S CORPORATIONS AND IRC SECTION 199A:INCORPORATING EXCEL INTO TAX PLANNING SCENARIOS

2020 ◽  
Author(s):  
Lauren A Cooper ◽  
Kimberly G. Key ◽  
Mollie E. Mathis
Keyword(s):  
Decision Making ◽  
Tax Planning ◽  
Cost Recovery ◽  
Internal Revenue ◽  
Flow Through ◽  
Business Income ◽  
Tax Research ◽  
Electronic Spreadsheet

This case requires students to take a multi-year tax planning perspective for an S Corporation owner-employee. The case emphasizes the new Internal Revenue Code (IRC) {section sign}199A deduction (qualified business income (QBI) deduction) and electronic spreadsheet skills. The case also includes reasonable compensation and cost recovery issues. Students perform tax research to identify factors relevant to QBI deductions and apply this research to make QBI deduction calculations. Then, students demonstrate knowledge of the flow-through entity by incorporating IRS rules and logic into electronic spreadsheets. Finally, students improve their tax-related decision-making by evaluating scenarios related to the QBI deduction in a flow-through entity setting.

Contextual Features of Tax Decision-Making Settings

1999 ◽  
Vol 21 (s-1) ◽  
pp. 63-73 ◽  
Author(s):  
Anne M. Magro
Keyword(s):  
Decision Making ◽  
Information Processing ◽  
Tax Planning ◽  
Judgment And Decision Making ◽  
Contextual Features ◽  
Tax Professionals ◽  
Planning Condition ◽  
Tax Research ◽  
Planning Problems

Prior research in psychology and accounting suggests that features of the decision-making task and context affect information processing, yet the decision-making context is often ignored in tax judgment and decision-making research. Two primary decision contexts in the tax setting are planning and compliance. If these two contexts differ on significant features, the information processing of tax professionals in the settings also is likely to differ. An analysis of the characteristics of tax planning and compliance contexts suggests that planning problems are generally characterized by greater complexity, ambiguity, and justifiability demands than are compliance problems. Experienced tax professionals' knowledge of these differences in complexity, ambiguity, and justifiability demands of problems in the planning and compliance contexts was tested in an experiment in which decision-making context was manipulated. Each participant rated the complexity, ambiguity, and justifiability demands of six research cases. As predicted, participants in the planning condition rated the cases as higher in complexity, ambiguity, and justifiability demands than did participants in the compliance condition. Behavioral implications of these differences were demonstrated in that managers in the planning context budgeted significantly more time for staff to complete tax research than did those in the compliance context.

scholarly journals Caravan Traders: A Tax Research Project For Pass-Through Business Entities

2010 ◽  
Vol 6 (6) ◽  
Author(s):  
Monique O. Durant
Keyword(s):  
Tax Planning ◽  
Practice Research ◽  
Analytical Skills ◽  
Hypothetical Data ◽  
Beneficial Impact ◽  
Flow Through ◽  
Business Entities ◽  
Pass Through ◽  
Tax Research ◽  
The Impact

This paper presents a tax case simulating a real-world experience in the area of partnership or flow-through entity taxation.  Students are presented with an open transaction, hypothetical data and business objectives of the partners.  They are then requested to consider the tax rules and the impact on the parties based upon each of two options in order to determine the best business alternative.  In order to do this, they rely on knowledge learned in the typical partnership taxation course and practice research and analytical skills to synthesize the most optimum outcome.  Students are asked to deliver a tax memorandum that addresses a series of progressive issues, as well as two excels worksheets which outline the tax impact under each of the two options.  As a result of this assignment, students discover the value of prudent and skillful tax planning and the beneficial impact that they can have on the financial affairs of their clients.

TAX PLANNING DENGAN PEMILIHAN BENTUK BADAN USAHA PADA PERUSAHAAN PERSEORANGAN

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Sri Andriani
Keyword(s):  
Decision Making ◽  
Income Tax ◽  
Tax Planning ◽  
Tax Burden ◽  
Taxable Income ◽  
Proper Form ◽  
Qualitative Descriptive ◽  
Business Entities ◽  
Tax Payers ◽  
Selection Of

<p>Tax Planning is one of the ways to minimize the tax burden within the company including in the selection of the proper form of business to run the company's business, namely with the mepertimbangkan of tariff revenue, a reduction in taxable income (PKP), the liability of income recognition, bookkeeping, tax collection obligations, and accountability of tax debt. Minimization of tax burden can be done in various ways, ranging from a still frame of the taxation to which break the rules of taxation.</p><p>Tax planning that has made the company especially with elections to form a business entity. This type of research is qualitative, descriptive. The results of this research indicate that cigarette companies do business entity forms of election to save taxes by choosing the form of individual business entities. The magnitude of the rate of income tax that will be payable every year between Individual Taxpayers with the tax payers the Agency is different, i.e. Individual Taxpayers using Taxpayer tariff progersif while the Agency using the fixed fee. Individual companies have had some keuntunngan among other things a faster decision making does not take into account the interests of many parties.<br /><br /><br /></p>

