Is There a December Effect? Strategic Prepayments of Deductible State Income Tax

2010 ◽  
Vol 32 (2) ◽  
pp. 53-71
Author(s):  
John Shon ◽  
Stanley Veliotis
Keyword(s):  
Income Tax ◽  
Time Value Of Money ◽  
State Income Tax ◽  
Federal Income Tax ◽  
State Income ◽  
Tax Savings ◽  
Tax Payments ◽  
One Year ◽  
The Cost ◽  
Value Of Money

ABSTRACT: Individuals’ state income tax payments are deductible in the year paid for federal income tax purposes. This study investigates whether, and to what extent, individuals implement federal tax planning by prepaying state estimated income taxes before year-end, even though those payments are not due until January 15. Based on a study of 34 states’ aggregate data on estimated income tax receipts from individuals, we find strong evidence of this effect. We also find that this effect is increasing with the cost of state income tax payments. The results suggest that individual taxpayers take steps to reduce taxes by shifting deductions from one year to an earlier year and/or exploit the time value of money provided by accelerating federal tax savings by one year.

scholarly journals The Use Of Regression Analysis As Evidence In Litigating Tax-Related Issues

2011 ◽  
Vol 12 (3) ◽  
pp. 97
Author(s):  
B. Anthony Billings ◽  
D. Larry Crumbley
Keyword(s):  
Regression Analysis ◽  
Income Tax ◽  
Property Taxes ◽  
Court Decisions ◽  
Legal Analysis ◽  
State Income Tax ◽  
Tax State ◽  
Federal Income Tax ◽  
State Income

<span>Despite numerous published academic articles concerning the application of regression analysis as an accounting tool, its applicability as a tool in litigating tax matters has been largely ignored. This research documents the extent to which regression analysis has been used to adjudicate tax issues and points out conditions under which regression-based conclusions are considered legitimate evidence. A number of court decisions regarding federal income tax, state income tax and property taxes are reviewed to illustrate the extent to which regression analysis has been applied, its effectiveness, and implications for future adjudication of tax issues. Evidence from the reviewed court decisions indicates that regression analysis may be successfully used to uncover relevant facts, estimates or projections. However, the credibility of such evidence will depend on the observance of the underlying regression analysis assumptions and on the experts understanding of the phenomenon under study. The use of regression analysis to conduct legal analysis (for example, predicting the outcome of litigation) is of little utility in the courtroom.</span>

Forecasting State Income Tax Collections: A New Approach

1978 ◽  
Vol 6 (1) ◽  
pp. 67-91 ◽  
Author(s):  
David M. Reaume
Keyword(s):  
North Carolina ◽  
Income Distribution ◽  
Income Tax ◽  
The State ◽  
New Approach ◽  
State Income Tax ◽  
State Income ◽  
Complete Detail ◽  
The Law

This paper reports on an application of the microsimulation method to the estimation of income tax collections for the State of North Carolina. Detailed forecasts of Income distribution make it Possible to model the law in nearly complete detail. The model provides quarterly forecasts of collections disaggregated by withheld taxes, declarations payments, final payments, and refunds.

scholarly journals A Treatise on the Taxing Power, with Particular Application to the State Income Tax

1937 ◽  
Vol 46 (7) ◽  
pp. 1275
Author(s):  
Osmond K. Fraenkel ◽  
Walter K. Tuller
Keyword(s):  
Income Tax ◽  
The State ◽  
State Income Tax ◽  
State Income

scholarly journals A Treatise on the Taxing Power with Particular Application to the State Income Tax

1937 ◽  
Vol 26 (1) ◽  
pp. 170
Author(s):  
Walter L. Nossaman ◽  
Walter K. Tuller
Keyword(s):  
Income Tax ◽  
The State ◽  
State Income Tax ◽  
State Income

scholarly journals Pengaruh Moral Etika Pajak Penghasilan Terhadap Tax Avoidance Dengan Sosio Demografi Sebagai Variabel Moderasi

