Mr. and Mrs. Smith: A Student Introduction to Federal Tax Compliance and Documentation

2015 ◽  
Vol 31 (1) ◽  
pp. 119-132 ◽  
Author(s):  
Michaele L. Morrow ◽  
Shane R. Stinson
Keyword(s):  
Communication Skills ◽  
Professional Practice ◽  
Income Tax ◽  
Tax Compliance ◽  
Personal Income Tax ◽  
Initial Information ◽  
Face To Face ◽  
Client Advocacy ◽  
Tax Practice

ABSTRACT In this case, students assume the role of new accounting staff tasked with the preparation of a personal income tax return and supporting documentation for a client of their firm. Students are provided prior year work papers and client communications, a copy of the prior year's tax return, as well as a letter and supporting documents from the client for the current year. To complete the case, students generate questions based on the initial information provided, meet face-to-face with the client, and roll forward a set of electronic work papers before submitting a complete current year engagement file for senior review. This case adds work papers and client interaction to the traditional tax compliance case to reinforce both the technical and communication skills valued in professional practice. The formulation of questions for the client also allows students to practice discussing technical topics in a non-technical manner and underscores the required balance between attitudes of client advocacy stressed in professional tax practice and legal requirements for “good-faith” tax return reporting. This case is appropriate for an individual income tax course at either the undergraduate or graduate level, and can be easily adapted to increase or decrease difficulty.

scholarly journals PERSONAL INCOME TAX: EXPERIENCE OF FOREIGN COUNTRIES

2019 ◽  
pp. 76-86
Author(s):  
Oksana TULAI ◽  
Andrii YAMELYNETS
Keyword(s):  
Low Income ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Compliance ◽  
Personal Income ◽  
Personal Income Tax ◽  
Foreign Experience ◽  
Advantages And Disadvantages ◽  
Foreign Countries

Introduction. In the current conditions of the integration movement of Ukraine to the European Union and the reform of the institutions of state power, the issue of studying foreign experience of the system of taxation of individuals' incomes is actualized. The application of effective practices of other states will contribute to increasing the fiscal role of the personal income tax in Ukraine, reducing social inequality and increasing the welfare of the population. Purpose. The purpose of the article is to find out the features, trends and problems of the functioning of the personal income tax in foreign countries. Results. The article deals with the foreign experience of functioning of the system of personal income taxation. The role and role of PIT in the EU and OECD countries is shown. The proportional and progressive approach to taxation of this tax is considered, their key advantages and disadvantages are determined. An analogy has been made between the European states, the OECD member states and Ukraine. The objective necessity of establishing a non-taxable minimum or partial exemption of citizens' incomes from taxes in the context of support of low-income categories of the population and ensuring social justice is substantiated. Conclusions. It is concluded that in developed countries, the progressive system of taxation of the PIT along with the minimum non-taxable minimum is an effective tool for generating budget revenues and solving social inequalities in society. Instead, third-world states can not use this mechanism in a qualitative way due to significant tax compliance problems. They apply a proportional taxation system for PIT that minimizes tax evasion and international competitiveness.

Determinants of Personal Income Tax Compliance: Perception of Nigerian Tax Payers

2015 ◽  
Author(s):  
Edosa Joshua Aronmwan ◽  
Ehichioya Imobhio ◽  
Famous Izedonmi
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Payers

scholarly journals Personal Income Tax Compliance at the Regional Level: The Role of Persistence, Neighborhood, and Decentralization

2020 ◽  
pp. 016001762094281
Author(s):  
Julio López-Laborda ◽  
Jaime Vallés-Giménez ◽  
Anabel Zárate-Marco
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Fiscal Decentralization ◽  
Tax Compliance ◽  
Personal Income ◽  
Extensive Literature ◽  
Personal Income Tax ◽  
Institutional Variables ◽  
The Public ◽  
The Individual

