Essays on Tax Return

Income Tax Accounting

Income Tax Accounting

According to IAS 12, deferred tax asset is used to describe an asset that will minimize the amount of tax that a firm wishes to pay in a future accounting period. In the future, it can be used as a write off element when the next tax period is projected to produce increased earnings. The IAS 12 offers that the difference in tax bases for an asset and deductible temporary difference is what creates a deferred tax asset. It implies that the future cash flows are significant. The taxes are usually plowed back into the business ...

Background Introduction

The paper explores four court cases where IRS has won two of these cases and the taxpayers an equal two cases. The main area of focus is on gains, losses and investments resulting directly or indirectly from these cases. The cases have been examined to establish the elements that influenced the decisions made. Also, the quality of the decisions made has also been discussed as per the tax returns laws and the IRS implementation of the same. Existing studies show that the agency has more likelihood of winning in cases where it has been pitted against the taxpayers in ...

There is a considerable and sizeable population of small business in the US economy. Statistically speaking there are over 28 million small business that occurs with small business specifically indicating businesses with fewer than 500 employees. Over 22, million individuals are self-employed without any additional payrolls or having employed other persons. Of the working population, a considerable percentage of over 50% that translates to 120 million individuals work in the small business (US statistics and data, 2016). Small business on average have modest turnovers that attract income taxes on the cash generated. Business entities are relevant in the generation ...

The second case is about a single mom, Sarah. She is an independent woman who works as a house-cleaner for a living. Sarah has a 16-years old son who lives with her. She has provided more than half of the cost to keep up her home. Therefore, I chose the head of household for her. Since she gets her salary in cash, Sarah did not have any withheld base on her income. Tax Wise generated a SCHEDULE C-EZ (Net Profit from Business) and SCHEDULE SE (Self-Employment Tax) and charged her about $800 of self-employment tax. This was where all ...

Taxes Matter

James M. Poterba’s article attempts to explain with reasonably simple language, examples, and tables the complexity of various types of investments people often make to save for retirement. In the introduction, the author states that “this analysis looks only at taxes that are paid when funds are withdrawn or, in the case of taxable accounts, taxes that are due along the way” (Poterba 1). Poterba covers how different investment types are taxed differently, rates subject to change due to tax reform, how rates of return differ according to investment types such as bonds and equities, ...

I think Amanda makes many good points. However, I think the reasons she states for the privilege objection being the most common objection is a little convoluted. I think the most common privilege asserted is the attorney client privilege if only strictly because the value of evidence the attorney has is very high. Essentially, the attorney has the keys to the case, and inadvertent releases of attorney communicates can have extremely damaging effects to a lawsuit. I think the medical privilege, or the confessor privilege is less because not every case will use those types of witnesses – however, nearly all ...

Many of the financial professions bring ethical dilemmas; it is this reason why M.B.A. graduates must sign an oath on business ethics (Steinborn 2012). The accounting profession involves several ethical dilemmas, not the least of which is deciding when to report errors on a tax return. If one is filling out one’s own tax return and makes a mistake, there is no legal requirement for the taxpayer to submit an amended return and send in the additional payment. While the relevant regulation says that the taxpayer “should” make the correction (Treas. Reg. §§ 1.451-1(a) and 1.461-1(a)(3)), the Supreme Court has ...

Conducting a plan investment review is an important part of sponsoring any retirement plan. A review can provide your firm with a valuable opportunity to review key areas, and to help ensure that every area is operating efficiently and also you are providing a compelling retirement plan benefitting your plan participants.

Retirment Plans

Q.1. Discuss the types of questions that a plans sponsor should ask during the design, implementation, and monitoring phases of the development of plan investment provisions. Please provide an explanation of why asking the question is important. Bring in supporting references where needed.

A.1 These days people are living their lives attending ...

Executive Summary

This report shows the purported business plan of Nerd Patrol, a partnership business formed by three friends- John, Mary and Nabil. The business will be on hardware and software services, debugging, networking and franchise sales. The strategy to be adopted by the company would be using innovativeness in creating top quality for clients. Financial discipline would be adhered to. The long term goal of the business is to grow and start manufacturing innovative hardware components and software programming. Each role of active and passive managers is spelt out in this report. Employees would constitute of four units – computer engineers, marketing ...

Individual Income Tax (North Carolina)

Individual Income Tax (North Carolina) Personal income tax or individual income tax refers to the levied tax on personal income. Here, individual refers to a person, non-juristic body of person, an ordinary person or an individual estate. For an individual to be liable for personal income tax, one has to compute file tax returns, compute tax liability as well as pay the indicated tax as according to the calendar of the year. The individual tax income differs in different states with each state having its own rights of running the tax provided by its residents. This research would look ...

Executive summary

The Affordable Care Act (ACA) addresses the challenges facing the health industry. The government has been implementing the provisions in incremental stages since 2010 and more changes are still underway. This report discusses the impact that this act has on indoor tanning services by analyzing the indoor tanning services tax, health insurance coverage duty on employers and the additional Medicare tax. Firstly, the indoor services tax applies to businesses offering tanning services as their predominant activity. However, the law provides tax exemptions to providers such as phototherapy services, qualified physical fitness facilities, spray-on tanning services and those selling tanning ...

