We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Tax Accounting Article Research and Synopsis Writing - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Tax Accounting Article Research and Synopsis Writing"
The Internal Revenue Service has the power to reclassify certain S corporation distributions as wages, an action that profoundly affects on the amount of cash shareholders ultimately receive. The Service scrupulously monitors irregularities in this area, especially salaries that approach zero.
Download full paper
Polish This Essay
Tax Accounting Article Research and Synopsis Writing
Read TextPreview

Extract of essay "Tax Accounting Article Research and Synopsis Writing"

Download file "Tax Accounting Article Research and Synopsis Writing" to see previous pages... The authors are concerned with the tendency to pay extremely low salaries to shareholder-employees. The IRS sternly educated S corporations on the proper levels of compensation, and the distinguished tax law as applied to S corporations vs. partnerships. The courts tended to rule in favor of raising shareholder-employee wages.
Let us write or edit the essay on your topic "Tax Accounting Article Research and Synopsis Writing" with a personal 20% discount.. Try it now

When S corporations are found guilty of shirking salary payments, the IRS may subsequently collect recovered FICA and FUTA taxes, interest, failure to file penalties, late deposit penalties, and negligence penalties for failing to try hard enough to adhere to the Tax Code.
The point of contention in these cases hinges upon how the term 'wages' is defined. Taxpayers have give themselves too much latitude in this area. When discussing these cases, the courts felt a duty to examine their financial "substancerather than their legal form." Fellows and Jewell emphasized that deviations from equitable salary payments to S corporation shareholder-employees will no longer be tolerated.
Although the Revenue Reconciliation Act provided an amended approach to tax calculation, Cash and Dickens point out that its repercussions are not all favorable to corporations. This tax amendment required that beginning in 1990, the Alternative Minimum Tax (AMT) would be figured from adjusted current earnings, rather than regular taxable income. Further, taxpayers must figure Adjusted Current Earnings (ACE) each year as a prerequisite to applying the AMT.
Deductions to Adjusted Current Earnings that decrease profits and earnings, such as federal taxes and dividends, are disallowed because they are not subtracted when AMTI is calculated.
An alternative minimum tax depreciation calculation depends on several factors, such as when a particular item was first used. Two methods used are the 150% declining balance technique and the double declining technique.
Cash and Dickens emphasize that depreciation is the most important "special rule" in figuring Adjusted Current Earnings. The Alternative Depreciation System (ADS) is used for all three of "regular tax purposes," Adjusted Current Earnings and Alternative minimum Tax. Choosing the Alternative Depreciation System can be a boon to corporations who are required to pay the Alternative Minimum Tax every year. ADS is also helpful to those companies who do not possess the time or money to make complex alternate calculations.
Deferring taxes and accelerating deductions are both desirable privileges for corporate taxpayers, for obvious reasons. It seems counterintuitive, but the authors suggest reversing these behaviors. Income should be declared in years qualifying for a 20% tax rate, and deductions put off until the corporation reaches a 38% tax rate.
On the whole, ...Download file "Tax Accounting Article Research and Synopsis Writing" to see next pagesRead More
Cite this document "Tax Accounting Article Research and Synopsis Writing"
  • APA
  • MLA
(“Tax Accounting Article Research and Synopsis Writing Essay”, n.d.)
Tax Accounting Article Research and Synopsis Writing Essay. Retrieved from https://studentshare.org/miscellaneous/1504253-tax-accounting-article-research-and-synopsis-writing
(Tax Accounting Article Research and Synopsis Writing Essay)
Tax Accounting Article Research and Synopsis Writing Essay. https://studentshare.org/miscellaneous/1504253-tax-accounting-article-research-and-synopsis-writing.
“Tax Accounting Article Research and Synopsis Writing Essay”, n.d. https://studentshare.org/miscellaneous/1504253-tax-accounting-article-research-and-synopsis-writing.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Tax Accounting Article Research and Synopsis Writing"
Accounting for Income Tax
In situations where transactions are accounted for outside profits or loss, this standard has offered specific provisions. In case of the transactions that are recognised directly in equity, any associated tax implications are also recognised directly in equity, while those that are recognised in comprehensive income have their associated tax implications recognised in comprehensive income.
6 Pages(1500 words)Essay
Tax Law & Accounting
In 1939 Congress codified the Federal tax laws" ("Tax Law and Accounting," 2009). The aspect of modern income tax statutes that undeniably upset people the world over is that the tax law continually changes. Not only that, but it happens to be very complicated.
4 Pages(1000 words)Essay
Income tax accounting Essay
Interest paid on money to buy or carry investment property that produces taxable income is also deductible on Schedule A, but under section 163(d) the deduction cannot exceed the net investment income. Commissions and other costs of acquiring or disposing of securities are not deductible but must be used to figure gain or loss upon disposition of the securities.
2 Pages(500 words)Essay
Income tax accounting
For tax year 2005, the maximum amount of EITC a qualifying worker with one child can receive is $2,662. For two or more children under one's care, the maximum amount is $4,400. For workers with no children, the maximum amount of EITC is only $399 (Tax Credit Resources, n.d.).
2 Pages(500 words)Essay
Article Synopsis
The study is an attempt to find out if these factors can be used to generalize the success of Asian businesses as reiterated in previous
2 Pages(500 words)Essay
Tax accounting
Regressive tax is a tax levied in such a way that as the amount subject to taxation increases the tax rate decreases. In other words, a regressive tax asserts a greater burden on the poor than on the wealthy people — there is an inverse relationship
5 Pages(1250 words)Essay
Accounting - Tax Research Case
The cost of the new system includes doorknobs, locksets, keycard, an encoder, installation, and training for the lab employees. Conveniently, that was the only asset placed in service that year. In June of 2009, RL sold the facility building to the US government as the
4 Pages(1000 words)Essay
Tax Accounting Questions. Assignments
The main difference is that GAAP measures revenues and expenses while income tax accounting measures gross income and deductions. Under the GAAP, the matching principle records revenue and losses
12 Pages(3000 words)Essay
Article synopsis
The major concern of the authors is how sexism is included in these games and how do they form a part of this media. Due to the increasing popularity of games and magazines that give more importance to gaming, the compulsion to include these
2 Pages(500 words)Essay
Tax Accounting II Case
The fact that he asked his CPA subsequently about the possible deduction was a proof of that good faith. After inquiry, it was only at that point when the accountant denied having given consent on the prior claim for deduction made. In fact, he did not hide it to
2 Pages(500 words)Essay
Let us find you another Essay on topic Tax Accounting Article Research and Synopsis Writing for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us