This article quantifies personal income tax compliance by regions for the first time in Spain and identifies the factors explaining differences in tax compliance between regions, an aspect that has scarcely been analyzed in the literature. To this end, and in addition to the dynamic and spatial components considered by Alm and Yunus, this article considers the variables included in the classical tax evasion model of Allingham and Sandmo, as well as tax morale and political-institutional variables, including those linked to the country’s fiscal decentralization. The results obtained confirm, on one hand, those reached in the very extensive literature studying tax evasion from the individual perspective (including the importance of the dynamic element) and, on the other, the relevance of the spatial component in explaining tax compliance, so that greater or lesser tax compliance is partly explained by factors such as the tax behavior of neighbors or how those neighbors are treated by the public sector.

scholarly journals O papel dos saberes não matemáticos na Modelagem Matemática: o estudo do cálculo do Imposto de Renda The role of non-mathematical knowledge in Mathematical Modeling: the study of the calculation of income tax

2019 ◽  
Vol 20 (3) ◽  
Author(s):  
Claudia Fernandes Espirito Santo ◽  
Renato Borges Guerra
Keyword(s):  
Mathematical Modeling ◽  
Mathematical Models ◽  
Income Tax ◽  
Mathematical Knowledge ◽  
Personal Income ◽  
Future Research ◽  
Personal Income Tax ◽  
Preliminary Results ◽  
Anthropological Theory

Este artigo trata sobre a indispensabilidade de saberes não matemáticos para o uso de modelos matemáticos sobre problemas em contextos concretos a partir de pressupostos da Teoria Antropológica do Didático. O modelo praxeológico misto é proposto como dispositivo metodológico de análise. Análise do modelo do cálculo do Imposto de Renda Pessoa Física em situação demonstra a potencialidade do dispositivo para fazer emergir os saberes não matemáticos que fundamentam os modelos matemáticos sobre contextos concretos. Resultados obtidos preliminares apontam a indispensabilidade dos saberes não matemáticos da situação para o uso pertinente dos modelos matemáticos em situação e encaminham pesquisas futuras. <br>This article addresses the indispensability of non-mathematical knowledge for the use of mathematical models on problems in concrete contexts based on the assumptions of the Anthropological Theory of the Didactic. The Mixed Praxeological Model is proposed as a methodological analysis device. The analysis of the model of the calculation of Personal Income Tax in situation demonstrates the potentiality of the device to emerge the non-mathematical knowledge that base the mathematical models on concrete contexts. Preliminary results indicate the indispensability of the non-mathematical knowledge of the situation for the pertinent use of mathematical models, and forward future research.

The Marriage of Sharon and Henry Sawbones: A Forensic Case Illustrating the Use of a Tax Return in a Litigation Advisory Services Context

2015 ◽  
Vol 31 (3) ◽  
pp. 347-354 ◽  
Author(s):  
Jeffrey J. Quirin ◽  
David O'Bryan
Keyword(s):  
Child Support ◽  
Income Tax ◽  
Personal Income ◽  
Lead Author ◽  
Personal Income Tax ◽  
Actual Case ◽  
Advisory Services ◽  
Additional Information ◽  
Forensic Accounting

ABSTRACT This case is designed for use in a forensic accounting curriculum at the undergraduate or graduate level. The case contains no allegations of fraud. Rather, it illustrates the subset of forensic accounting referred to as litigation advisory services and is based upon an actual case that was investigated by the lead author working as a litigation support consultant. The case utilizes the problem-based learning approach wherein students are put in the role of the forensic accountant and must request additional information from the instructor. Students must first review a personal income tax return to develop a list of financial documents that would serve as a discovery request when assisting a family law attorney and his divorcing client. Using the information obtained from their requests, students must then prepare an income exhibit and an asset/liability exhibit that will support the client's need for a division of the marital estate, spousal maintenance, and child support. The process of using a completed income tax return to reconstruct the couple's asset and income profile not only mirrors the real-world engagement, but also complements and reinforces any prior courses in taxation. Student feedback on the case was extremely positive across all dimensions. Students reported having a better understanding of the role of a forensic accountant in the litigation process and enhanced abilities in analyzing a personal income tax return.

