Taxpayer

If you fail to file your tax return and that tax return has tax that is due, the IRS will actually issue a penalty against you. This penalty can apply to any type of tax return but is reserved for taxpayers who willfully neglect to file. This basically means if you have a very good reason for not being able to file your tax return, the IRS will forgive you. What's It Going to Cost Me? If you fail to file your tax return it will cost you 5% of the total amount of net tax due per month the…

is successful; the taxpayer actually gains by not paying their taxes. In situations where tax evasion is discovered by tax authorities, the taxpayer will typically have to pay the taxes due and the fines. In looking at some of the economic models; the sole decision on evading taxes at all can depend on whether the expected gain is more than the anticipated loss (Pickhardt & Prinz, 2012). This can make a taxpayer choose to evade some of their taxes. The amounts evaded by a taxpayer usually…

negatively by many United States citizens. The agency is seen as a bully or a thief by many taxpayers. The IRS has a poor reputation from various scandals and poor treatment of taxpayers. The agency is well known for its use in scandals such as the Watergate Scandal and improper screenings. There are claims of the IRS using blackmail and harassment to force people to pay their taxes. This lead to many taxpayers to be fearful of the agency due to harassment. Discrimination was also common with…

Contemporary Tax Practice reference the same limitation placed on the applicability of the Corn Products ruling. Specifically, these cases addressed the tax treatment of stock gain and losses incurred by a business. Based upon the Corn Products ruling, taxpayers were trying to argue that their stock sales were subject the favorable ordinary loss treatment. These companies attempted to argue this point on the grounds that the corporation used their investment to achieve a similar end as futures…

includes attorneys, Certified Public Accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents and registered tax return preparers. The requirements necessary to represent these individuals are involved with representing taxpayers before the IRS. For example, they cannot be suspended or disbarred to practice law before the Internal Revenue Service. If the individuals acquire the credentials needed to fulfill the requirements outlined by the Internal Revenue Service only…

the taxpayer held legal title to property located in Hawaii. In Baker & Taylor the taxpayer engaged in active solicitation by sending employee representatives to meet potential and current purchasers of its products. The taxpayer also provided software and training for purchasing and cataloging its materials in Hawaii. Its representatives visited Hawaii on an ongoing basis to support its customers, as part of its effort to maintain its business in Hawaii. In Heftel Broadcasting the taxpayer…

In the case of Casimaty v FCT 97 ATC 5135, the taxpayer was doing fencing and farming business, which his father inherited an amount of 998 acres land that was known as “Acton View” (Australian Tax Casebook p.162). He then purchased another 40 acres of land, which he built a homestead. As time goes by, he suffered some sort of difficulties as there were drought, severe financial debts, and as well as poor health condition. As he had no alternatives, so he decided to sell-off portions of the land…

addresses the nonrecognition of a gain. For the particular taxpayer discussed in this ruling, he had exchanged a ranch in the United States for a Ranch in a foreign country and received $250,000 in cash. The taxpayer originally realized a gain of $300,000 on this exchange. Upon examination, it was determined that the location of the property should not affect the applicability of the section 1031. Having said this, due to the fact that the taxpayer did receive some cash in the exchange the…

The Commissioner of the IRS appealed the decision of the US Tax Court in regards to a business expense deduction for clothing expenditures by the defendant in the taxable year 1975. The defendant, Sandra Pevsner, taxpayer, had been working as a manager at the Sakowitz Yves St. Laurent Rive Gauche Boutique (YSL), a shop for highly fashionable and expensive women’s apparel. As a manager of the shop, she was expected to wear the YSL clothes and project the image of an exclusive lifestyle while at…

University. During that year, Sylvia had a trip around Taiwan Island on weekends and during the three-week winter vacation when she had a lecture to attend one time in Tainan. In addition, Sylvia recorded all expenses and saved receipts. Issue: Whether a taxpayer who travels abroad can deduct the travel expenses incurred? How much of the deductible travel expense can Sylvia write off for tax purpose? Conclusion: Sylvia can deduct the travel expenses incurred for business purpose while she was…