Example Of Research Paper On Tax

1.
The fact that George is an active participant in his companies 401(k) and contributes 5% of his salary his contributions are fully deductible. In the case of Jane, her contributions are not fully deductible for the year 2012. This is mainly because she is going to make her return after the tax day deadline of April 15. According to code §6151 (c), the time and place for making returns is strictly set by law. The code states that if a date has been fixed for returns then it is considered the final date for all returns to be made. In addition, Code § 6161 (b) (3) states that no extensions can be offered due to any deficiencies, therefore, in the case of Jane no extension can be made for her to file her returns on a later date.
2.
The issue in this case is deductions for free meals offered by Jane to her employees. This issue falls under the following revenue procedure Rev. Proc. 2004-29, 2004-1 CB. 918. The revenue procedure under section 162 (a) allows for a deduction of all necessary expenses that were incurred during a financial year and that were necessary to the running of the business. The revenue procedure Rev. Proc. 2004-29, 2004-1 C.B. 918 offers a method of determining the amount of meals and entertainment expenses that are expected from the 50% disallowance allowed by Internal revenue code § 274 (n) (1). Therefore, in this case Jane should appeal the agent’s decision. The free meals that are offered to her employees are critical to the operation of her business since they help in saving time. Therefore, she should appeal her agents decision since Rev. Proc. 2004-29, 2004-1 C.B. 918 allows a deduction of all necessary expenses incurred by a business for normal everyday operations.
3.
- The tax issue in this case is that of exclusions for qualified employee discounts. Two codes and one regulation address the issue of exclusions for the discount that should be included in the income. Based on the Internal Revenue Code §132(c) (1) (A) the discount provided to employees is excluded if the discount does not exceed the product of the employers’ gross profit and the price that is charged to the public for the same good or service. Once the discount received by employees does not exceed this then the discount can be excluded. Internal Revenue Code §132(c)(1)(B) and Regulation Reg. 1.132-3(b) provide that for services provided the employer is excluded for offering employees a 20% discount as compared to the price offered to the public for the same service. In this case Jane needs to examine whether the discount offered to her employees meets the requirements laid out by §132(c)(1)(A), §132(c)(1)(B) and Reg. 1.132-3(b)in order to determine whether her discounts are exempted.
4.
- The issue in this case is deductions for the Jetson’s based on their charitable contributions. This has been addressed under Internal revenue code §170 (a). The code allows for deductions for charitable contributions. However, the charitable deductions must meet a number of requirements in order to be allowed a deduction. In the case of the Jetson’s they value the amount of time spent volunteering to be $1, 750. However, one cannot deduct the value of time or services offered to the charitable organization. The money spent by Jane to buy groceries cannot be deducted since it is donations from the community. However, the family can receive deductions for expenses such as fuel that they use to go to the shelter.