Tax returns can sometimes turn out in owing money to the government. With many different laws, some can be misinterpreted and questioned. If an individual believes their tax return could have been different due to their interpretation of a law, they can combat it in court. However, before the individual goes to court, they should do extensive research on tax laws. Tax laws can be researched by referencing two sources, primary and secondary sources. The substantial authority would also need to be factored into understanding the laws. If the case goes to court, it is also beneficial to understand how the Internal Revenue Service (IRS) and the courts interpret the tax laws.
The Taxpayer Dispute
As a taxpayer, an individual would want to
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Primary sources of federal tax law include; “the internal revenue code Title 26, decisions made by courts, such as the Supreme Court, United States Tax Court or district courts” (Anderson et al., 2010, pp. 1-8 – 1-21). Additionally, the Internal Revenue Service has published tax laws. The sources of tax laws also hold an authoritative value for each one. A tax law in the Legislative Branch begins in the House of Representatives and is incorporated in a bill (Anderson et al., 2010). The bill is then distributed and voted on. The bill then ends up with the Senate (Anderson et al., 2010). If the Senate approves the bill, its final stop is at the President’s desk for the President’s signature (Anderson et al., 2010). If approved by the president, it becomes public law (Anderson et al., 2010). Moreover, the Treasury Department creates rules and regulations made by the Internal Revenue Service. The other sources of primary tax law are the decisions made from the Judicial Branch. The U.S. Tax Court, U.S. Court of Federal Claims and U.S. district courts have the power to override tax laws if they disagree with the current tax …show more content…
The secondary sources of tax law can be resources such as “treatises, legal encyclopedias, journal articles, American Law Report (ALR) annotations and loose-leaf services” (Yale University, 2015, para. 5-7). Treatises are works that focus on particular areas of law. Additionally, treatises will usually reference cases and statutes of a particular area of law (Yale University, 2015). Legal encyclopedias are great sources of information that provide high-level information for a particular jurisdiction (Yale University, 2015). An example of a legal encyclopedia would be the “Corpus Juris Secundum” (Yale University, 2015, para. 4). Journal articles or periodicals are found in legal journals that can focus on specific legal issues. Legal periodicals can be found in indexes such as “the Index to Legal Periodicals” (Yale University, 2015, para. 3). The American Law Report annotations can provide good information that focus on narrow areas of the law (Yale University, 2015). The ALR Index is a great tool to find specific topics of law. Moreover, there are other secondary sources of tax law, which are provided by loose-leaf services. Loose-leaf services will contain specific “court decisions, commentaries or administrative regulations” (Yale University, 2015, para. 7). Today, most secondary sources can be found on the Internet. Internet databases compile these documents and
The law making process is a lengthy process. First, a representative must have an idea for a new law and they become the sponsor of this bill. The representative must present to the bill to the Clerk of the House if it is in the house (H.R. Bills), or in the Senate (S Bills). The Government Printing Office, GPO, then prints the bill and distributes it to each representative. The Speaker of the House, for further study, then assigns this bill to a standing committee within the house. The standing committee studies the bill and its contents and has two options, either to release the bill with a recommendation to pass it or lay it aside so it cannot be voted on. If the bill is released, it may be voted on or sent into debate within the house and needs a majority vote for the bill to move onto the Senate. Within the Senate, the bill must go through one of the Senate’s sixteen standing committees, and as with the House of Representatives, the bill is either released or pigeonholed. If it is released, a simple majority passes the bill. The bill takes another step into a conference committee, which is made up of members of the Hou...
Whether or not to keep or discard the Bush era tax cuts for the wealthy, give tax breaks to the lowest tax bracket, and even throwing out the entire current tax code and replacing it with a simpler version, tax code and tax law has been a very controversial topic for the past few years. As it stands, the current tax code has over seventy two thousand pages, compared to the four hundred pages it had in 1913. There are many different stakeholders in this debate including taxpayers, corporations, businesses, etc. Americans for Tax Reform (ATR) is an organization that was “founded in 1985 by Grover Norquist at the request of President Reagan”(.N.p.). Their goal is to create and advocate for a simple flat tax,“...on the belief that they will provide a strong stimulus to investment, employment, and output” (Stokey 1). They promote their organization and represent taxpayers in all fifty states. Along with tax reform, ATR also advocates for individual health care, free trade, and spending transparency (.N.p.). Using very simple and easy to understand images, ATR is able to convey their goals and get information across to the general audience that visits their website.
...thirds vote of the Legislature to impose new states taxes and a vote of people before any local tax can be imposed.
The greatest legal document ever to be written is the United States Constitution. The constitution is ultimately a series of power compromises and is the foundation of common law. Merriam-Webster defines common law as " the area of law that has to do with the subject matter and with the interpretation and construction of constitutions or that deals with the nature and organization of government" (Constitutional Law). Cases involving constitutional law are heard by the United States Supreme Court where judgment is based on the U.S. Constitution. Of the various different articles seated in the constitution, three of them describe a system of checks and balances dividing the national government into three branches. This is also called separation of powers (Beatty, Samuelson, Bredeson 57).
