However, in order to bring in more revenue to help cover the costs of the civil war the government had to make necessary reforms and re-establish tax law. It was not until that income tax became a part of the United States Constitution under the 16th Amendment. Since then there have been several tax reform acts implemented to help reduce the tax burden on individuals and reduce the tax rate.
However, the tax law and general purpose of income taxes is something in which the general society gives little thought. In addition, few tax preparers are aware that differences exist between the Generally Accepted Accounting Principles GAAP and tax accounting, not to mention the ramifications of avoiding or evading to proper complete the reporting of income taxes.
This paper will discuss the objectives of modern tax law, the differences between Generally Accepted Accounting Principles GAAP and tax accounting as well as the differences between tax evasion and tax avoidance.
The United States requires that the people and companies with earned income pay to the government a portion of the income earned.
This portion of earned income paid to the government helps to pay for the many expenses needed by our society. The process in which income taxes are paid is simple.
Tax laws are written by the President and Congress of the United States. The IRS is responsible for collecting taxes, issuing refunds, and giving the collected income taxes to the United States Treasury to pay for the various government expenses. Throughout the history of the United States various Acts and Amendments have been enacted to help the government to constitutionally and effectively collect income taxes.
Ina codification of the tax laws went into effect and was known as the Internal Revenue Code of Throughout the years various amendments to the Code have taken place. However, the major structure of tax law has been consistent throughout the years. One area in particular that differs greatly between GAAP and tax accounting is depreciation.
Another difference between GAAP and tax accounting is revenue recognition. Obviously there are additional differences between GAAP and tax accounting.
However, the main difference between the two reporting systems is that based on each of the individual reporting systems the total reportable income for an organization may be different.
Tax Evasion and Tax Avoidance Vernon Jacobs jokingly explains that the difference between tax evasion and tax avoidance is five years in jail.Tax Law and Accounting Every person, organization, company, or non-profit is subject to the income tax.
Income tax refers to those taxes imposed on any money earned during .
Income Tax-I. Law & Practice of Banking.
Methods & Techniques of Cost Accounting. Question Papers May Business Regulations Security Analysis & Portfolio Management.
Creativity and Innovation. Question Papers May Accounting for Business decisions and IFRS. Business Regulation.
Business Taxation-II. Corporate Financial Policy. Tax Law and Accounting ACC/ Income Tax Accounting Joshua Montgomery 5/19/ Tax Law and Accounting Paper There has been some wide controversy within the accounting field between tax law and accounting under the General Accepted Accounting principles, GAAP.
Tax Return Position Paper ACC/ Tax Law Tax laws come from several sources and each source has a particular amount of rein over the laws conducted. Sources, such as the IRC, have a defined amount of say in the laws and the consequences. The way a law is interpreted and applied is also a very large part of tax law.
Notes On Income Tax Laws () Corporate Laws Mock For Winter () Advance Taxation Refresher Course () Vocabulary () ITMAC Past Paper Analysis by Sir Bilal Sulehri () Audit Dear Students / Members.
Welcome to the website!!! This is a small platform to help CA students getting relevant notes and study materials.
CA Final: Previous Years Solved Question Papers Sample / Model Test Papers, Solutions, Suggested Answers advanced auditing and professional ethics, audit, corporate and allied laws, company law, advanced management accounting, accounts, accountancy, information systems control and audit, isca, information technology, it, direct tax laws.