Simplified Procedures for Computing the Federal Income Tax

1969 ◽  
Vol 62 (1) ◽  
pp. 5-11
Author(s):  
Robert L. Morton
Keyword(s):  
Lower Limit ◽  
Income Tax ◽  
Internal Revenue Service ◽  
Taxable Income ◽  
Internal Revenue ◽  
Federal Income Tax ◽  
The Difference ◽  
Simplified Procedures

The procedure outlined by the Internal Revenue, service (IRS) for computing the amount of tax due, after the taxable income has been determined (line lld, Form 1040), requires five computational steps: (1) subtract the lower limit or the top bracket from the taxable income, (2) multiply the difference by the applicable rate, (3) add the product to a stated amount, (4) multiply the amount obtained in Step 3 by .075, and (5) add the product to the amount obtained in Step 3.

Contingent Legal Fees on Settlements and Awards and the Calculation of Gross Income by Individuals for United States Federal Income Tax Purposes

2004 ◽  
Vol 2 (1) ◽  
pp. 1-12
Author(s):  
Michael P. Coyne ◽  
Richard Mason ◽  
John R. Mills
Keyword(s):  
Income Tax ◽  
Internal Revenue Service ◽  
Current Position ◽  
Significant Difference ◽  
The Supreme Court ◽  
Federal Income Tax ◽  
Gross Income ◽  
Legal Fees ◽  
Circuit Courts ◽  
Congressional Action

Lawsuits involving contingent legal fees are reasonably common. This paper focuses on the appropriateness of the inclusion in plaintiff's gross income for individual federal tax purposes of the portion of settlements going to attorneys for contingent legal fees. We present an example of the significant difference in taxes payable by a plaintiff under the two competing tax treatments. We also recap the current position of the various Circuit Courts on the issue using the opposing views of the Sixth to the Second and Seventh Circuits to frame a discussion of the issue and then discuss the treatment of securities classaction settlement proceeds that are apparently treated differently for tax purposes. The Supreme Court has recently granted certiorari in two cases and will be addressing the inclusion of contingent legal fees in gross income. We advocate that although taking the broader Sixth Circuit approach of excluding contingent attorney's fees on a joint endeavor theory would lead to more equitable results for plaintiffs, it would not necessarily be prudent judicial action and that the appropriate remedy to the situation may best be Congressional action, as the Internal Revenue Service has consistently favored inclusion.

When Religion Is Paid to Be Silent

Worldview ◽  
1973 ◽  
Vol 16 (4) ◽  
pp. 32-37
Author(s):  
Dean M. Kelley
Keyword(s):  
Income Tax ◽  
Symphony Orchestras ◽  
Circuit Court ◽  
Internal Revenue ◽  
Court Of Appeals ◽  
Public Charities ◽  
Federal Income Tax

On December 18, 1972, the Tenth U.S. Circuit Court of Appeals in Denver handed down a decision which may be momentous not only for churches but for all organizations (hospitals, colleges, symphony orchestras, museums and other "public charities") exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. The court took away a religious organization's tax exemption because it had engaged injpolitical activity, yet the decision has gone almost unnoticed in the great metropolitan newspapers of the East.

Transparency, Compliance, and Filing Burden—Principles for the Revised Form 990

2009 ◽  
Vol 7 (1) ◽  
pp. 133-151 ◽  
Author(s):  
Pamela C. Smith ◽  
Donna J. Shaver
Keyword(s):  
Income Tax ◽  
Historical Context ◽  
Tax Compliance ◽  
Internal Revenue Service ◽  
Internal Revenue ◽  
Tax Exempt ◽  
Guiding Principles ◽  
Legislative Changes ◽  
Transparency And Accountability

ABSTRACT: The Internal Revenue Service (IRS) has significantly revised Form 990, “Return of Organization Exempt from Income Tax.” The informational return has not been substantively modified in 30 years. The IRS states the redesign of the return was based on three guiding principles: (1) enhancing transparency, (2) promoting tax compliance, and (3) minimizing the burden on the filing organization. This paper outlines the historical context of legislative changes concerning transparency and accountability within the tax exempt sector. It also outlines the major revisions to Form 990 and argues that they meet the underlying goals established by the IRS to enhance the overall accountability within the sector.