2019 ◽  
Vol 1 (2) ◽  
pp. 814-825
Author(s):  
Weggy Oktya Dwitra ◽  
Henri Agustin ◽  
Erly Mulyani
Keyword(s):  
Income Tax ◽  
Tax Avoidance ◽  
Moderating Variables ◽  
The People ◽  
Moral Ethics ◽  
State Income ◽  
Independent Variable ◽  
Tax Payments ◽  
The Relationship ◽  
Regression Tests

Taxes are the main source of state income and reception, and are used to increase the prosperity and welfare of the people as a whole. The income tax collection system currently provides loopholes for taxpayers to prepare reports on tax payments to a minimum as long as they do not deviate from the applicable legislation.Important issues in taxation include awareness of paying taxes, tax paying behavior, obedience in paying taxes and tax avoidance. In connection with this research conducted aims to examine empirically about: (1) The moral-ethics effect of income tax on tax avoidance, and (2) Socio-demographic relations on the moral-ethical influence of income tax on tax avoidance. In connection with this research conducted aims to examine empirically about: (1) The moral-ethics effect of income tax on tax avoidance, and (2) Socio-demographic relations on the moral-ethical influence of income tax on tax avoidance. The data needed in this research is obtained from a questionnaire filled in by the income taxpayer sample registered at the KPPP Padang, which consists of 100 taxpayers. The collected data was analyzed using simple and multiple linear regression tests and the MRA (Moderating Regression Analysis) test for moderating variables. The research results obtained are (1) Moral-ethics of income tax affects the intention of personal taxpayers to carry out tax avoidance income tax. (2) Socio Demography does not moderate the relationship between moral-tax ethics and personal taxpayer intentions to carry out tax avoidance income taxes. (3) Moral-Ethics of Income Tax and Socio-Demographic influence together towards Tax Avoidance. In addition Socio Demography is proven only as an independent variable (predictor) in relation to Tax Avoidance.

Revenue

2020 ◽  
pp. 225-260
Author(s):  
Richard B. Collins ◽  
Dale A. Oesterle ◽  
Lawrence Friedman
Keyword(s):  
Public Debt ◽  
Income Tax ◽  
The State ◽  
Property Taxes ◽  
Tax Structure ◽  
Bill Of Rights ◽  
State Income Tax ◽  
State Income ◽  
Public Revenue ◽  
The Many

This chapter highlights Article X of the Colorado Constitution, dealing with revenue. It is one of the constitution’s most distinctive sections Detailed provisions lay out the state’s tax structure. Sections 3, 3.5, and 15 are extensive rules for property taxes and their equalization across the state. Sections 4 and 5 exempt public, religious, and charitable property. Sections 17 and 19 authorize and define the state income tax. Section 20, the Taxpayers Bill of Rights or TABOR requires prior voter consent to new or increased taxes and public debt and for public revenue above specified formulas. It also forbids specified taxes. The chapter explains in detail the many legal disputes about interpretation of this section.

scholarly journals The Impact of Federal and State Income Tax Liabilities on Timber Investments in the Midwest and Northeast

2007 ◽  
Vol 24 (4) ◽  
pp. 245-251 ◽  
Author(s):  
Nathan R. Smith ◽  
Philip Bailey ◽  
Harry Haney ◽  
Debra Salbador ◽  
John Greene
Keyword(s):  
Income Tax ◽  
Tax Planning ◽  
Income Taxes ◽  
Forest Landowners ◽  
Middle Income ◽  
State Tax ◽  
State Income Tax ◽  
State Income ◽  
Lower Peninsula ◽  
The Impact

Abstract Federal and state income taxes are calculated for hypothetical forest landowners in two income brackets across 23 states in the Midwest and Northeast to illustrate the effects of differential state tax treatment. The income tax liability is calculated in a year in which the timber owners harvest $200,000 worth of timber. State income taxes ranged from highs of $13,427 for middle-income landowners and $18,527 for high-income landowners in Maine to no tax burden in New Hampshire and South Dakota. Calculated state and federal income taxes are based on 2004 tax regulations and rates. After-tax land expectation values calculated for a forest landowner in the Northern Lower Peninsula of Michigan illustrate the importance of tax planning on returns to a timber investment. The results support the need for adequate tax accounting.

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