Tax Case Study

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

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

Thank you for coming to our offices and allowing us to review and discus your concerns regarding your tax questions. I have been assigned to reply to your questions and I have listed my recommendations below. After you both have reviewed these recommendations, please contact me so we can go over any additional questions you may have.

Preferred Consulting will install QuickBooks 2015 Pro software on your computer’s hard drive. Next, we will setup Cutting Edge as a sole proprietor organization that is engaged in service and product sales, so the software knows how to account for all the transactions and taxes your company may incur during the year. Then we will enter your customers, vendors, supplies, and inventory that your business uses to conduct daily operations. Every transaction your business performs will be entered using the appropriate section of QuickBooks Pro 2015, and the amounts are automatically distributed to the selected chart of accounts. The chart of accounts records every transaction that is entered and keeps running totals of revenues, expenses, equity, liabilities and inventory.

The U.S. Tax Court and the U.S. Court of Appeals for the Eleventh Circuit provide reversed decisions on whether the Packard family is eligible for the first-time homebuyer tax credit. This memo report evaluates courts’ decisions to determine which one is superior.

After the passage of the 16th Amendment, the nature and process of taxation changed many times. An author for the Virginia Law Review wrote in 1972, “Developing and maintaining an appropriate tax structure for a nation as economically complex and dynamic as the United States is a mammoth task” (Graetz, p. 1401). Because of this complexity, the nature of the Tax Code would need to be altered to keep up with what the country requires at a given time. Several significant changes have been made to the Tax Code, but none more significant than the passage of the Tax Reform Act of 1986 (TRA 86). TRA 86 was one of the most polarizing changes in tax law and where the current Code gets its name (Spilker et all., 2016, p. 2-11). It brought about more revisions than most people and businesses could keep up with, and it brought to light the deficiencies in implementing amendments to the Code, namely a disturbing lack of awareness from taxpayers of the alterations. Many businesses benefited from the changes—mostly large, well-established firms, but small mom-and-pop stores who have less stake in tax planning suffered (Scholes, Wilson, Wolfson, 1992, p.181). This negative effect would have been avoided if taxpayers had taken precautions and been aware of the impending changes in tax laws and if those changes had been communicated clearly to them.

On December 1st, 2017 the Senate passed the most sweeping tax rewrite in decades. Republicans were lining up to approve the bill that will cover almost every corner of the United States economy, affecting families, small business owners and multinational corporations, with the biggest benefits flowing to the highest-earning Americans. Parts of these bills include the Child Tax Credit, the 529 Plan, Blocking Arctic Drilling, and Remove Endowment Tax Exemption.

With the presidential elections coming up, different tax policies are being debated between the candidates. Whether it is proposed by a Democratic or a Republican presidential candidate, there have been many possible solutions presented on how to reform the current tax code. Focusing specifically on four candidates, two from the Democratic Party, and two from the Republican Party, I will compare and contrast their respective tax proposals. While the Democratic candidates generally agree with President Obama’s current tax code, all four candidates are looking to reform it in some way in order to, in their own eyes, better the current tax code affecting today’s citizens.

The alternative minimum tax (AMT) was created to prevent high income level individuals from using deductions and credits to avoid paying federal income taxes (Tritz, 2015). Due to inflation AMT now spreads to include more individuals beyond the highest-income taxpayers and straying from its original objective. Consequently, AMT has affected the economy by over-complicating the already complex tax code, creating an additional obligation for taxpayers, and burdening more taxpayers than its original intention. This relates to our course content, which includes the calculation of AMT, the differences between AMT and TMT, the differences between AMT and the regular tax rate, and disallowance rules under AMT.

Customers value their time and money and are seeking a fast yet affordable method of having their taxes prepared.

Because Reggie is considered to be Hamish’s qualifying relative (and a qualifying person for purposes of the head of household filing status), Hamish may also claim a dependency exemption for Reggie.

You should know what to look for in a tax filing software before you jump into one.

The largest and most talked about point among Americans is the tax bracket changes. This is what many relate to the tax savings. The House of Representatives have agreed to the plan that would decrease the number of tax brackets from seven to four. The rates would include 12, 25, 35, and 39.6 percent. Those who

The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose

taxes but it is reassuring to know that I could do my own if I wanted to.