The legislative branch is responsible for making laws and includes Congress, the Senate and the House of Representatives. The Senate has 100 members, two from each state. The house of representatives is made up of 435 members, and the larger the population of the state is, the more representatives it will have. The House and the Senate are also known as Congressional Chambers, and they both have particular exclusive powers. The consent of both chambers is required to pass any legislation. But it can only become law if it is signed by the President. The President has the power to veto a bill though, which will deny the legislation and kick the bill back to Congress. It may then only be passed if 2/3 of both houses of Congress vote to pass the bill.
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
Congress and The Presidency Congress as a whole makes laws. When Bills are addressed they must meet the approval of both the House and the Senate in order to become a Law, and then the President can always veto it. Congress also deals with matters of public concern be it something that needs to be investigated or something that needs to be put before the public to raise awareness. Congress is made up of two parts: The Senate and the House of Representatives. Each is granted different powers and responsibilities.
Many ponder the idea of federal taxes and whether the wealthy deserve to pay a higher percentage rate of their overall income. That is, they argue that because our society needs more equality and a lower national budget deficit, taxes on the rich must be raised. This specific topic has been discussed for decades, and due to the severely different perspectives, it is unclear whether the two sides will ever come to an agreement. President Barack Obama and much of the Democratic Party strongly lean towards raising taxes on the rich, while the conservatives and the Republican Party heavily lean towards a more balanced flat tax. However, after extensive research and focus on what would be best for the equality of individuals, the nation and its economy, this paper will firmly prove that the top one percent should not be taxed any more than they are today.
The author is a editor and writer for a textbook publishing company. She argues that there are pros and cons of the system that is in place now, as well the new proposed flat tax system. With the flat tax system it would be easier for businesses and individuals because the tax would be simpler making taxes easier. There would be more drawbacks with the flat tax system such as: fewer jobs for accountants—no tax deductions. States would also be allowed to implement their own taxes. For those reasons they believe that the current tax system is the best system and people would not support a flat tax. The circumstances that cause the chapter to be written is that there could be a need for new textbook to be written. The purpose of the article is to educate students about the government, especially in America, this chapter was about taxation. The audience are students of either history or politics. He believes it will not be used in America: “The plans sound straightforward and have much to recommend them. But convincing voters and taxpayers to embrace them is a monumental task. People complain about their taxes, and the thought of taxation taking on a radically different form is a lot for people to
Most legislation originates from governmental departments and agencies. In committees, a majority vote decides and often, compromise must be reached in order for a bill or law to survive committee action. This frequently requires that a delegate alter his position in order to achieve a compromise. This compromise may or may not reflect the wishes of the people he/she represents. The Modern Bureaucracy in the United States serves to administer, gather information, conduct investigations, regulate, and license.
s had with this topic. Following are summaries of major pronouncements dealing with accounting for income taxes.
First, in the long process of a bill becoming a law is introducing a bill. After someone from Congress in either chamber has come up with an idea for a bill they must introduce it. For members of the House of Representatives this is easy. All they have to do is put their idea in a mahogany box at the front of the chamber called the hopper. Now for a Senator to introduce a bill they must either hand it to the clerk of the Senate or they must talk about it in a presentation to their peers in a floor speech. Sometimes though Senators can cut down this process by adding their bill as an amendment to legislation that is already being processed. This saves them a lot of time. Also, new ideas for bills are labeled depending on what chamber they come from. Bills from the house will always be labeled with an H.R. with its number behind it. Well bills from the Senate will always be labeled with an S. followed by its number.
The United States government braces its power among three powerful branches, legislative, executive and judicial. These branches interact with one another to establish authority that is strong, yet equal to have power over the country. Each branch pursues certain responsibilities and duties to operate in an efficient and effective manner in which society upholds. The executive, legislative and judicial branches all interact amid each other to validate accuracy of the nation’s most powerful law of the land, the Constitution. It is important to know how these branches interact with each other to learn how a bill becomes a law. Reflecting on how the three branches promote a balance of power that is constructive to include the agendas and electoral roles that also plays a vast part in the government’s operation.
Before a law is passed it spends a great deal of time in the hands of officials in Congress, and even
Taxation has evolved throughout history as a method of funding government functions. The US government began taxing its people by imposing tariffs on certain items such as liquor, tobacco, sugar, and legal documents. Currently, there are taxes on almost every function. The IRS regulates income tax laws, central appraisal districts control property tax values, and there is a state sales tax on most purchases across the country. Taxes are difficult, if not impossible, to avoid. Benjamin Franklin stated “'in this world nothing can be said to be certain, except death and taxes” (Isaacson 463). Revenues from property taxes are used to fund public schools, hospitals, and local governments. I will discuss the history of property taxes and compare the Texas property tax rate to the rest of the country. Property taxes are more efficient than income tax and a better way for local governments to collect revenue from taxpayers.