The Adequacy Of The Current Deterrence Model Of Tax Compliance

When it comes to taxes, people often make mistakes which are quite normal. However, when these mistakes lead the IRS to perform audits of your business or personal assets, repaying them can be a burden. While it is required by the IRS that you pay your taxes in full, circumstances may prevent you from doing so, but if your taxes aren’t paid in full the IRS will charge a penalty. No need to worry, however, because there are different ways for you to resolve this issue. To learn how to resolve your tax debt, read the guide below and begin paying the IRS the money you owe Uncle Sam.

The Court ruled in favor of the appellant, and the decision is described as follows:

2- If Jonathan ultimately doesn’t agree with the finding of the IRS, what are his options?

According to the journal article, the concept of deterrence is simple; it is the omission of a criminal act because of the fear of sanctions or punishments. Deterrence is an important foundation of the criminal justice system. Law enforcement is there to apprehend those that break the law, and to convince the public that there is a risk of apprehension and punishment if they commit a crime. Laws provide a host of different sanctions for the commission of offenses such as: fines, probation, imprisonment, mandatory minimum sentences, the “three strikes” law, and others are all enacted with the expatiation that sanction threats can deter crime is at the heart of the criminal Justice system. According to the journal article, there is an abundance of research about specific police, judicial, and correctional policies, as well as a more general theoretical work about deterrence mechanism, with the evidence to date, it is still flimsy.

Located in Washington DC, the Internal Revenue Service (IRS), is the enforcer of laws, especially tax related. The roots of the IRS go back to Civil War times when president Lincoln passed the Revenue Act of 1862. The IRS is a government division of and also controlled by the Department of the Treasury. Besides enforcing tax laws, the IRS is also accountable for the collection of taxes. These types of taxes include gift, corporate, excise, and estate. They are also an important factor in the attainment of money for the government. For the fiscal year, which is a period used for accounting purposes, of 2014, the combined returns of personal and corporate income tax of 149.7 million brought the government almost $2 trillion of

Everyone can relate to breaking the rules in one form or another. It seems to be human nature to do what one knows is wrong, and this is evident for people of all ages, beginning with children as young as two years old and extending throughout adulthood and into a person’s last days on earth. Whether it is as extreme as violating the law or simply not following instructions, misbehaving is an everyday thing. Usually when somebody is violating certain rules, they are fully aware of their actions. They are also fully aware of the potential consequences that could result from getting caught, yet they do it anyway. One of the main goals of punishment is deterrence. Deterrence is defined as a theory that the fear of punishment will discourage individuals from committing criminal acts. However, as it will be revealed throughout this article, deterrence is somewhat unrealistic because it is impossible to convict and punish everybody who has committed a moral or legal violation.

A conference relating to this appeal from the findings of the examining agent is requested

Every statute which takes away or impairs rights acquired under existing laws, or creates a new obligation or imposes a new duty, or attaches a new disability in respect of transactions already passed , must be presumed to be intended not to have a retrospective effect. Yet, there had been many tax amendments in the Finance Act from time to time with retrospective effect, some of which had come into effect from as far as 1976. Though, for the better part, they were designed to deal with some court verdict which upset the existing law or the existing understanding of law.

Taxes are a compulsory contribution to the state revenue, levied by the government on workers’ income and business profits or added to the cost of goods, services and transactions. In the United States, nearly everyone is taxed, and it is the taxpayer’s duty to report all income to the IRS. The IRS is the International Revenue Service of the United States federal government; it is responsible for the collection of taxes and enforcement of tax law. Some people try to avoid paying taxes by failing to report some or even all of their income which is an illegal thing to do. Failure to report all or a portion of your income can result in a number of penalties and even jail time. Everyone has to pay taxes and some, such as the wealthy ought to

Sept 1, 2005 appeal by Cooper about Lion offer that does not explain the preemptive right. Panel ask Lion to make a join letter to explain the preemptive right

That has prompted the search for alternative models that may better capture the complexity of tax compliant behavior (Alm, 1999). Theoretical concerns focused on the role of norms in explaining tax compliance behavior or attitudes about complying with taxes (e.g. Cullings and Lewis 1997, Schnellenbach 2006) Taxpayers may have an intrinsic motivation to comply with taxes which was termed Tax Morale (Torgler 2003b, 2006) which is shaped by individual and institutional norms (Torgler, 2003b). Unlike the traditional model of tax evasion, taxpayers’ rationality is assumed as limited; norms act as devices helping individuals to make their own tax compliance decisions (Torgler, 2003b) Although limited by the still developing links between tax compliance attitudes and tax compliant behavior (Halla, 2010) empirical results show plausibly Tax Morale may influence taxpayer behavior as it appears correlated with the size of the underground economy (Alm and Torgler 2006, Torgler and Schneider 2007).

Taxing authorities globally are discovering that traditional compliance enforcement methods of detection and deterrence while necessary, are deficient for overcoming

Milos (2013) research shows an increased on income tax evasion, social insurance and value-added tax evasion from 7.3% in 2004 to 10.3% in 2010, of which Bulgaria came first 32.3%, while Romania came second 29.6%, then Lithuania 29%, and Estonia 28.8% are the top four countries with highest tax evasion (pp.167-168). Milos econometric studies of the economic growth and tax evasion level identified no relation and invalidated the perception according to the increase in economic growth, as well as the increase in tax evasion, where in reality, a reduction of tax evasion would have result to positive economic growth (p.168). Milos explained that this is more likely due to the fact that taxation is not the primary element in the determination of economic growth (p.168).

Subtle coercion is also carried out through the tax administration’s innovations. These innovations supposedly make the lives of Singaporeans easier by aiding them in paying taxes. However it is but a means of manipulating them into paying their taxes to achieve higher compliance. E-filing, or online taxpaying, was introduced to enable taxpayers to file their taxes online, and has seen much success in acquiring tax compliance, with 96% of taxpayers e-filing (IRAS, 2007). Taxpaying is made so convenient that taxpayers do

This chapter provides background information regarding tax compliance by SMEs in Zimbabwe. The topics covered in the chapter include background of the study, statement of the problem, the objectives of the study, main research question, sub research questions and justification of the study. Other sub-topics covered include significance of the study, delimitations, and limitations of the study and definition of terms.