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Tax Audits
Tax audit refers to the examination and verification of returns and other relevant tax documents submitted by a legal entity or an individual to the state’s tax agency. The audit is usually conducted by a certified public accountant.
1,102 Questions
Is a shareholder responsible for payroll tax debt?
=It all comes down to the one-on-one interviews by all parties involved and how the IRS agent will evaluate who will be held responsible. Your interview will be twisted around on you. If you willfully did not pay the taxes and had the ability to, yes you may be responsible. If you were the responsible one to pay payroll and knowingly avoided to pay your payroll taxes, yes you may be held responsible. If you're on the signature card at the bank but say you never even wrote a check, my situation, you are responsible. I personally was not aware of our company missing payments as I was not involved in those dealing and only work limited hours dealing with giving clients updates and never doing payroll but these loser are coming after me too. The idiots we have had to deal with in the Twin Cities are just horrible and our government better take a hard look at this issue because it is about to become a major one! I am making it my mission to be the advocate to all those out there who are innocently shot between the eyes by these scums of the earth! This is an absolute attack on innocent people with no remorse and the agents who knowingly do this should also have to suffer the consequences of their actions!!!=
What type of tax is income tax?
****NOTE**** Judy Olmsted has plagiarized my post.
****END of NOTE****
Income Tax is an INDIRECT TAX. The Supreme Court has made this point very clear in 1916 only 3 years after the 16th Amendment, commonly referred to as the Income Tax amendment, was ratified. The 16th Amendment confirms that the Income Tax can ONLY be imposed under the category of Indirect. The 16th amendment is a moot point in the scheme of things anyway. All it did was to confirm Congress' taxing power by the US Supreme court concerning income tax as an indirect tax and nothing else!
Income Tax is an INDIRECT tax by it's very nature. It is NOT a direct tax as others here have suggested. The 2 US Supreme Court Cases in 1916 settled that this very question are as follows:
BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)
AND
STANTON v. BALTIC MINING CO, 240 U.S. 103 (1916)
The Court said specifically in the Stanton case the following:
" it manifestly disregards the fact that by the previous ruling it was settled that the provisions of the 16th Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged, " So here we can see, beyond ANY shadow of a doubt, that the court confirms that Congress can lay an income tax but ONLY as an indirect tax.
And as a side note, most tax professionals do NOT read the law to determine who is liable for the tax. Most tax professionals read IRS publications and just ASSUME anyone who makes money now owes an Income Tax. The most important aspects are glossed over like whom is subject to the tax, whom is liable for the tax (yes, it's different than whom the subject is), under what circumstances domestic US source income becomes taxable. So the who what when where and why are for the most part discarded as important by practically anyone whom works in the tax industry.
IRS Publications tell the story a bit different than a tax "professional" would. IRS Publications are sort of like "New Letters" put out by the IRS to the tax industry, including mostly ALL CPA's and Tax "Professionals". The IRS has a manual available on their website which any one can go read. Here's what THEIR OWN manual says about their own publications:
4.10.7.2.8 (01-01-2006)
IRS Publications
"IRS Publications explain the law in plain language for taxpayers and their advisors. They typically highlight changes in the law, provide examples illustrating Service positions, and include worksheets. Publications are nonbinding on the Service and do not necessarily cover all positions for a given issue. While a good source of general information, publications should not be cited to sustain a position."
The IRS has plainly stated in their OWN manual that Publications are NOT to be cited to sustain positions about the LAW even though that is what all tax professionals do anyway. This is because IRS publications and pamphlets are NOT the law. The IRS has already vindicated themselves from people who WRONGLY use publications like law.
So hopefully this has gotten you on the proper path to actually understanding what the "Income Tax" actually is and especially what it ISN'T! And, this is just the tip of the Iceberg of the mis-understandings the general public have about Income Tax law. So next time somebody says it's an direct tax, you can confidently re-correct them and confirm that it is, beyond a shadow of a doubt, an indirect tax.
Disadvantages of financial audits?
Financial statements give an idea about the financial position of the company, however, there are some limitations of the financial statements. The first limitation is that a financial statement ignores the productivity and the skills of the employees in an organization. Management Decision Analysis Report gives an idea about it but financial statements are unable to evaluate the skills which a company has. Secondly, balance sheet does not give timely and relevant information because it is based on historical costs and it does not give a fair idea about the current position of the company. There are different accounting measurement systems therefore, use of different techniques by different companies can make the comparisons of financial statements difficult. Moreover, income statement is considered a fiction because cash is king and income statement ignores this fact.