Business Law

Introduction Understanding the legal and ethical framework underpinning the operation of businesses is a prerequisite for engaging in activities and practices that are legally compliant. Most of the dilemmas facing business individuals and organizations stem from the lack of understanding and failure to adhere to the laws. Notably, laws specify what is legally permissible in the corporate society and as well stipulates the consequences that may follow in the event of engaging in non-compliant activities. Moreover, it is important to underscore that laws are never static. They can change from time to time and it is upon the business ...

Analysis of Financial Statements of Goldman Sachs

Introduction A world renowned company, Goldman Sachs is an American Multinational Corporation that deals with the institutional clients offering investment banking, investment management and other related financial services. The following report will analyze some of the crucial items of the financial statements of Goldman Sachs including Earning per Share, Cash Flow Statement, Tax Deferrals, Share based compensation, Employee Compensation Plans. We are sure that by the end of this report, we will be able to have a comprehensive overview of the company’s financial statements.

Amount Disclosed Footnote Information-Deferred Taxes Note 24 of the Annual Report is ...

In this paperwork, I am going to demonstrate my understanding about Federal Unemployment Tax Act. I will start by defining the phrase Federal Unemployment Tax Act. The Federal Unemployment Tax Act is defined as the innovative legislation that permits the federal government to tax companies with staffs with the objective of collecting revenue that is owed to state unemployment agencies and paid to unemployed workers who are entitled to maintain unemployment cover. Employers are required by the Federal Unemployment Tax Act to file IRS Form 940 yearly in combination with paying this tax (Instructions for Form 940, Employer’s ...

Theoretical Framework

This study will apply control theory to make a comparison between internal and external appointed CEOs in Vietnam and come up with a conclusion on whether performance of CEOs is dependent on the mode of appointment, and the motivation factors that lead to the choice of mode of appointment. The theory states that performance of any company depends on the mode of CEO appointment embraced by a company. Companies with internally appointed CEO are known to be more profitable than companies with externally appointed CEOs. Researchers relates this to the accountability and competence of internally appointed CEOs compared with externally appointed CEO ...

- Is Steve's un-reimbursed commuting expenses an allowable deduction on his personal tax return if he is assigned to be a volunteer usher for the Church's Saturday or Sunday services? If Steve is assigned to be a volunteer in the church on both Saturdays and Sundays, his tax position regarding the un-reimbursed commuter expenses can be explained as follows: According to code 162(a), the un-reimbursed commuter expenses remain unallowable for tax purposes because of the following reasons: Such expenses are not incurred for a profit gain. Steve is not in any profitable business so as to be able to claim ...

EXECUTIVE SUMMARY

There are over 200,000 applications in the iPhone Store and the increasing number of applications is posing a challenge for designers and users to differentiate apps. Users are, however, equipped with better choices concerning the applications that are useful. If an application does not meet their needs, finding another is a step away. The user experience determines how an application will stand out among the rest in the market. Well designed apps will ultimately attract and retain users. This literature focuses on the design of an iPhone interface that will be used for the access of a tax filling revenue. The ...

Letter of Transmittal

[Professor’s Designation] [Institute Address] Dear Mr. /Mrs. /Ms. []: Enclosed herewith please find the requisite formal report on the topic of “Identity theft happening to our children” duly completed in all aspects as per laid down requirements. [Writer’s Name]

Executive Summary

This report describes a specific type of identity theft which is related to children. This report is organized in such a manner that a brief introduction is followed by various signs of identity theft happening and then a comprehensive discussion about the impacts of identity theft on children. There are three exemplary situations are given ...

Ethics in Tax Practice

For an individual professional to be termed as ethical, he has to conform to professional standards of a certain group, or profession. Therefore, tax practitioners need to comply with the tax legal requirements, as well as, American Institute of Certified Public Accountants (AICPA) rules, for them to be termed as ethical. The legal requirements, together with non-compliance penalties are found in Circular 230 in the Treasury department. They are also found in the Internal Revenue Code (1986). This paper discusses the legal tax requirements for the tax practitioners. The law is believed to be complex as many people find it ...

RE: Howdy Brewster

I have reviewed your memo regarding the case of Mr. Howdy Brewster. In 2011 Howdy signed a contract with the Aztec oil and Gas Company to build a pipeline across his property for the pipeline to cross over his property so that it can maintain its useful life. He received a given amount of $9,200 after the contract was signed and to resolve the issue with the neighbor paid an amount of $7,500 in so that the boundary can be sorted out with the neighbor as well. In September the same year, Howdy dammed a stream to have more water available ...

Introduction

The Federal income tax forms are developed in a way that suits the social and economic conditions of all the federal tax payers. This means that the forms put into consideration the different aspects of life evident in the lives of the taxpayers. These aspects of life include but not limited to marriage, education, income earned or generated, age, health and social schemes, business and overall functionality of the economy. In this regard, the individual tax payers’ decisions on the forms to choose when it comes to payment of federal taxes are greatly influenced by these life aspects in the ...