, he should also have advised the managing director to make a written disclosure and justify his stand. Taking a different position or stand from a public ruling is a situation in which a written disclosure is required by paragraph 3.5 of Public Ruling No. 8/2000. This omission might prejudice his immunity from prosecution. Section 113. Incorrect returns. (1) Any person who- (a) makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return on behalf of himself or another person; or (b) gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person, shall, unless he satisfies the court that the incorrect return or incorrect information was made or given in good faith, be...
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...Information (PII) return from WHAT? I became involved when my manager, Sylvia Mincy approached me with the document in question. She wanted to know what would I have done had I received this document in the raw work. I performed the following steps: o I first looked at the return and deduced that it came up for either error code 002 or error code 004. Because, these two error codes are very similar in resolution I concentrated on Error Code 002. o Secondly, I saw that there was a digit missing from the EIN, so I could not verify anything using the EIN, I would have to use the name line . o Next, I used command code NAMEB and saw an EIN of 20-123456 that the EIN the taxpayer had on the return (22-012345). Using the information on the return and common sense, I concluded that the taxpayer’s EIN was off by two digits compared to what I found in NAMEB. First, a discussion was held involving all subject matter experts (SMEs), leads, Sylvia Mincy (ICO Quality Manager), and Karen Everson ( ). This was primarily a brainstorming session to determine: 1. Are the tax examiners using their research skills to the fullest extent?, 2. Are they even aware of the research capabilities they have available to them?, 3. Do we need to come up with local procedures regarding research?, Do we need to teach research either as a separate class or in conjunction with the class of the form being taught? Beginning on June 8th, 2009 we began reviewing all 1041 returns that were suspended...
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...Bubba and Rufus Question 1 September 23, 2013 Question 1: What are the ethical responsibilities of a CPA who performs tax returns? A CPA who is preparing a tax return has the ethical responsibility to follow Statements on Standards for the Tax Service No.1, as well as Interpretation 1-1. A CPA must take due care when handling a client engagement and is required to report the return in a way that he/she believes the transactions have been documented properly. Question 2: Discuss the ethical and professional obligations violated by Bubba with respect to his professional services for Rufus. In this scenario Rufus has shown poor judgment, not only within his initial services (tax preparation) but also in his newly offered service (common-law trust). These lapses in judgment will not only ruin his reputation professionally but also from an ethical standpoint. He may also face jail time, assuming he can be found. To be more detailed, Rufus has: 1) Failed to take due care, in both services 2) Appears to have failed to maintain objectivity and independence 3) Appears to have lied to increase personal gains 4) Misappropriated funds by deceiving clients Pizza Hut Case Justification of tax position September 23, 2013 Question: Could I have justified the position taken on the tax return from an ethical standpoint? Explain… First, the 7th district court asserts that C&F failed to claim why it voluntarily treated some of the money received...
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...Contents Phase 1: Design Concepts 2 Project Description 2 Use Cases 3 Data Dictionary 4 High Level Design Components 5 Detailed Design: Checkout 7 Diagrams 7 Design Analysis 8 Detailed Design: Product Research 9 Diagrams 9 Design – Using Pseudocode 10 Product Profit 10 Phase 2: Sequential Logic Structures 11 Design 11 Product Profit 11 Phase 3: Problem Solving with Decisions 12 Safe Discount 12 Return Customer Bonus 13 Applying Discounts 14 Phase 4: Problem Solving with Loops 15 Total order 15 Problems to Solve 16 Calculate Profits 16 Rock, Paper, Scissors 18 Number Guessing Game 20 Phase 5: Using Abstractions in Design 22 Seeing Abstractions 22 Refactoring 22 Phase 1: Design Concepts Project Description Although we may be late to the game, we will nevertheless join the world of e-commerce to sell our fantastic product on the Internet. To do so, we need a Web site that will allow for commerce and sales. To be quick about it, we require the following: * Searchable inventory and shopping pages * A shopping cart * A place for customers to register when they make purchases * A checkout process to make the purchase Within this main process, there are a bunch of other needs that must be met, as follows: * We want to track the date of the last purchase a customer make so we can offer incentives and discounts based on the last time they shopped. * We will offer sales based on the number of different items that a person purchases. * We...
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