Oleo, Whiskey, and Cigars: How William Henry Osborn Implemented the 1913 Federal Income Tax

2019 ◽  
Vol 46 (2) ◽  
pp. 57-65
Author(s):  
Mary M. Stolberg
Keyword(s):  
Cost Saving ◽  
Income Tax ◽  
The Political ◽  
Criminal Cases ◽  
Internal Revenue ◽  
Basic Framework ◽  
Federal Income Tax ◽  
Legal Battle

ABSTRACT Many scholars have chronicled the long political and legal battle that led to ratification of the 16th Amendment on February 25, 1913. However, none have described how the Bureau of Internal Revenue implemented the tax in only six months on a shoestring budget. William H. Osborn, the commissioner who oversaw the effort, left a diary of his experiences, which sheds light on the political, budgetary, and bureaucratic challenges he faced. While most internal revenue commissioners work in relative obscurity, Osborn won public acclaim by pursuing long-neglected evasions with headline grabbing criminal cases, pushing against patronage to hire qualified agents, and instituting cost-saving efficiencies. He melded political acumen, administrative genius, and a talent for inspiring his employees to build the basic framework for modern federal income tax collections. His experiences highlight the important, but often overlooked, role played by skilled bureaucrats.

scholarly journals Criminal Enforcement and the IRS

1967 ◽  
Vol 13 (2) ◽  
pp. 352-355
Author(s):  
Robert L. Spatz
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
White Collar ◽  
Internal Revenue Service ◽  
Tax Burden ◽  
Fair Share ◽  
Tax Enforcement ◽  
Internal Revenue ◽  
Criminal Sanctions

This nation is run, essentially, by income tax collections, and the Internal Revenue Service painstakingly enforces criminal sanctions on would-be evaders. Tax evasion strikes more directly at the sovereignty, and less directly at individual citizens, than other white-collar crimes. The raison d' etre for vigorous crimi nal tax enforcement is to deter tax evasion and to assure the taxpaying public that each individual taxpayer is held account able for his fair share of the tax burden.

scholarly journals Is Federal Tax-Exemption Policy for Nonprofit Hospitals Moving to a Clearer Quid pro Quo Basis?

2012 ◽  
Vol 3 (1) ◽  
Author(s):  
Beaufort B. Longest
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Internal Revenue Service ◽  
Tax Policies ◽  
Nonprofit Hospitals ◽  
Internal Revenue ◽  
Exemption Policy ◽  
Income Tax Policy ◽  
Modern Era

The question of whether federal tax-exemption policy for nonprofit hospitals is moving to a clearer and more robust quid pro quo basis is examined. The question is important because heretofore the basis for federal exemption has been vague and fluid. Utilizing a quid pro quo rationale for federal tax-exemption of nonprofit hospitals as a framework, the chronological record of policy in this area is organized into three major periods: (1) A Simple Quid pro Quo: Early Federal Tax Policies for Nonprofit Hospitals; (2) A Changing Quid pro Quo: The Modern Era of Federal Tax Policy for Nonprofit Hospitals; and (3) An Emergent, Clearer Quid pro Quo: Recent Congressional Activism on Exemption Policy, including relevant provisions of the ACA. The article concludes with discussion of continuing vagueness and ambiguity in federal corporate income tax policy for nonprofit hospitals. The importance of enhanced clarity and specificity in the information upon which policy in this area is based is discussed, as are actions needed by Congress and the Internal Revenue Service to accomplish improved exemption policy.

scholarly journals Social Security Benefits Taxation: Issues And Present Status

2012 ◽  
Vol 10 (12) ◽  
pp. 659
Author(s):  
Ralph B. Fritzsch ◽  
Neal R. VanZante ◽  
Catherine Gaharan
Keyword(s):  
Social Security ◽  
Income Tax ◽  
Tax Law ◽  
Font Size ◽  
Tax Rate ◽  
Taxable Income ◽  
Current State ◽  
Federal Income Tax ◽  
Gross Income ◽  
Social Security Benefits

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none;" class="MsoBodyText"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">Taxation of Social Security benefits was introduced in 1983 as part of a general restructuring of Social Security.<span style="mso-spacerun: yes;"> </span>As part of the 1993 Omnibus Budget Reconciliation Act, taxation of benefits was revised and expanded.<span style="mso-spacerun: yes;"> </span>Inclusion of social security benefits as part of taxable income is determined by comparing a modification of adjusted gross income and half of social security benefits to threshold amounts established in each tax law. <span style="mso-spacerun: yes;"> </span>Unlike most amounts used to determine tax, the thresholds were not subject to indexation or revision. <span style="mso-spacerun: yes;"> </span>This paper examines the current state of social security taxation in light of personal income changes, social security benefit revisions and federal income tax rate and bracket modifications that have taken place over the fourteen years since the last revision in taxation of benefits.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

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