This method is based on an accounting method that is cash based and the

This method is based on an accounting method that is

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taxpayer and they are liable for it. This method is based on an accounting method that is cash based and the employee that receives this type of method of payment (through a paycheck) must report it as income within that year. For individual tax purposes, why is the distinction between deductions for adjusted gross income and deductions from adjusted gross income important? The distinction between for and from adjusted gross income are important because it’s about above-the-line and below-the-line deductions. Above the line deductions reduce your AGI which in turn will reduce tax liability (moving expense, stock loss, etc.). Below the line deductions will be subtracted from your AGI after the calculation of a return based on your eligibility (ex: medical expense, interest expense, tax, etc.). Discuss the Foreign Account Tax Compliance Act (FATCA). Include an explanation of its requirements and a discussion of the objectives. Foreign Account Tax Compliance or also known as FATCA, is an international standard fulfilled by a cross border tax compliance. FATCA regulate that they annually receive detailed account information from tax authorities as a requirement. An objective of FATCA is to increase transparency, of US persons who might be investing and or earning outcome from non-US sources, for the Internal Revenue Service (IRS).
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  • Spring '15
  • Taxation in the United States, personal exemption, dependency exemptions, Foreign Account Tax, Account Tax Compliance

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