Taxable fringe benefit a noncash fringe benefit

This preview shows page 17 - 18 out of 18 pages.

Taxable fringe benefit a noncash fringe benefit provided by employ- ers to an employee that is included in taxable income (e.g., auto allowance or group-term life over $50,000). Taxable gifts the amount left after adjusting current gifts for gift splitting, annual exclusions, the marital deduction, and the charitable deduction. Taxable income the tax base for the individual income tax. Taxable temporary differences book–tax differences that will result in taxable amounts in future years when the related deferred tax liability is settled. Technical advice memorandum ruling issued by the IRS national office, requested by an IRS agent, and generally for a completed transaction. Temporary book–tax differences book–tax differences that reverse over time such that, over the long-term, corporations recognize the same amount of income or deductions for the items on their finan- cial statements as they recognize on their tax returns. Temporary regulations regulations issued with a limited life (three years for regulations issued after November 20, 1988). During their life, temporary regulations carry the same authoritative weight as final regulations. Tenancy by the entirety ownership by husband and wife similar to joint tenancy with right of survivorship.
Appendix B B-17 U.S. Tax Court a national court that only hears tax cases and where the judges are tax experts. The U.S. Tax Court is the only court that allows tax cases to be heard before the taxpayer pays the disputed liability and the only court with a small claims division (hearing claims involving disputed liabilities of $50,000 or less). Use tax a tax imposed on the retail price of goods owned, pos- sessed, or consumed within a state that were not purchased within the state. V Valuation allowance the portion of a deferred tax asset for which management determines it is more likely than not that a tax benefit will not be realized on a future tax return. Value-added tax a tax imposed on the producer of goods (and services) on the value of goods (services) added at each stage of production. Value-added taxes are common in Europe. Vertical equity one of the dimensions of equity. Vertical equity is achieved when taxpayers with greater ability to pay tax, pay more tax relative to taxpayers with a lesser ability to pay tax. Vest to become legally entitled to receive a particular benefit without risk of forfeiture; to gain ownership. Vesting date the date on which the taxpayer becomes legally entitled to receive a particular benefit without risk of forfeiture. Vesting period period of employment over which employees earn the right to own and exercise stock options. W Wages a payment by an employer to an employee in exchange for the employee’s services which is typically expressed in hourly, daily, or piecework rate.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture