Federal Taxes

Each of the Discussions needs to be over 200 words.

Unit 1 Assignment

Complete the following steps and submit a Word document that contains the information gathered and the assigned work gathered in the following steps:

1. Go to the IRS Website ( http://www.irs.gov/ ). Take a screenshot of the Home Page and add to your Word document. Label the screenshot as Item # 1.

2. Find the Federal Income tax Form 1040 for the current year. Take a screenshot and add it as Item # 2 in your Word document.

3. Enter your name and address on the Federal Tax Form 1040 and take a screenshot. Add that as Item # 3 in your Word document.

4. Go to the IRS website, ( http://www.irs.gov ) and find Code Section 61.Take a screenshot of that Web page, and add that as Item # 4 in your Word document.

5. Visit -the Joint Committee on Taxation website http://www.jct.gov/publications.html or the United States Treasury website www.ustreas.gov . Find an argument against 16th Amendment by reviewing this website. Take a screenshot of the web page and add it as Item # 5 of your Word document.

6. In a separate Word document, write a 200–250 word paper using APA style. Present your thesis statement and References. Topic: Summarize the argument which formed the debate of the 16th Amendment. The debate studied should only include the debate and discussion made as the new Constitutional Amendment was being crafted. Do not include discussion related to the current fraudulent claims that the Federal Income Tax is Unconstitutional. Your paper should include a proper APA 6th Edition Running head and cover page.

7. Submit both documents to the Dropbox for Unit 1.

Source: Why Repealing the 16th Amendment Probably Wouldn't Matter: Taxanalysts. Retrieved from http://www.taxhistory.org/thp/readings.nsf/ArtWeb/E3A711293C13EF8685257A8500487713?OpenDocument

Source: Joint Committee of Taxation: Retrieved from https://www.jct.gov/publications.html

Source: United States Department of Treasury: Retrieved from www.ustreas.gov

Unit 2 Discussion

Throughout this course, many discussion opportunities come up where you need to respond to other people's opinions and comments. Then respond to your Discussion topic after you have completed your reading.

The United States income tax system is based on the idea of voluntary compliance; it is the taxpayer's responsibility to report all income. Tax evasion is illegal. Some people try to evade paying taxes by failing to report all or some of their income.

Moneymaking activities that are not reported to the government are part of an underground economy. If taxpayers fail to pay what officials say they owe, the IRS can collect back taxes and assess a penalty.

Tax avoidance is perfectly legal. The IRS allows taxpayers to claim certain deductions, credits, and adjustments to income. For instance, some homeowners can claim a deduction for interest they pay on a home mortgage. Many people pay more federal income tax than necessary because they misunderstand tax laws and fail to keep good records.

· Discuss whether or not the below listed actions are tax avoidance or tax evasion.

· Discuss the ethical implications of employing each of these in a tax return.

1. Keeping a log of business expenses

2. Ignoring earnings from lawn mowing

3. Not reporting interest earned on savings account

4. Keeping a log of contributions to charity

5. Not reporting tips

6. Claiming your dependents as tax deductions

Unit 3 Discussion

Discussion Topic: George, a wealthy investor, is uncertain whether he should invest in taxable or tax-exempt bonds. What tax and nontax factors should be considered?

George needs assistance understanding the different application of prepaid income under Tax Law and Financial Accounting. Explain this difference to George.

Unit 4 Discussion

Discussion Topic: Individuals who own homes may take a tax deduction for interest paid. Many individuals believe that this tax law discriminates against individuals who rent. Do you think this deduction is discriminatory? Explain and share your thoughts.

Additionally, gifts and inheritances have been excluded from gross income since 1913. Discuss the tax consequences of gifts made of property and any income produced by the property. What, if any, are the exclusions and taxable income according to Section 102.

Unit 5 Discussion

Discussion Topic: Vincent pays $20,000 for equipment to use in his trade or business. He pays sales tax of $800 as a result of the purchase. Must the $800 tax be capitalized as part of the purchase price?

Vincent’s friend tells him that capital gains tax is discriminatory in that it is imposed upon individuals who can afford to buy capital assets. Do you agree or disagree? Why? Why not? Be sure to include the definition of “capital asset” and “capital gain” in your response.

Unit 6 Discussion

Discussion Topic: What is the distinction between deductions for AGI and deductions from AGI and why should this be important for individuals?

As you review deductions from AGI and for AGI, how should bribes and kickbacks be treated for tax purposes? Are they a deduction and are they allowed? As you recall Al Capone’s conviction caused mobsters and other illegal gangsters to rethink their method of keeping detailed records? Why did this rethink occurred? How different was this situation to with bribes and kickbacks differ now with multimillion-dollar corporations do business?

Unit 7 Discussion

Discussion Topic: Identify some common miscellaneous itemized deductions and identify any limitations that are imposed on the deductibility of these items.

One itemized deduction allowed is for medical expenses. In what cases are medical insurance premiums paid by an individual not deductible as qualified expenses?

Unit 8 Discussion

Discussion Topic: When property is disposed of, what factors influence the amount of the deductible loss? Define.

What is the importance, if any, of passive activity?

Compare and contrast the computational rules for deducting casualty losses on personal-use property with casualty losses incurred on business or investment property. Define the difference. What are the limitations for both?

Unit 9 Discussion

Discussion Topic: Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers, and why?

Your client is about to establish his own business and hire at least 10 employees. They ask you for advice concerning establishing a qualified versus a non-qualified retirement plan. What do you advise your client? Would your answer change if you were a potential employee? Why or why not?

Unit 10 Paper

After reflecting on what you have learned and how you have benefited by taking AB256, Federal Tax, write a minimum one-page response to the questions below. Make sure to address the critical elements so you will be successful in completing this Assignment.

Please answer the following questions in your paper:

1. Reflect and describe which key concepts and topics in this course have made you a stronger candidate to enter the business world.

2. Discuss how this course has affected you in your professional development as a student and as a person as well as encouraging you on your academic path.

Respond using the critical elements below and submit your minimum one page response to the Dropbox.

Critical Elements:

· Write your original response in Standard American English, paying special attention to grammar, style and mechanics.

· Respond to the questions in a thorough manner, providing specific examples of concepts, topics, from question 1, and specific examples of the impact on you from question 2.

· Ensure that your viewpoint and purpose are clearly stated.

· Demonstrate logical and appropriate transitions from one idea to another.

· Your paper should be highly organized, logical and focused.