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16 Cards in this Set
- Front
- Back
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Tax
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payment to support cost of government
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Taxpayer
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person or corporation required to pay taxes
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Incidence
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ultimate burden represented by the tax. direct payment or passed on to the consumer
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Jurisdiction
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right of a government to levy tax on a specific person
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tax base
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an item, or occurrence, transaction, or activity with respect to which a tax is levied
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flat rate
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single percentage applied to the entire tax base
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graduated rate
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multiple percentages applied to specific portions or brackets of the tax base
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use tax
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tax on ownership, possession or consumption of tangible goods. Only applies if owner of goods did not pay the state's sales tax at time of purchase. As a rule , consumers may take credit for out-of-state sales taxes against in-state use tax liability
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employment taxes
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pay for Social Security and Medicare
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unemployment taxes
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pay for unemployment insurance
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Transfer Taxes
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wealth transfered at death or as a gift
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VAT-value added taxes
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Value added taxes are levied on incremental value a firm adds to the goods.
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Three basic sources of authority:
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Statutory Law
Administrative Judicial Decisions |
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Statutory Authority
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Internal Revenue Code
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Administrative Authority
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Department of the Treasury: writing regulations to interpret and illustrate the rules in the IRS Code
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Judicial Decisions
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Supreme Court, court cases disputing IRS interpretation of the law
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