Taxation Concepts and Research - Case Study Example

The Constitution awards Congress the mandate to raise money to maintain the government and pay national military force and debts. The house congress will put forward tax legislation that is identified as of importance by the legislative staff to the House committee members (Nichols, 2013). Committee members take part in an election to determine the amendments and recommendations that should be reported to the House. The speaker schedules the bill for deliberation on the floor for presentation at first reading. In the second reading, debate is minimal and specific amendments are either accepted or rejected. Upon voting, a successful bill turns into a House Act and is sent to the Senate for further consideration.  Similar processes are followed in the Senate by referring the bill to the finance committee for further analysis. Upon agreement of the bill by both houses, it is then passed to the president for approval. Once the law is enacted, the IRS undertakes implementation. The most important phase of the whole process is the enforcement stage as many taxpayers endeavor in tax evasion. For example, excise duty imposed on alcoholic beverages is realized after it is enforced. As such, the Tax and Trade Bureau is responsible for enforcing the tax law; hence, it is of importance in terms of revenue collection by the treasury. In addition, the importance of excise duty on imports is only as effective at its enforcement. At this stage, the reduction of imports makes it evident that the tax law is efficient.

The sole purpose of the IRS is to investigate any loopholes that taxpayers exploit to avoid tax payments. Therefore, in defending my client against tax audit it is necessary to ensure that the client maintains adequate records to ensure the client avoids additional tax, penalties, and interest. IRS agents usually check for an error in the supporting documents rather than a line-by-line in-depth examination of returns. An example, professional real estate investors have a right to claim write-offs and losses while a normal investor has no right. Therefore, if an individual claims to be conversant with such investments but his investments do not fall within the range that is professional, the IRS agents claim for an additional substantiation of the status. Therefore ensuring that the client has his perspective constant and clear is fundamental in dealing with IRS agents.