The Tax Research Process

First of all, both options for this discussion are very interesting but I chose option number one to study and analyze because I am always curious about taxation. I always ask myself out of curiosity about why there are differences in tax implementation and system in America specifically in each State? For me to better understand this topic, I have researched about the terminologies, the process and the ideas that go along with this subject matter.

2. Which two statements describe how taxes influence decisions made when filing a return for an individual taxpayer?

Topic Revenue neutrality Controlling the economy Encouraging industries Research and development expenditures Social considerations Earned income credit Charitable contributions Fines and penalties Home ownership Higher education incentives Tax credit versus deduction Alleviating the effect of multiple taxation Double taxation and effect of a credit versus a deduction Wherewithal to pay concept: transfer to

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.

After reviewing John and Jane Smith’s points of view, it will be your turn as a tax professional to decide on the best course of action from a tax

Part III: Discuss the tax consequences of contributing cash, property, and/or services to the new entity.

Please describe the concept of “double taxation” and discuss which entity(ies) are subject to this type of taxation. (5 pts)

Instructions: You should prepare a legal memorandum to your client providing tax advice on the proposal set forth here. Be sure to include citations to code sections, regulations and other authorities that you rely upon in reaching your conclusion. The paper generally runs about two to three pages and is due the last day of class or May 10, 2011..

Simkovic, Michael. (Fall 2015). The Knowledge Tax. The University of Chicago Law Review. Vol. 82.4. 1981-2043.

1. Determine a taxpayer’s regular tax liability and identify tax issues associated with the process.

Since deciding to attend law school, I have sought a position at a large company where I could utilize my education and work ethic to build a career. Additionally, I have looked for an environment that would allow me to continue to develop both personally and professionally. In working as an attorney for the past two years, I have found a great interest in the field of taxation. Though approaching taxation from a legal perspective has exposed me to a variety of tax issues, I have realized that my interest lies in the numbers behind the taxes.

Revenue generated through tax receipts ideally should exceed annual costs on various government operations. Moreover, the economic considerations involving amendment of Internal Revenue Codes for various depreciation deductions for purchase of business property and research/development deductions credits1. The second consideration, referred to, as social consideration give tax benefits to the employers encouraging health insurance and deduction for charitable contributions by employees as well as private companies. The equity considerations enable individuals or corporations to avoid the effect of double taxation on their taxable income. This could be necessarily ensured by deducting state and local taxes from Gross Income. The credit or deduction for certain foreign taxes and deductions for dividend received by corporations to avoid triple taxation. The

Fourth, use of the vague phrase “tax advice”, coupled with the lack of any statutory definition of such phrase leads to disputes between parties as to what constitutes “tax advice.” Case law is replete with examples of parties claiming communications contained “tax advice” merely because tax issues were discussed. If courts have interpreted “tax advice” to be a narrow definition, the statute should be amended to avoid further

Tax policy: I will need to look at certain levels of tax. If tax is

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.