Chapter1_1of3 - Welcome to Introduction to Taxation...

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Unformatted text preview: Welcome to Introduction to Taxation Instructor: Part 1 of 3 Taxes Taxes… I hate paying taxes! Income taxes Property taxes Sales taxes Excise taxes Estate taxes Medicare taxes Social Security taxes So many taxes! Gas taxes Gift taxes State taxes Local taxes Inheritance taxes Sin taxes—cigarettes, liquor, beer, gambling I earned $300 but I got $200. I don’t get it. Taxes are what we pay for a civilized society Oliver Wendell Holmes Jr. Supreme Court Justice March 8, 1841 – March 6, 1935 Inscribed on the front of the IRS building We are a nation born from tax protests! Coffee and Taxes??? Remember the Boston Tea Party? Why should you know about taxes? They impact everything we do! CHILDREN Wall Street Journal August 1993 Sorry, Mom: A mother to be called New York’s tax department to ask if she could amend her tax return. The doctor had just told her that she was expecting twins. She had claimed only one of them as a dependent. But you can’t even claim one, she was told. Dependents must be born to qualify! Graceland Course Tuition ???? Any tax breaks for tuition? In this world nothing can be said to be certain, except death and taxes Taxes Weather 34 Weather 35 LA to SF Tail that wags dog 37 Course Objective A515 Federal Taxation Fall 2005 Over
and
over
again
courts
have
said
 that
there
is
nothing
sinister
in
so
 arranging
one’s
affairs
so
as
to
keep
 taxes
as
low
as
possible.
Everybody
 does
so,
rich
or
poor,
and
all
do
right,
 for
nobody
owes
any
public
duty
to
pay 
 more
than
the
law
demands:
taxes
are
 enforced
exactions,
not
voluntary
 contributions.
To
demand
more
in
the
 name
of
morals
is
pure
cant.
 Justice Learned Hand 1872-1961 Days
Until
Taxes
are
Due:
19 
 Anyone
may
so
arrange
his
affairs
that
his
taxes
shall
be
as
low
as
 possible;
he
is
not
bound
to
choose
that
pattern
which
will
best
pay
 the
Treasury;
there
is
not
even
a
patriotic
duty
to
increase
one’s
taxes
 
 
 --
Judge
Learned
Hand
 We
couldn’t
have
said
it
better,
your
Honor.
 And,
where
Judge
Hand’s
age-old
wisdom
leaves
off,
KPMG
picks
up.
 For
100
years
now
we’ve
been
helping
taxpayers
“arrange
their
 affairs”
in
the
way
that
best
suits
their
financial
planning
needs.
With
 another
tax
season
upon
us,
we
offer
this
special
web
site
to
help
you
 prepare
your
financial
affairs
for
the
1998
tax
year.
 Taxing Facts •  The Internal Revenue Code—the tax law has about 1,395,000 words, a Congressional report says. And as of June 2000, the Treasury had issued almost 20,000 pages of regulations containing more than eight million words. Growth in Number of Words in the Internal Revenue Code Tax Foundation: 2005 SEC. 509. PRIVATE FOUNDATION DEFINED. (a) GENERAL RULE.— For purposes of this title, the term "private foundation" means a domestic or foreign organization described in section 501(c)(3) other than— (1) an organization described in section 170(b)(1)(A) (other than in clauses (vii) and (viii)); (2) an organization which… (3) an organization which— (A)  is organized, and at all times thereafter is operated, exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more specified organizations described in paragraph (1) or (2), (B)  is operated, supervised, or controlled by or in connection with one or more organizations, described in paragraph (1) or (2), and (C)  is not controlled directly or indirectly by one or more disqualified persons (as defined in section 4946 ) other than foundation managers and other than one or more organizations described in paragraph (1) or (2); and(4) an organization which is organized nd operated exclusively for testing for public safety. The tax law can be complex For purposes of paragraph (3), an organization described in paragraph (2) shall be deemed to include an organization described in section 501(c)(4), (5), or (6) which would be described in paragraph (2) if it were an organization described in section 501(c)(3) 2002 Syllabus A515 Federal Taxation Fall 2005 ...
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This note was uploaded on 03/23/2010 for the course ACCT 402 taught by Professor Toleno during the Spring '10 term at Providence College.

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