Who is responsible for cpa's error on your tax return?
YOU are always responsible for the tax that is due on your return. However, industry standard normally is, if there was an actual error on the return, not just a possible position taken to help you that didn't hold up under IRS scruitiny, that any penalty (not interest) will be paid by the preparer. That way you only pay what you should have any the interest equals what you gained by keeping the extra money.
How many years in a row can the IRS audit you if they found nothing wrong in previous audit's?
They can audit you as many times as they want, and even more than once in a year. No matter how many years they looked at an issue and approved it, that does not mean it is acceptable handling and they can challenge it at any subsequent year.
IS the tax on capital gains considered a voluntary tax?
Yes. Virtually all income taxes in the US are voluntary. That means the person responsible for them voluntarilarly, on his own, reports and pays them. Not that he has a choice about paying them or not, but how it is done. All the alternatives, which were used when that term was coined, were taxes basically imposed arbitrarilarly and taken by force. The Kings men came and said -"we will take 5 bushels of vegetable, 1 cow for the Kings table..and a barrel of that wine for our collecting it", and essentially came back whenever they wanted. Or you were told to bring an item of value to the rulers...again whenever they wanted and if you didn't you were killed and it was taken anyway. The King/Ruler/Emperor really owned everything, and any business was allowed only under his approval/gift and partnership. By the way, this all has been discussed many times in Courts...so many times, with so many more literate and researched answers...that now the Courts and Law has made it that trying to present an argument that "voluntary" means you have a choice to pay or not, is considered frivalous and tax protester and immeadiately dismissed and a triple the tax penalty.
What are the rights of the persons being audited?
Basically none if you are talking about a government audit.
Any attempt to conceal information or mislead the auditors is considered illegal. Government audits are normally done under performed within the legal system and structure of the country in which you live; generally they give auditors the right to access all relevant financial information (not necessarily personal information) that pertain to the audit.
What are the right that enable auditors to carry out their duties?
general accepted accounting principles (GAAP)
Can i get Sums and solutions of accounts?
A Ltd. issued 1000,6% debentures of Rs 100 each payable as 10% on application,20% on allotment and balance on 1st and final call.journalise the transactions in the books of A Ltd.
What does the IRS code 1301 mean?
According to the Internal Revenue Manual, IRS reference code 1301 has a status description of "Fact of Filing Electronic return received more than 3 weeks ago; no other information." The IRS agent is referred to Return Found/Not Processed Section in Part 21-Customer Account Services of the Manual for guidance.
Code 1301 applies to a number of situations. One such situation is that the Agent learns from the taxpayer that incorrect direct deposit numbers were given on the return.
The Internal Revenue Manual is available online at the IRS website. The reference codes are available under the Refund Research Section at 21.4.1-4 Internet Refund Fact of Filing Reference Codes.
How long does a tax audit take?
Depends on what developes and how quickly you agree to suggested resolution
List several differences btwn accounting and auditing?
simply stated; accounting is recording, whereas, auditing is verifying the recorded information
If your income is less than 5000 a year how much will you pay in taxes?
For 2009, if you're Single with no dependents and income of less than $5,000, then you're not required to file. You'd be required to file if your income were at least $9,350. If income tax were withheld from you earnings in 2009, then you should file for a refund of all federal income tax withheld. Your income is zeroed out by your standard deduction of $5,700 plus your personal exemption of $3,650.
What types of taxes are included in the Payroll Taxes Expense account of an employer?
It depends entirely on the accounting policies of the company. Generally there are many accounts.
I assume you are asking that if you take a cash loan, withdrawal or surrender your policy for the cash value, will the money you receive be taxable? On a loan no, never. On a Surrender or withdrwal, only the cash that exceeds the amount of premiums you paid. Before surrendering a policy, check and see if you can get an offer from a life settlement. It usually is worth more than the cash value.
What is the the meaning of unrealised loss or unrealised profit in accounting terms?
UNREALIZED INCOME (paper profit) is profit which has been made but not yet realized or collected through a transaction, such as a stock which has risen in value but is still being held. also called unrealized gain or unrealized profit or paper gain or book profit. UNREALIZED LOSS is a term that commonly refers to the write-down of an investment portfolio resulting from applying the lower of cost or market value on an aggregate basis. On a short-term portfolio, the unrealized loss is shown on the income statement. On a long-term portfolio, the unrealized loss is presented as a separate item in the stockholder's equity section of the balance sheet. Capzper
