U.s. Federal Tax Law

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

The issues of taxation

The tax system was created as a way for the government to raise revenue and provide services on the behalf of those who pay those taxes. The burden of the level of taxes paid by the citizen seems to continue to increase, but the purpose of tax exemptions, according to the Louisiana Budget Project, is to encourage certain activities-such as economic development, the hiring and training of the unemployed, and the development of low-income housing. The

Under I.R.C. Section 7701(b), an individual is considered a US resident for tax purposes if they are physically present in the US on at least 1) 31 days during the current year, and 2) 183 days during the three year period that includes the two years immediately before that, counting, all days of current year, 1/3 of days in first year before the current year, and 1/6 of days in the second year before the current year (Substantial Presence Test, 2013). Because Mr. Murray was physically in the US from June through December 2012, 210 days, he is considered a US resident under the substantial presence test for income tax purposes for the year 2012. All his income of $65,000 would be reported on Form 1040 and be taxed as if he was a United States resident.

An amount equal to 90% of the tax for the taxable year calculated by annualizing the taxable income received for the months in the taxable year ending before the month which the installment is required

In my opinion as to whether or not the current federal income tax structure is fair for most Americans is that it is not fair. The following information will provide support for my decision. The main federal tax brackets are for single individuals, married individuals filing separately, married individuals filing as a couple and individuals filing as a head of household. In the financial year 2014, the lowest tax bracket paid a rate of 10% on income up to $9,075 while the highest bracket paid an average rate of 36.4% ($406,751 and above). Most individuals pay taxes across several tax brackets, and as a result, they end up with the progressive tax structure. In the current progressive federal income structure, individuals with a lower

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.

Speculate on the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes, and ascertain the most significant way in which the U.S.

25. The cost of legal advice associated with the preparation of an individual’s Federal income tax return is not deductible because it is a personal expense.

When the United States Tax Code is reviewed, this definition is accurate in each of the four definition categories. It definitely is a systematic, albeit overly burdensome statement of a body of law. It is without a doubt a system of principles of rules and it does have signals or symbols for communication such as: Title (number), Subtitle (letter), Chapter (number) Subchapter (letter), Part (Roman numeral), a multitude of §§ (numbers) (Legal, 2015). To many taxpayers definition four may also relate to the Tax Code because it can appear to hold secret meanings because comprehension is difficult. In fact, according to the Taxpayer Advocate Service (2012) report to Congress, the most serious problems taxpayers must endure in relation of the Tax Code are that it: a) makes compliance difficult and requires an inordinate amount of time preparing their returns for filing; b) burdens the majority of taxpayers with an expense for compliance through the need to hire professional preparers or for specialized tax preparation software; c) Shrouds comprehension so that taxpayers are uncertain how their taxes are calculated and what their tax rate is; d) Fosters

Taxes have been around throughout the world since the idea of civilization came to being and was implemented. The earliest forms of taxations were implemented around 4500 years ago in Mesopotamia where people used to pay taxes by use of the commonly accepted currency then which was livestock. These kinds of taxes were paid throughout the year to finance the activities of the governing sectors. Looking at the ancient world, there are taxes such as the estate taxes and the death taxes. An example of a country that had death taxes was Egypt which upon the death of an individual the people left behind who would get the property the deceased had were to pay a ten per cent tax on the property they were to inherit. Over the years, the way we pay taxes

Tax is an amount of money that a government requires people to pay according to their income, the value of their property and that is used to pay for the things done by the government. It is a charge usually of money imposed by authority on persons or property for public purposes. According to random history website, the history of taxation in the United States begins with the colonial protest against British taxation policy in the 1760s, leading to the American Revolution. The independent nation collected taxes on imports (tariffs), whiskey, and (for a while) on glass windows. Taxation started to help pay for Civil War in the U.S in July 1861. In 1913, before the start of WWI the current income tax system was turn in to law and at the same time federal form 1040 was introduce. Every U.S citizens and permanent residents with a net income of $3000 or more are required for file tax returns. Tax returns it is important that a taxpayer identifies the tax form that best suits their needs in terms of financial and legal conditions. Filing the correct form will ensure that the IRS works on the taxpayers tax returns in a timely and accurate manner (Perez) Some of the widely used tax forms for filing income tax for individuals are 1040EZ, 1040 A and the 1040. Taxes influence both individuals and economy as a whole. Main sources of the tax receipts are individual and corporate income. No matter whether we are rich or poor, we always like to reduce our tax. Furthermore, we need a tax

An income tax is not only costly in the amount of time and money it takes to file the paperwork correctly but, it also stunts economic growth as “income taxes are levied on work, savings, and investments. In essence, the government grows by taking money from what makes the economy grow” (Bedard 2010). A consumption tax on spending for goods and services that does not unduly burden the poor nor penalize savings and investments would be a sensible upgrade for the tax policy currently in place. Initially, this essay will discuss issues within the current income and corporate tax codes. The essay will then shift to reforms of the

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

Taxation plays an essential role in our daily life. The tax is compulsory levy from the government used to provide service and benefits to society which nothing will be return received directly.This essay attempts to explain how to create a good tax system or the characteristics of a good tax system, and the challenges the policy maker might face. The study of the tax policy is concerned with the design of a tax system that is capable of financing the necessary level of public spending in the most efficient and equitable way possible. Therefore, a simplified organized tax system that is efficient to finance essential expenditures and equitable that minimize its disincentive effects on economic activities. Stability is also one of the main