IRS tax forms

In 1971, the United States Congress enacted the Section 7216 (§7216) of the Internal Revenue Code (IRC) (IRS, 2015). This provision served to prohibit unlawful disclose of tax return information by tax preparers (IRS, 2015). The purpose of this paper is to use the information provided in §7216 in concordance with the case of John Jones, CPA, to determine if confidentiality has been broken and is punishable by law. This paper will begin with a brief discussion of the statutes laid out in IRC…

COST OF GOODS SOLD Cost of goods sold is a deduction on a taxpayer’s taxable income. For tax purposes, Piratephernalia Corporation must capitalize a portion of their overhead expenses into the annual inventory calculation. Additionally, cost of goods sold includes only the inventory sold throughout the fiscal year. Unsold purchased inventory will not be deducted from the taxable income. INTEREST INCOME Generally, state bond interest is exempt from taxation. Further, interest income from…

corporation that has more than 50% of the value of its outstanding stock owned (directly or indirectly) by 5 or fewer individuals at any time during the last half of the tax year, and isn't a personal service corporation. According to IRS publication 542 and 544, a closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers. For the passive activity rules, they apply to…

America is in a state of turmoil with economic downturn and job loss to illegal immigrants, a broken tax system, and the threat of ISIS in Iraq and Syria. Barack Obama promised change in 2008, but no economic recovery has been evident, jobs have been continuously lost, and he has dismissed the threat of ISIS and saying that the U.S. “is making significant progress defeating them” (Riley 1) We need tax reform, job creation, and a strong military that will defend our nation. Ted Cruz has promised…

A taxpayer is able to choose from three different tax structures upon forming his or her business. These three different businesses are known as partnerships, “C” corporations and “S” corporations. For methods of incorporation, the internal revenue code dictates a business entity on how they can benefit the taxpayer in the most tax efficient way. The main objective for a business entity and its owners or shareholders is to start a business that fits the owner’s needs and to avoid paying more…

information, Fred Murray is one of the shareholders and wants to sell his stock back to the corporation. His shares have a FMV of $200,000 dollars and a tax basis of $50,000; the redemption is planned for December 31st, which is the end of the year. This paper is going to address about whether the possibility of determining dividend or capital gain form the information provided, the three Internal Revenue Service change in stock ownership test, and the circumstances having constructive ownership…

He has concerns that the current contract that are used to hire the instructors properly recorded that they are independent contractors not employees. II. Issues: A. What form of business organization would be most suitable for CIA? B. How can CIA’s instructor contracts accurately depict the status of the instructors? III. Laws: A. Business Organization Law When deciding to incorporate in Delaware a business owner may register…

Topic #3: Tax Cases Question #1: Provide an overview of and the ruling for the Corn Products Refining Co. Case. Answer: In the Corn Products Refining Co. case, the company had purchased corn futures in order to ensure that the corn needed for operations could be obtained in times of shortage or raising prices, without the need to worry about storage capacity limitations. The company reported the gain or loss on the futures as ordinary income and losses in 1940 and 1942, however the…

institution’s real estate and personal property to be tax exempted, there are two qualifying factors. The factors are qualifying as a charity and use for a charitable purpose (Showalter, 2012). To qualify as a 501 (c)(3) charitable organization, the organization must be organized and operated for religious, hospital, educational, employee representation, or welfare purposes (Showalter, 2012). In order for an organization to qualify as charitable, the IRS has been using the “community benefit…

I. Introduction To counter the rising problem of economic equality, a global wealth tax is a proposal that has been widely received and considered a viable solution. This tax however, aimed at diminishing the high rate of accumulated wealth by top decile earners, may not be as effective as it purports in theory for a number of reasons: there is limited evidence proving the desired effects will be achieved, all countries must agree upon a uniform system and share information, studies have shown…