ROLE OF INCOME TAX OF INDIVIDUALS IN THE FORMATION OF INCOME OF THE BUDGET OF THE AMUR REGION

2021 ◽  
Author(s):  
K.A. Birilo ◽  
◽  
O.S. Kolesnikova ◽  
Keyword(s):  
Income Tax ◽  
Amur Region ◽  
Personal Income ◽  
Personal Income Tax ◽  
Current Trends ◽  
Regional Budget

The article analyzes the current trends in the development of personal income tax in the Amur Region. The role of this tax in the formation of regional budget revenues is revealed.

scholarly journals Personal income tax: practice and problems of management in local budgets of Ukraine

2019 ◽  
pp. 169-174
Author(s):  
Nataliia Karpyshyn ◽  
Olha Nipialidi
Keyword(s):  
Community Involvement ◽  
Asset Management ◽  
Local Governments ◽  
Income Tax ◽  
Local Level ◽  
Personal Income ◽  
Personal Income Tax ◽  
Local Budget ◽  
Decentralization Reform ◽  
Tax Practice

Purpose. The aim of the article is investigation of the practice of tax income on individuals in the local budgets of Ukraine in the context of decentralized reform in order to identify the most pressing problems of collecting PITs and develop a proposal to increase its fiscal role at the local level. Methodology of research. The following methods are used to achieve this goal: analysis, synthesis and generalization – in the processing of literary, statistical, legislative and Internet sources on the topic of research; methods of systematization and generalization of data, comparison and detail – when conducting analysis of budget indicators; graphical and tabular methods – for visual representation of the processed data; abstract and logical method – to summarize the material presented and formulate conclusions. Findings. The fiscal role and factors of PIT growth in the local budgets of Ukraine during the period of decentralization reform have been determined. Local governments are found to be underutilizing the potential of PITs to replenish local budgets. The main reserves for the growth of local budget revenues from the PIT are substantiated, namely: solving the problem of illegal employment with the aim of legalizing income for taxation, improving cooperation with the SFSU bodies and improving the efficiency of tax control; improving community asset management; increasing transparency and enhancing community involvement in community governance. Originality. The main directions of activity of local self-government bodies that will contribute to the gradual increase in the volume of revenues from the personal income tax in the revenues of local budgets of Ukraine are identified. Practical value. The results of the study can be used in the activities of local governments and local financial authorities in developing a policy of increasing PIT (personal income tax) revenues in local budget revenues. Key words: personal income tax; local budgets; local budget revenues; local governments.

Do Tax Professionals Act Like Auditors when Evaluating Tax-Related Audit Evidence?

2021 ◽  
Author(s):  
Donna D. Bobek ◽  
Laura N. Feustel ◽  
Scott D. Vandervelde
Keyword(s):  
Income Tax ◽  
Team Member ◽  
Financial Statement ◽  
Functional Area ◽  
Professional Skepticism ◽  
Tax Professionals ◽  
Audit Evidence ◽  
Client Advocacy

The audit of the financial statement income tax accounts is ultimately the responsibility of the audit engagement team; however, tax professionals are often involved because of their knowledge of the tax functional area. Auditors are expected to exercise professional skepticism and independence when performing audits, while tax professionals are expected to be advocates for their tax clients. This study investigates whether the auditor and/or tax professionals’ typical role influences how they evaluate evidence on an audit engagement, especially when provided evidence by individuals with whom they are closely affiliated. The results of an experiment with experienced auditors and tax professionals, suggest that despite differing in their trait skepticism and client advocacy attitudes, tax professionals and auditors make similar judgments when in the role of an audit engagement team member. We also find evidence both auditors and tax professionals are more persuaded by individuals with whom they have a closer affiliation.

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