TAXES (Research Paper Sample)

Student’s Name Institution Affiliation Course Date Chapter 1. 32) A. Severance taxes- The nature of severance taxes is to tax the profits of natural resources. The purpose of severance taxes is to encourage long-term investment in sustainable practices and renewable energy. B. Franchise taxes- are a form of excise tax imposed on businesses by the government. This tax aims to fund government services, such as schools, roads, and police. Franchise taxes are also used to fund businesses that are not part of an industry (such as bakeries) or have no physical presence in the country where they operate (such as online retailers). C) Occupational fees are a way for businesses to make money by charging their customers. Its purpose is that They're a way for businesses to try and keep their costs down by not having to pay employees as much. D). Customs duties- Customs duties are taxes applied to imported goods. They are intended to raise government revenues, which may be used to fund services such as law enforcement, defense, and health care. According to Mukhammadzokir and others (2021). E). Export duties are a tax on exporting goods, which the government collects. Export duties aim to ensure a fair and equitable distribution of products within society. 39. a. The income tax return for 2020 was filed on February 19, 2021. The applicable period, in this case, is the income tax return for 2020. b. The income tax return for 2020 was filed on June 25, 2021 Therefore, the applicable period for any additional tax assessed by the IRS would be from June 25, 2021, to June 25, 2024. c. The income tax return for 2020 was prepared on April 4, 2021, but was never filed. Through some misunderstanding between the preparer and the taxpayer, each expected the other to file the return. Then the statute will begin running on April 4, 2023—which means that if you don't file. d. The income tax return for 2020 was never filed because the taxpayer thought no additional tax was due. The statute of limitation on additional tax assessments is three years from the file failure date. Therefore, the earliest that the IRS can assess additional tax is April 2020 Research problem 2. A summary of a transaction of a carbon tax The United States should enact a carbon tax. This tax would be applied to all sources of fossil fuel that cause emissions, including coal, oil, and natural gas. The tax would be collected by the federal government and then redistributed back to citizens through tax credits or rebate programs. The proposed carbon tax would raise about $3 billion annually in revenue for the federal government and about $2 billion yearly for state governments. The proposed carbon tax would affect all consumers equally and would not increase prices for most goods or services beyond the normal inflation rate. However, an alternative proposal includes a rebate that would be paid out on behalf of low-income households. This rebate would help offset some costs for those households who could not afford it. The cost of implementing a carbon tax is estimated to be between 0% and 2%. The cost increases as more industries are affected by the tax, but many estimates suggest that the impact will be negligible overall. It then follows to have met all the five AICPA principles of good tax policy. The following are five of the AICPA's principles of good tax policy according to Jia and Lin (2020), which shall be analyzed following the carbon tax: 1. Tax policy should be consistent with the basic underlying principles of sound public finance, which include: a) prudence in spending; b) a commitment to full employment; c) equitable distribution of income and wealth; d) an adequate supply of capital. 2. Tax policy should not discourage economic activity or reduce the capacity of the government to perform its basic functions. 3. Tax policy should neither obscure nor distort economic decisions. 4. Tax policy should encourage savings (especially for education and retirement), investment, and entrepreneurship. 5. The citizenry must have confidence in the integrity of taxation and its administration by government bodies that are subject to public scrutiny and accountability CHAPTER 2 7. The following is the ranking from the lowest to the highest. 1. Interpretive Regulation 2. Legislative Regulation 3. Letter Ruling 4. Revenue Ruling 5. Internal Revenue Code 6. proposed regulation 22. a. The U.S. Tax Court must follow the precedent of the U.S. Court of Appeals for the Federal Circuit because that court is the highest appeals court for tax cases in the United States, and its precedents are binding on all other courts in the country. b. The U.S. Court of Federal Claims must follow precedent from the United States Supreme Court because it is a court of last resort for claims under federal law. c. The U.S. District Court must follow precedent from the Supreme Court of the United States or another district court with jurisdiction over that case's subject matter and location since both are considered courts of last resort for claims under federal law (unless those claims were brought first to a state's highest court). This is according to Christensen and Hearson (2019) CHAPTER 3 2. the following items are inclusions in gross income: * During the year, a stock the taxpayer purchased as an investment doubled in value. * Amount an off-duty motorcycle police officer received for escorting a funeral...