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Discusiions - Case Study Example

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The house congress will put forward a tax legislation that is identified as of importance by the legislative staff to the house committee members…
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Discusiions
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"Discusiions"

Download file to see previous pages Upon voting, a successful bill turns into a House Act and 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 stages 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 being 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 IRS is investigating any loopholes that taxpayers exploit to avoid tax payment. 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 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 of 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 ...Download file to see next pagesRead More
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