meet with you last week. This memo is in regard to your concerns that you mentioned during our meeting and my recommendation for each one. Please review this memo and call me if you have any questions. 1) John Smith tax issues: a. How is the $300,000 treated for Purposes of Federal Tax income? Gross income means” all income from whatever source derived, including (but not limited to the following items: Compensation for services, including fees, commissions, fringe benefits, and similar items…..”
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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
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proprietorship is the most common form of business and has been around for many years. It is the simplest form of business because it is owned and operated by an individual. Some advantages to choosing a sole proprietorship would be minimal state and federal regulations, which make it easy to control and manage. Another is the cost to start a Sole Proprietorship is minimal. It is a good form of business for someone who is starting out small. In many cases this type of business can be operated out of the
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partnership (LLP). Because each business form comes with different tax consequences, you will want to make your selection wisely and choose the structure that most closely matches your business's needs. If you decide to start your business as a sole proprietorship but later decide to take on partners, you can reorganize as a partnership or other entity. If you do this, be sure you notify the IRS as well as your state tax agency. Sole Proprietorship The simplest structure is the sole proprietorship
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Sometimes the economy needs a push in the right direction to get to a better level of equilibrium. This can be done through fiscal and monetary policies, implemented by our government. According to the Federal Reserve, “Fiscal policy is a broad term used to refer to the tax and spending policies of the federal government” (Federalreserve.gov n.d.). Decisions regarding fiscal policy are determined by Congress and the presidential administration. “Monetary policy is a term used to refer to the actions of
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3 711 Chapter Tax Accounting TRUE-FALSE QUESTIONSCHAPTER 13 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. A partnership may adopt any tax year without IRS permission. A corporation ling its rst return must annualize its income if the tax period is less than 12 months. A taxable year may be as short as one day and may exceed 366 days. Under no circumstances may a corporation change its scal year without IRS permission. A taxpayer engaged in two or more separate and distinct businesses
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line of creditors. A sole proprietor could get wiped out with one large personal lawsuit and lose everything. Income taxes: Taxes for the business are processed as the owner's personal business, which is usually higher compared to other business tax rates. Longevity: This is based on initial work done by the owner when the business is started. It can depend on how the owner finances the business. Typical funding for this type of business is just a personal loan. Control: Owner is 100% in control
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Handout 1 — LOL Draft Income Statement and Excerpt From Tax Footnote as of December 31, 2010 |LOL Corporation | |CONSOLIDATED STATEMENT OF OPERATIONS | |Years ended December 31, 2010, 2009, and 2008 | |(in thousands)
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Kiera Peavy Government 2305 5/29/14 Income Inequality Timothy Noah Richard A. Epstein * Inequality is good. (253) * Welch began by stating that “all economics results from inequality. Without inequality of priorities and capabilities, there would no trade, no specialization, and no surpluses produced by cooperation.” (253) * Waitresses, construction workers, dental assistants, call-center operators--- people in these jobs are essentially replaceable, and usually have bosses
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Withholding tax Withholding tax is tax deducted at source from income earned by a taxpayer on a qualifying transactions, investment or income stream. It is designed to capture tax and information on transactions to prevent tax evasion. Relevant Tax laws 1) Companies Income Tax Act 2) Personal Income Tax Act 3) Tax regulations introduced from time to time by minister of finance: (a). S.I. of 1997 – personal income tax [rates, etc. of tax deducted at source (withholding tax ) regulations]
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