Tax law
Name:
Institution:
QUESTION ONE
John formerly working as a casual dealer in real estate means that he was not someone employee or haven’t formed a partnership.It indicates he had not incorporated his business hence no tax paid. Licensed real estate dealers are view in the statute as non-employee and are treated as self-employed for the entire Federal tax purpose. Therefore, John now will pay tax including income and employment taxes.
Theresa quitting the job and opening her practice as a CPA means she will change from personal tax to business tax. Individual income tax often taxes the total income of a person whereas some deductions permitted. On the other hand, corporate income taxes often tax net income.
The tax position is not likely to change.
QUESTION TWO
It is true that the seventeenth amendment to the U.S constitution was to counter attack Supreme Court decision that had invalidated the Federal income tax. The amendment allowed the Congress to levy an income tax without dividing it among the States on the U.S census. The Supreme Court decision in the case of Pollock vs. Farmers Loan & Trust Co in 1985 was that income tax on rents; dividend and interest were a direct tax. The amendment overturned that decision and exempted income taxes from constitutional requirement regarding direct taxes.
QUESTION THREE
The difference between proportional and progressive tax is that proportional tax taxes the same percentage of income no matter the level of revenue while progressive tax takes a larger percentage of income as the income increases.
QUESTION FOUR
Pay as you go is a system for corporate or individual to pay installments of their tax liability on earnings. Every employee who uses that type of payments receive a PAYG payment summaries including, his/her details; gross income earned, total PAYG withheld by the payer and payers withholding number. The system helps wage earner to know the tax he/she pays because the system calculates an annual income by weekly or fortnightly payments including income earned from part-time or casual work.
QUESTION FIVE
In the perspective of taxable and nontaxable income, the Pontiac G6 sedans awarded to Oprah’s television audience was subject to federal taxation and contained in the gross income. That is because the code of Federal regulations outlines the taxable and nontaxable income to be included in one’s federal taxes. The codes state that “if someone wins a prize in a lucky number drawing, television or radio quiz program or other events, you are mandated to encompass in your income.” In the other scenario, the furniture company should have handed the consumers a form 1099-MISC.That is a form 1099 used to report miscellaneous income.
QUESTION SIX
False incarceration is tax deductible. After I realize that the client I am interviewing did not include the income of $ 96000 received as a recovery of false incarceration, I will not prepare the tax return. The amount should first be taxed, and the client pays a penalty for failure to include the income in the list.
QUESTION SEVEN
IRS means internal revenue service, and it is a revenue service of America federal government.
The form must be signed by commissioner of internal revenue
The form must be filed by taxpayer advocates.
The form can’t be used by someone not related to the taxpayer. That is because there is a fee charged to the users.
Reference
Jang Sungdoo, (2014). Review of 2013 “Income Tax Law” and “Inheritance and Gift Tax Law” Cases. Seoul Tax Law Review, 20(1), 325-373.
Kim Jihyun,. (2013). Review of 2012 Corporate Tax Act Law and Income Tax Law Cases. Seoul Tax Law Review, 19(1), 423-466. http://dx.doi.org/10.16974/stlr.2013.19.1.011