Facts
Charley Long, a truck driver, works for a seafood company in Mobile, Alabama. Charley helps to deliver fresh seafood to customers from Mobile with the company’s truck. Charley leaves Mobile every weekday at 4:00pm and arrives his last stop at 12:00 midnight. It’s up to Charley whether to drive straight back or spend a night along the road as Charley’s company doesn’t reimburse any his lodging and food expense. Charley sometimes sleeps in his cab in which is equipped with sleeping facilities, having one meal on his way. Occasionally, Charley stays in motels during which he will eat two meals. The IRS disallowed all his expenses generated in his trips, as IRS believes that his expenses are personal expenses.
Issues
1, Are
…show more content…
There are two requirements for taxpayers to qualifies their expense as travel expenses deduction: First, the purpose of the trip must be connected with a trade or be employment related; Second, the taxpayer must be away from his tax home overnight or for a sufficient duration to require sleep or rest before returning home.
Clearly, in Charley’s case, Charley’s travel expenses are related to Charley’s employment and incurred in pursuit of a trade, as his job is to deliver goods to customers for his company. However, whether Charley travels “ away from home” overnight or whether these travel expenses are necessary needs more consideration. It is critical for Charley to justify the expenses he generated is reasonably incurred in the travels away from home overnight. In this case, Charley’s regular duty involves driving at least 10 hours back and forth as one way from Mobile, his tax home, is around 5 hours. Charley is required to leaves Mobile at 4:00 pm and arrives at his last stop around 12:00 midnight. Literally, Charley needs to “sleep or rest” on his way back, which is less than 24 hours. Relating to the “sleep or rest” rule, IRS and the Supreme Court of the United States have slightly different interpretations in applications. IRS adopted the “sleep or rest rule”, which was first articulated by the by the Court of Appeals for
Taxes are unavoidable because government is needed and government operates on tax revenues. The FairTax is a tax-inclusive progressive national retail sales tax that replaces every other federal tax in America. The new national sales tax would be 23%. Although there have been some questions as to whether the sales tax rate is 23% or 30% and they stem from the meaning of tax-inclusive and tax exclusive. The sales tax in Florida is an example of an exclusive tax because it works of a preset base. If a person buys something for 1$ and pays a .30$ tax on it the sales tax is 30 percent because it is .30$ on the dollar. With the inclusive tax the item would cost 1.30 because the tax is included with the cost. The tax rate of 23% is calculated by
Hoffman, W., Maloney, D., Raabe, W., & Young, J. (2013). Federal Taxation Comprehensive Volume. (36 ed.). Ohio: South-W
The federal and state governments provide the American citizens with all of the basic necessities within our communities and society that is taken for granted. Programs responsible for assistance in times of need, providing a quality standard of living, and maintaining the strongest military in the world costs incomprehensible amounts of money and could never exist without taxes from the American people. Taxes are payments made by individuals and businesses to support the government and its services. The constitution grants that congress “shall have the power to lay and collect taxes, duties, imposts, and excises and to pay the debts and provide for the common defense and general welfare of the people”. Taxes paid by Americans redistribute
Adrian is a salesperson who represents several wholesale companies. On January 2, 2008, she received by mail a commission check from Ace Distributors in the amount of $10,000 that was dated December 31, 2007. Adrian is concerned about the year in which the amount of $10,000 is taxable. Although the check is dated 2007, she contends that it would have been unreasonable for her to drive 100 miles (one way) to the Ace offices on the eve of a holiday to collect her check. Further, Adrian maintains that even if she had made the trip to collect the check, by the time she returned home, the bank would have closed and she could not have deposited the check until January.
People do not enjoy talking about taxes because they are too political, confusing, and depressing. It is no secret that the American tax code is a mess and something many economists describe as too broken to fix. Despite this, politicians have never stopped from trying to “fix” the code, yet they have had very little success. The U.S. Government’s tax code currently comprises “more than 67,000 pages of complexities” (Boortz, Linder, & Woodall 14). The Americans for Fair Taxation (AFFT) was founded in 1995 with one goal: create the simplest and best tax reform plan that would work in the modern market and economy. The AFFT’s best solution was a bill which they promptly called the FairTax.
Read the article Diagnosis Coding and Medical Necessity: Rules and Reimbursement by Janis Cogley located on the AHIMA Body of Knowledge (BOK) at http://www.ahima.org.
Traditionally, nutrition programs were targeted to the indigent and poor populations in developing countries. Many of today's Americans are malnourished also, but they are inundated with unhealthy foods and require a multidisciplinary approach to nutrition education. What would be the three most important points to include in a public nutrition program? Provide current literature to support your answer and include two nutritional education community resources.
Poor work life balance for gen. y – When gen. y can’t work due to their social life outside of work. The gen. y wanted more flexible working hours instead of wanting to only have to work full-time. Francoli gave them the solution to pick between two option which where 1) was to work longer hours four days a week and have the Friday off or 2) employees get to choose when they want to work put to only 8 hours a day.
Facts: Murray Taxpayer was previously employed by a company who was illegally dumping chemicals into a river. Murray had knowledge concerning these illegal activities of his employer and made an ethical decision to report this to the Environmental Protection Agency. Upon inspection, the Environmental Protection Agency determined that Murrays employer was in fact illegally dumping and was appropriately fined for the charges. Murray’s employer reacted to his whistleblowing by firing him and making deliberate efforts to prevent Murray from gaining employment elsewhere. Murray then sued his former employer for damaging
1. All distributions (excluding reasonable salary) to Paula and Mary will be taxed as dividends to them. And the corporation could not deduct this part of distribution.
At present, there are approximately 3,000 different interest groups that are formally recognized by the European Union (Kirchner 2011). These interest groups represent a variety of interests and vary in the amount of influence that they actually have on the policy making process. These groups represent the interest of multiple sectors of both social and economic life within the European Union. Interests range from AGRICULTURE to BIG BUSINESS to HUMANITARIAN AID. In a truly pluralist nature, these groups are competing, either directly or indirectly, with each one another to have an influence in the legislation that is produced by the European Union. It is without a doubt that these interest groups within the European Union play an important
Form a Powerful Coalition - Rossotti used a phased approach to map out his strategic plan for transforming the IRS. He used experts to help him define the organization’s archirEtecture and outline the transformation program. He then used IRS employees to develop a more detailed plan, which included a communication plan to help employees become aware that a major change was occurring to build commitment and buy-in.
1. Assume ParaWorld was eventually ordered to cease and desist due to IP infringement. What category of IP has ParaWorld most likely infringed? Explain the actions that constitute such an infringement. (5 Marks)
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose
As there are many type of tourism, how could businesses capture their potential customers with these types of travel? It is a simple question but it is not easy to answer. Regarding to the purposes of traveller to visit a destination, there are able to divide a number of travellers or tourists into smaller groups.