1. Everything has structure

2014 ◽  
Author(s):  
David Blockley
Keyword(s):  
Decision Making ◽  
Structural Engineering ◽  
Fitness For Purpose ◽  
Form And Function ◽  
Environmental Criteria ◽  
Flow Through ◽  
And Function ◽  
Relationship Of ◽  
The Relationship

‘Everything has structure’ considers the fundamental nature and role of structure and the relationship of structural engineering with other engineering disciplines and with architecture. Decision making is driven by the purpose of a man-made structure and how ‘fitness for purpose’ is realised. There is a need to understand how forces flow through a structure in order to ensure it meets its primary purpose of being strong and safe whilst at the same time meeting many other needs such as affordability, aesthetic, and regulatory and environmental criteria. The best structures are a harmony of architecture and engineering—where form and function are one and the flow of forces is logical.

Discussion of Contextual Features of Tax Decision-Making Settings

1999 ◽  
Vol 21 (s-1) ◽  
pp. 74-77
Author(s):  
C. Bryan Cloyd
Keyword(s):  
Decision Making ◽  
Research Question ◽  
Tax Compliance ◽  
Essential Elements ◽  
Tax Planning ◽  
Professional Judgment ◽  
Contextual Features ◽  
Tax Professionals ◽  
Research Questions ◽  
Tax Practice

Tax practice has evolved over the past decade from being predominantly concerned with tax compliance to a major focus on tax planning. Significant challenges for researchers interested in tax professional judgment and decision making (JDM) are (1) understanding the current environment of tax professionals, (2) identifying research questions that are relevant to this environment, and (3) appropriately capturing the essential elements of the current environment in the experimental setting. The research question addressed in Magro (1999) is related to this first challenge—understanding the current environment or context in which tax professional JDM occurs. Specifically, the research question addressed in this study is whether experienced tax professionals perceive differences between certain contextual features of tax-planning and compliance tasks.

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.

Instructional Resources for Tax Education: Communicating the Complexities of Capital Gains for Individuals After the 1997 and 1998 Tax Acts

1999 ◽  
Vol 14 (1) ◽  
pp. 117-143 ◽  
Author(s):  
Nancy B. Nichols ◽  
John O. Everett ◽  
Richard Boley
Keyword(s):  
Tax Planning ◽  
Capital Gains ◽  
Internal Revenue Service ◽  
Instructional Resources ◽  
Planning Techniques ◽  
Teaching Tools ◽  
Internal Revenue ◽  
Tax Education

his article provides examples and teaching tools for presenting the new capital gains provisions for individuals under the Taxpayer Relief Act of 1997 and the Internal Revenue Service Restructuring and Reform Act of 1998. For students to gain an understanding of these new complexities, they must work with examples and planning techniques that incorporate the new law in a meaningful way. This article provides two summary tables, three diagrams and nine computations or tax-planning mini-cases to assist tax professors in accomplishing this objective.

Capricious Application of the Law: IRS Disregard of Revenue Rulings

2003 ◽  
Vol 1 (1) ◽  
pp. 64-74 ◽  
Author(s):  
Thomas M. Porcano ◽  
Jennifer L. Porcano
Keyword(s):  
General Public ◽  
Tax Compliance ◽  
Tax Planning ◽  
Internal Revenue Service ◽  
Tax Law ◽  
Historical Aspect ◽  
Internal Revenue ◽  
The Law ◽  
Full Force

The Internal Revenue Service (IRS) publishes Treasury Regulations and revenue rulings, in part, to ease compliance problems for taxpayers by providing the IRS's interpretation of (and position on) tax law. The general public should be able to rely on these pronouncements when engaging in tax-planning and/or tax-compliance activities. As such, the IRS should consistently follow them. If the IRS takes a position contrary to these pronouncements and/or disregards them in pursuing an issue, then increased confusion results. In several instances, the IRS has chosen to ignore its revenue rulings or to consider them wrong even though the rulings continue to be in full force. This article identifies situations where the IRS has chosen to disregard its revenue rulings. The historical aspect of each situation where the IRS disregarded its revenue rulings is presented, along with the courts' responses to this action. Implications and conclusions of the IRS's actions are discussed.

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