Questions On Gross Receipts Tax

The validity of the tax here is related to the benefit Δ receives from access

Hoffman, W., Maloney, D., Raabe, W., & Young, J. (2013). Federal Taxation Comprehensive Volume. (36 ed.). Ohio: South-W

The Tax Court, per Judge Ruwe, issued an order on May 8, 1995, denying Pope & Talbot 's motion and granting the IRS 's motion. The court 's opinion characterized the issue before it as one of "first impression," and found resort to the legislative history of the statute necessary since the court was unable to "achieve...certainty based on the language of the statute." After reviewing the legislative history of IRC Sec. 311, the court observed the following: It is apparent that the purpose underlying IRC Sec. 311(d) was to tax the appreciation in value that occurred while the corporation held the property and to prevent a corporation from avoiding tax on the inherent gain by distributing such property to its shareholders...It follows that we must focus on the value of the Washington properties as owned by petitioner and value them as if petitioner had sold them at fair market value at the time of distribution.

Nothing is included in Decedent’s gross income, because under section 2035(d), Subsection (a) and paragraph (1) of subsection (c) shall not apply to any bona fide sale for an adequate and full consideration in money or money’s worth.

According to the IRC §61(a)(1), “Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the

§ 1.61-1(a) - GI means all income from whatever source derived, unless excluded by law. GI includes income realized in any form, whether in money, property or services.

Since its inception, AMT has expanded to reach more taxpayers than whom it was originally intended. Initially, AMT was mandated for a small percentage of taxpayers to prevent them from taking advantage of itemized deductions (Tritz, 2015). However, due to the disallowance of typical tax deductions, such as personal exemptions and the standard deduction, many more people are subject to

It does not exempt sales made on the Internet from taxation, as these may be taxed at the same state and local sales tax rate as non-Internet sales, just like mail order sales. The Act did not repeal any state sales or use tax. It has been thrice extended by the United States Congress since its original enactment. " ("Internet tax freedom," 2011)

Duties on imported goods such as alcoholic beverages, motor vehicles, cigarettes, and gasoline and oil continue to be major sources of government incomeIndividual

States that are party to reciprocity agreements generally do not experience any loss of revenue due to these agreements. Moreover, taking in to account factors like non-residents employed in a given state, its tax rate and income level of tax payers, the revenue that is taxable is generally more or less the same between the states. Usually reciprocity agreements only refer to compensation such as wages, salaries, tips, commissions and bonuses that taxpayer may receive for his professional and personal services. In some cases, individual states may designate that certain income, for example lottery winnings, may not be come under reciprocal agreements.

c) Tax Rate: Use of a tax rate derived from the summation of state and statutory taxes instead of the firm's marginal tax rate

The businesses among the process of production, collect the taxes from the products they sold and it is then given to the government. Therefore, it is a general consumption tax because the tax ultimately falls on the final consumer. VAT is also referred as an indirect tax because it is collected by the government from the seller (the businesses) and not the final consumer who pays the tax. This process of adding a tax in each stage of production differentiates itself from a sales tax (Anastakis, N.D.). Dimitry Anastakis, demonstrated this difference where he gives the following example, “if a sales tax of 10 percent is applied to a desk worth $1,000, then the end customer buying the desk from a desk retailer would pay $100 in sales tax and $1,000 to the desk retailer” (N.D.). Therefore, all others involved in each step of production of the desk would pay no tax only the consumer. Further, Anastakis states, “If a VAT of 10 percent is applied to the same desk, the end customer will pay $100 in VAT. If the desk builder has purchased wood and supplies for the desk totaling $400, he/she is thus assessing $600 of value that he/she has added in creating the desk. The desk builder would pay the 10 percent VAT of $40 on the supplies. When he/she remits payment of the VAT to the government, he/ she will remit the total VAT assessed on the end value of the desk ($100) minus what he/she has already paid ($40), to total $60 based on the added value” (N.D.).

One of the most evident and thought provoking aspects that we see as consumers on a daily basis is the effect of sales tax. The effect of sales tax vary from the examination of how much this tax can increase our purchases. To why there are higher and lower tax percentages based on different purchases. Knowing that this tax is in place determines the actions of both sellers and consumers. With sales tax continuing to evolve and change certain bills such as the Remote Transaction Parity Act of 2015 have been put into place and action.

In a series of opinions, the Supreme Court has ruled that states cannot compel firms without a substantial nexus" within the taxing state to collect and remit use taxes. The most important cases are National Bellas Hess, Inc. v. Department of Revenue of Ill. and Quill Corp. North Dakota. "Substantial nexus" has been interpreted to mean a physical presence, and precludes states from requiring vendors whose only connection to the state is by mail, phone, or Internet to remit taxes. In their 1992 decision in Quill, the court ruled that requiring out-of-state vendors to collect the use

Recently, the tax treatment of Internet commerce has generated considerable attention. Sales and use taxes account for more than 30 percent of state tax revenues. Sales tax authority can only require a business