Concept explainers
Explain the reason of Z, the friend of J for the negative view on tax course.
Explanation of Solution
What is Tax: A tax is a payment levied by the order of Federal, state or local government agencies and collected from the general public to fund the developmental work of the government and not directly linked to the benefits received by the public. A tax must have following characteristics;
- 1. Tax is mandatory payment from the eligible public/enterprise
- 2. Tax is levied by the Government agencies
- 3. Tax has no direct relationship with the benefit received by the taxpayer
Taxes are integral part of everybody’s life. Tax plays a major role on multiple personal/organizational decision of ones’ life, like deciding on the investment avenues, choosing among the different jobs, savings for specific needs of life, making or receiving gifts or estates, tax planning and many more.
Since, Tax is an important aspect of ones’ life and all must take tax course for their own interest. Hence, Z’s negative view on tax is out of place and naïve.
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Chapter 1 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+...(LL)2020
- Margaret's tax return is prepared, but she does non have the money to pay the amount due. She should?arrow_forwardCatriona, a taxpayer, gives the following reasons for refusing to pay a tax. Which of her reasons is not acceptable for legally refusing to pay the tax? a.) That she has been deprived of due process of law. b.) Then she will derive no benefit from the tax. c.) That there is a lack of territorial jurisdiction. d.) That the prescriptive period for the tax has lapsed.arrow_forwardThis doesn't seem correct. What would be Omar's self-employement tax liability if he didn't receive any salary?arrow_forward
- Although Margaret's tax return has been prepared, she is unable to pay the balance owed. She ought to?arrow_forwardCatriona Grace, a taxpayer, gives the following reasons for refusing to pay a tax. Which of her reasons is not acceptable for legally refusing to pay the tax? a.) That she has been deprived of due process of law. b.) The she will derive no benefit from the tax. c.) That there is lack of territorial jurisdiction. d.) That the prescriptive period for the tax has lapsed.arrow_forwardJackie, during one of your talks, shared that she is so frustrated with taxpayers who are trying to get away with their taxes reasoning that the government is in need of funds to finance its pandemic response. You then explained, given that you are about to finish your Income Taxation course, that it is not always the case that the government collection is affected by tax escapes employed by taxpayers. Which of the following should you not include as an example to explain your case? A. tax dodging B. tax transformation C. tax shifting D. tax capitalizationarrow_forward
- The Tax Code was created to punished people who did not pay taxes. True Falsearrow_forwardCadla has a very complex tax return and it looks like she will not be able to file her tax return by its due date. When is her tax return due? What are Cadla's options for paying her tax due and filing her tax return this year? What are the consequences if Cadla does not file or pay her tax in a timely manner? Be specificarrow_forwardJames has just been audited by the IRS and, as a result, has been assessed a substantial deficiency (which he has not yet paid) in additional income taxes. In preparing his defense, James advances the following possibilities. Are any of them viable? Although a resident of Texas, James plans to sue in a District Court in Oregon that appears to be more favorably inclined toward taxpayers. If (a) is not possible, James plans to take his case to a Texas state court as he is more familiar with the practices there. Yes If he loses at the trial court level, James plans to appeal to either the Federal Circuit or the 11th Circuit Court of Appeals because he has relatives in both Washington D.C., and Atlanta. Staying with these relatives could save James lodging expense while his appeal is being heard by the court. Even if he does not win at the trial court or appeal court level, James feels certain of success on an appeal to the Supreme Court.arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT