Running a Tax System

2020 ◽  
Author(s):  
Leonard E. Burman ◽  
Joel Slemrod
Keyword(s):  
Internal Revenue Service ◽  
Tax Administration ◽  
Tax System ◽  
Federal Level ◽  
Internal Revenue ◽  
System P ◽  
The U.S

How much does it cost to run the U.S. tax system? The easy part of answering this question is to add up the budgets of the various tax administration agencies across the country. At the federal level, that would be the Internal Revenue Service, or...

Tax Decision Making under the New Burden of Proof Rules

2004 ◽  
Vol 26 (2) ◽  
pp. 23-42 ◽  
Author(s):  
Anne M. Magro ◽  
Beth Stetson
Keyword(s):  
Decision Making ◽  
Burden Of Proof ◽  
Internal Revenue Service ◽  
Popular Press ◽  
Tax System ◽  
Internal Revenue ◽  
Playing Field ◽  
Proof Rules ◽  
Tax Professionals

In the late 1990s, controversy over alleged Internal Revenue Service abuses and concern about the extent of the agency's power over taxpayers led to the passage of new rules governing relations between the IRS and taxpayers. An important element of this new set of rules was I.R.C. § 7491, which purported to shift the burden of proof in civil tax cases from the taxpayer to the IRS. Commentators generally agreed that the shift would have little effect on the outcome of cases, but the popular press touted the new provision as an important step to level the playing field between the parties. We conduct an experiment in which we manipulate the applicability of I.R.C. § 7491 and measure role in the tax system (taxpayer versus tax professional). As predicted, we find that taxpayers assess a higher likelihood of success in litigation when the anticipated burden of proof rests with the IRS than when the anticipated burden of proof rests with the taxpayer. Taxpayers who believe that the IRS bears the burden of proof also assess a higher likelihood of success than do tax professionals, regardless of the applicability of I.R.C. § 7491. This increased perceived likelihood of success in litigation translates to an increased willingness on the part of taxpayers to engage in an unsound tax-motivated transaction.

GlaxoSmithKline Plc.: International Transfer Pricing and Taxation

2007 ◽  
Vol 22 (4) ◽  
pp. 749-759
Author(s):  
Mahendra R. Gujarathi
Keyword(s):  
Multinational Corporations ◽  
Intangible Assets ◽  
Transfer Pricing ◽  
Tax Credits ◽  
Internal Revenue Service ◽  
Internal Revenue ◽  
The U.S

This comprehensive case intends to develop your understanding of the complexities involved in the international transfer pricing and taxation of intangible assets. The backdrop for the case is GlaxoSmithKline's $5.2 billion settlement in 2006 with the U.S. Internal Revenue Service. You are required to provide possible rationales for the positions advocated by the Company as well as the IRS. You are also required to present calculations under different transfer pricing methods, identify the most appropriate method, compute Foreign Tax Credits for different scenarios, and suggest possible strategies for multinational corporations to reduce the odds of negative settlements with tax authorities.

scholarly journals The Impact of Continuous Training on Maximizing Efficiency in Tax Administration: The Case of a State Internal Revenue Service (SIRS) in the North Central Region of Nigeria

2018 ◽  
Vol 3 (1) ◽  
pp. 165-172
Author(s):  
Muritala Awodun, PhD ◽  
Faizu Edu, PhD
Keyword(s):  
Employee Commitment ◽  
The State ◽  
Internal Revenue Service ◽  
Tax Administration ◽  
Continuous Training ◽  
Internal Revenue ◽  
The North ◽  
And Performance ◽  
Revenue Administration ◽  
The Impact

The purpose of this study is to establish the role of continuous training in maximizing efficiency in tax administration using the case of a State Internal Revenue Service (SIRS) in the North Central Region of Nigeria. The study examined the strategies adopted for continuous training by the SIRS and subsequently measured the impact of these strategies on the performance of all levels of management (low, middle and top) of the SIRS under focus. The SIRS identified the need for training from its inception and built into its process the entry training programme (of 3 months) for all staff, the monthly field feedback and training (of a day monthly) for all staff, directorates’ regular technical training, professional trainings, and leadership and management trainings (both local and international). These schedule five stage trainings have become a closely knitted continuous training strategy that has improved the skills and capacities of the employees of the SIRS. To ascertain the extent to which the above have impacted on the employees, the SWOT Analysis was adopted along with the appraisal of five set of questionnaires applied to 642 staff of the SIRS present at a particular month field feedback session. The five set of questionnaires were designed to measure; (1) the state of change readiness of employees of the SIRS for service excellence, (2) the state of change thinking of employees of the SIRS for service excellence, (3) the state of resistance to change by the employees of the SIRS, (4) the state of resistance to going through the process of change by the employees of the SIRS, and (5) the state of resistance to leaving the current state for the desired state of excellence. All these are targeted towards measuring the state of readiness for change, through continuous training, on the employees’ commitment, efficiency and performance. The above is in addition to the analysis of the individual strengths and weaknesses that culminates in the organizational strengths and weaknesses, including the environmental opportunities and threats which have a significant role to play on the organizational performance. The findings revealed that between 73 - 87 percent of the staff of the SIRS are change ready, with positive change thinking mentality, not resistant to change, not resistant to going through the change process, and are not resistant to leaving the current state for the desired state of excellence. Ultimately, the study concludes that there is a positive relationship between continuous training, and employee commitment and job satisfaction, on the one hand, and continuous training and performance excellence as relating to efficiency and effectiveness in tax administration, on the other hand. This study is a pioneer one that extends the employee commitment debate to the Internal Revenue Service, using this SIRS as a case study. It provides an explanation, with empirical evidence, by demonstrating that training extends direct positive effect on employee commitment in revenue administration. The study also demonstrates that, in the revenue administration, job satisfaction helps to transmit the effect of continuous training on employee commitment and performance excellence.

Organizations and Governance

2013 ◽  
Author(s):  
Tom Holland
Keyword(s):  
Social Service ◽  
Service Organizations ◽  
Internal Revenue Service ◽  
Governing Boards ◽  
Social Service Organizations ◽  
Internal Revenue ◽  
Strategic Goals ◽  
The U.S

Most social service organizations are identified by the U.S. Internal Revenue Service as nonprofits, designated as 501c3 organizations. They are overseen by governing boards, which ensure that all the activities of the organization contribute to advancing its mission. These boards also identify strategic goals, hire and guide the executive, oversee the organization's finances, help raise funds for it, and ensure accountability to stakeholders.

Taxes

2020 ◽  
pp. 146-151
Author(s):  
Harold L. Cole
Keyword(s):  
Historical Perspective ◽  
Corporate Taxation ◽  
Cross Sectional ◽  
Tax System ◽  
System P ◽  
The Cross ◽  
The U.S

This chapter presents an overview of the U.S. tax system focusing on individual and corporate taxation and how that relates to the taxation of capital and income. Some historical perspective is provided as well evidence on the cross-sectional implications of our tax system.

scholarly journals Taxation of Virtual World Economies: A Review of the Current Status

2014 ◽  
Vol 7 (1) ◽  
Author(s):  
Jamie S. Switzer ◽  
Ralph V. Switzer
Keyword(s):  
Virtual Worlds ◽  
Virtual World ◽  
Market Value ◽  
Internal Revenue Service ◽  
Current Status ◽  
Government Officials ◽  
Internal Revenue ◽  
Goods And Services ◽  
Fair Market Value ◽  
The U.S

The taxation of virtual world economies is uncharted terrain, one that both researchers and government officials are just beginning to scrutinize. Taxes are inevitable in any economy, but what about the increasingly lucrative virtual world economies? The market for virtual goods and services is estimated to be in the millions of dollars, so it is no wonder that governments are beginning to take notice. Experts are divided as to the feasibility of taxation of virtual economies. Most experts agree however that there is significant ambiguity in the current U.S. Internal Revenue Code with respect to virtual worlds. It is unclear if transactions occurring in a virtual world are taxable in the U.S., and the Internal Revenue Service has to date not offered any strong guidance regarding the issue.In this article, we argue that virtual transactions are already subject to taxation under current U.S. law, at any point in time that the U.S. Internal Revenue Service should decide to enforce the current law, whether taking place in game worlds or unscripted worlds. This would include virtual-to-virtual transactions as well as virtual-to-real transactions, as the issue at hand is whether or not virtual activity is taxable, regardless of realization, because all goods and services have a fair market value.

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