Income Tax Accounting Week 2 Discussion
Each 150 words
Post 1:
Week 2 Discussion Topic 1
Discussion Topic:
Find a full text article use legislative sources and define the term “tax expenditures”. The Joint Committee on Taxation regularly estimates the current and projected tax expenditures associated with a long list of provisions in the tax law. Locate the Joint Committee on Taxation’s most recent analysis (https://www.jct.gov/publications.html?func=select&id=5) and identify the current tax expenditure associated with the deductions for either medical expenses, interest on student loans, mortgage interest, or charitable contributions. How are these costs expected to change over the next five years? How is the concept of tax expenditures helpful to tax policy analysts?
Post 2: Respond to Peer
Emily Draper
RE: Week 2 Discussion Topic 1
I have chose to find a legislative source and I found the U.S. Department of Treasury website. According to the Treasury website, ” Tax expenditures are defined by law as “revenue losses attributable to provisions of the Federal tax laws which allow a special exclusion, exemption, or deduction from gross income or which provide a special credit, a preferential rate of tax, or a deferral of tax liability.” These exceptions may be viewed as alternatives to other policy instruments, such as spending or regulatory programs”. I decided to look up the tax expenditure associated with charitable contributions. According to Estimates Of Federal Tax Expenditures For Fiscal Years 2018-2022, page 11, ” the ability of donors to such nonprofit organizations to claim a charitable contribution deduction is a tax expenditure”. This means that the charitable contributions will not be under deductions, they will be under tax expenditures for nonprofit organizations. Also, in the article, there are charts showing what percentage will be a tax expenditure and some of it can be based on how much income you make throughout the fiscal year. I believe making these laws on tax expenditures will overall help the tax policy analysts to be more efficient and consistent with the tax returns and everything is classified under.
U.S. Department of the Treasury. (n.d.). Retrieved from https://home.treasury.gov/policy-issues/tax-policy/tax-expenditures
(n.d.). Retrieved from https://www.jct.gov/publications.html?func=startdown&id=5148
Post 3:
Week 2 Discussion Topic 2 Ethics
Discussion Topic:
Do some research using WestLaw in the KU library and find a case that involves tax fraud committed by a taxpayer. Give a very brief summary of the case and discuss if you agree or disagree with the court’s conclusion. Make sure to note your source including the complete case citation. See link found in Start Here for help on how to search for cases in WestLaw. Please be patient as the video loads in to play.
Post 4: Respond to Peer
Emily Draper
RE: Week 2 Discussion Topic 2 Ethics
I found an article on google. It is titled, “Former Ohio County Magistrate Sentenced for Tax Fraud”. According to the article, Harry A. Radcliffe III faced nine accounts of indictment of wiring fraud and false filing his income tax returns in 2018. ” Radcliffe was accused of soliciting and accepting bribes from W&S Bail Bonding, doing business as A Bail Bonding of Wheeling, concealing said bribes from the state of West Virginia and the IRS, directing defendants and their families to ABC without offering other options as required, altering bonds to require a bonding company, and collecting said bribes via credit card and interstate travel from January 2012 to April 2016. He also was accused of failing to report $11,000 in income on both his 2013 and 2014 federal income taxes, and failing to report $4,500 in income on his 2015 federal income taxes”. He has tried doing this multiple times and finally got convicted this year. I agree with the courts decision and think they should have stopped him a long time ago. Just because he works for the government doesn’t mean he should be able to get away with it. Many people try to do the same thing he was doing and all of them usually get caught sooner or later.
Jones, M. (n.d.). Former Ohio County Magistrate Sentenced for Tax Fraud. Retrieved from http://www.theintelligencer.net/news/2019/08/former-ohio-county-magistrate-sentenced-for-tax-fraud/
Grading Rubric:
Criteria
Points
Description
Thoroughness/Timeliness
0-30
Thoroughness: All posts are substantial (4-5 sentences). Timeliness: Initial posts are made by the assigned due date and other posts are submitted on 3 different days
Conceptual Accuracy/Application
0-30
Discussions apply concepts from the textbook, literature and/or other authoritative sources (minimum number of required sources for each topic from the KU library). Terminology is used precisely and accurately
Critical/Creative Thinking
0-30
Discussions demonstrate critical or creative thinking such as examples or application of the topic or topics presented. Student offers original ideas or thoughts based on the information presented (roughly 80% of the material is original and 20% is taken from cited sources).
Solution Preview
Income Tax Accounting
Discussion Topic 1
According to international budget website, tax expenditures are described as estimated loss of revenue by the government resulting from offering tax preferences or concessions to particular activities or class of taxpayers.
(638 words)