Three types of Federal tax regulation: Proposed, Final And Regulation. The four
ID: 1136664 • Letter: T
Question
Three types of Federal tax regulation: Proposed, Final And Regulation. The four court that hear tax cases: The US Tax court, The US District court, The US tax court small cases division and the US tax court of Federal Claims. Please refer to the added file. I. Answer the following questions in depth. At least one half page per question. 1. Describe the legislative process for drafting federal tax law 2. Describe the three types of federal tax Regulations . Describe revenue rulings 4. Describe letter rulings 5. Describe the four courts that hear tax cases. I Write a one page summary of the case "Storey Versus Commissioner". The case can be found in the Course Materials Section.Explanation / Answer
(A) 1) DESCRIBE THE LEGISLATIVE PROCESS FOR DRAFTING FEDERAL TAX LAW
Firstly, Tax legislation is a process by which a proposed tax rule may become low in the United States. It follows specific steps. The legislation, like all federal laws requires the consent of both houses of Congress -the senate and also the house of representatives encluding the presidential approval aswel.
The legislative process for drafting federal tax low are as follows
1) The tax bill originates in the house of the representatives which is referred to the ways and means committee, ones the committee members reach an agreement regarding the legislation, a proposed tax law is then written
2) The tax bill goes to the full house from debate, amendment, encluding the approval aswel
3) The tax bill is pass to the senate where it will be reviewed and the finance committee may rewrite the proposal before it is presented to the full senate.
4) Following the senate approval, the tax bill is sent to a joint committee of the house and the senate members who work to create compromise vision
5) The compromise visit is then send to the house of the senate for the approval process
6) Ones the Congress pass the bill it is further send to the president who will further sign it into law. If the president tends to signs the bill, now the responsible agencies like Treasury department and internal revenue service must take action to carry out the bill.
7) Now , in the event the president will verify the tax bill, Congress can obviously make the changes that the president desires or override the veto with a twi-thirds vote of each house, if successful, than the tax bill automatically becomes the low even without the signature of the president.
2) DESCRIBE THE THREE TYPES OF FEDERAL TAX REGULATIONS
1) Proportional tax = A proportional tax is a tax imposed where the person of tax rate is fixed as the amount subjected to taxation is dynamic ( it keeps changing)
Well, the proportional tax applies the same tax ate across low, middle, and hugh-income tax payers.
The progressive tax system., Adjust tax rates by incoms. The marginal rate taxing system, such as the tax of a flat, has a constant rate for both business and individual taxpayers.
2)Progressive tax= Progressive tax is a tax in which the rate of tax increases as the taxable base rate amount increases. Progressive usually refers to the way the tax rate progesses from low to high, with a result that a tax payers average tax rate is obviously less than the persons marginal tax rate. Progressive taxation are often suggested as a way to migrate the societal ills with are associated with the higher income inequality but economics discrete on the tax policy's economic as well as long term effects. Progressive tax is also associated with with happiness, the subjective well-being being of nations and citizen satisfaction with public goods like education and transportation.
3) Regressive tax= A regressive tax is a tax imposed in such a manner that tax rate decreases as the amount subjected to taxation increases. The word regressive usually describes the distribution effect on income or expenditure, usually refering to the way in which the rate progression high to low, so that the Average tax rate exceeds the rate of marginal tax. The regressive of a particular tax can even be the factor the propensity o the tax payers to engage in tax related activity to their resources .
3) DESCRIBE REVENUE RULINGS?
They are public admisnistrative rulings by the internal rrevenuesrrevenueseranrrevenuesrrevenueserants IRS in the united states department of the treasury of the united states federal government thathat apply the law to particular factual situations. A revenue ruling can be relied upon its president by all its tax payers .
Revenue ruling is an offical interpretation by the internal revenue system that is been published in the internal revenue bulliten. Revenue rulings are issued only by the national office and are published for information and guidance of tax papayers. IntInternal reverence service officofficals and others concerned. Revenue rulings are publish to perform correct and uniform application of ththe tax law by the internal revenue service employees, and to assist tax payers in attaining the maximum volunter compliances by forming service personality . The public of national office interpretations of tethe internal revenue laws regulations and statements of services, procedures affecting the rightes and futies of tax payers .
4) DESCRIBE LETTER RULING
Private letter ruling in united states are written DECESION by the internal revenue service IRS which is in response to the tax payers request for guidance. A letter ruling or private letter ruling
Is a written statement issued to a tax payer by an associate chief council office and applies tax laws to its specific set affects. A private ruling binds both the IRS and the requesting tax payer in the event. The matter is further disputed by only those parties thus a private ruling must not be sites or relied upon its president by other tax payers.
5) DESCRIBE FOUR COURTS THAT HEAR TAX CASES
A) US District court
Us District court is the general trial court's of the united statesfederal court system. Here both the Criminal as well as civil cases are filled in the district court which is a court of equality, law as well as admiralty
B) Tax court
Tax court is a federal trial court of record which is been established by the congress under the article 1 of the us Constitution section 8 of which provides that the Congress has the power to constitute tribunals which is inferior to the supreme court
C) Us court of federal claims
This us court of federal claims is a united state federal court which hears all the monetary claims which was founded in the year 1855
And it is also a revised version of among one of the oldest federal courts in the country
D)Bankruptcy court
Bankruptcy court is known as the legal status of a person or other entity where they can not repay depts to the creditors in a more jurisdiction it is imposed by a court order which is often initiated by the deptor.
( B) WRITE ONE PAGE SUMMARYOF THE CASE STORY VERSUS COMMISSIONER
M really sorry I cudnt complete this due to time constraint. I would kindly request you to post this question again so that I can solve it for you. I know the answer.
Thank you very much :)
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