Tax250 Which type of tax policy goal does this action represent?

 

 

Part I (Multiple Choice)

Questions 1 – 5 are based on the following factual hypothetical:  The parliament of Fantasia has decided it needs to enact an income tax.  The tax is a simple one: 10% of all wage income with an exemption of the first $10,000 in wage income.  In year 1, the tax regime brings in a lot of money but families claim it is hitting them too hard.

  1. For year 2, Fantasia decides to allow an additional exemption in the amount of $5,000 for each child “born to the taxpayer” starting in year 2.  The additional exemption is not available for already-existing children.  This is supposed to encourage people to have new children.  Which type of tax policy goal does this action represent?
    1. Socio-economic engineering
    2. Horizontal Equity
    3. Revenue Raising
    4. Administrability / Efficiency
    5. Progressive Principle

 

  1. For year 3, the parliament of Fantasia decides that people are listing fake children to get the additional exemptions.  (Weirdly, the Ministry of Taxation shows the birth of 1 million new children in year 2 but the Ministry of Health only shows the birth of 250,000 infants in the nation’s hospitals).  So, Fantasia decides that starting in year 3, taxpayer must list the Social Identity Number (SIN) for each child that is being claimed for the additional exemptions.  Which type of tax policy goal does this action represent?
    1. Socio-economic engineering
    2. Horizontal Equity
    3. Revenue Raising
    4. Administrability / Efficiency
    5. Progressive Principle
  2. In year 4, Fantasia decides that it needs additional funds to purchase advanced military technology, so it imposes a 10% tax on the net proceeds of dealings in property (e.g. stocks, bonds, real estate, etc.).  This proves politically popular because it primarily affects a small group of citizens.  Which type of tax policy goal does this action represent?
    1. Socio-economic engineering
    2. Horizontal Equity
    3. Revenue Raising
    4. Administrability / Efficiency
    5. Progressive Principle
  3. In year 5, taxpayers with adopted children protest the fact that the additional exemptions are only for “children born to the taxpayer”, so Fantasia passes a law making the exemption available to “any child in the custody of the taxpayer who was born in year 2 or thereafter”.  Which type of tax policy goal does this action represent?
    1. Socio-economic engineering
    2. Horizontal Equity
    3. Revenue Raising
    4. Administrability / Efficiency
    5. Progressive Principle
  4. In year 6, the leftist party is elected to Fantasia’s parliament and they pass a  new revenue law imposing a 20% on wage income in excess of $50,000.  Which type of tax policy goal does this action represent?
    1. Socio-economic engineering
    2. Horizontal Equity
    3. Revenue Raising
    4. Administrability / Efficiency
    5. Progressive Principle
  5. Generally, what represents the greatest reduction in tax liability?
    1. An above-the-line deduction worth $100
    2. A below-the line deduction worth $100
    3. A credit worth $100
  6. All of the following generally have the “force of law” except:
    1. The Constitution
    2. Title 26 of the United States Code
    3. Treasury Regulations
    4. Revenue Ruling
  7. What Code section mandates the payment of an income tax by human beings?
    1. I.R.C. § 1
    2. I.R.C. § 11
    3. I.R.C. § 61
    4. I.R.C. § 63

 

  1. Marc visits his great-grandfather in France. Marc helps his great-grandfather around the house and is given a check for $1,000 as compensation.  Marc returns home to New York and promptly deposits the check at his bank on December 15, 2016.  However, the check takes three weeks to clear (because it is drawn on a French bank) and the funds are not available in Marc’s account until January 2, 2017.  When is the income includible?
    1. It’s not income as it is a gift.
    2. 2016 because that is when he received the money.
    3. 2016 because of the constructive receipt doctrine
    4. 2017 because that is when he gained access to the money.
    5. 2017 because of the constructive receipt doctrine.
  2. Which of the following statements most accurately describes the tax treatment of dividends paid pursuant to a life insurance policy?
  1. They are always taxed as ordinary dividends unless they are qualified dividends.
  2. They are always taxed as qualified dividends.
  3. They are always excluded from gross income unless they are in excess of the premiums paid for the policy.
  4. For post-TCJA tax years, dividends paid on life insurance policies are no longer excluded from income unless they are qualified dividends.
  1. The dissent in Commissioner v. Kowalski, 98 S.Ct. 315 (1977) is referencing what tax policy goal when it talks about the “ironical difference in tax treatment [the majority] now accords to the paramilitary New Jersey state trooper structure and the federal military.”
    1. Horizontal Equity
    2. Progressive Principle
    3. Revenue Raising
    4. Administrability / Efficiency
  2. All of the following are examples of the system of information reporting which underlie our federal tax system, except:
    1. Form 1040
    2. Form W-2
    3. Form 1099-INT
    4. Form 1099-DIV
  3. All of the following facts were relied upon by the majority opinion in Kowalski to show the taxpayer was not provided a “meal” within the meaning of I.R.C. § 199 except:
    1. The meal allowance was in the form of cash.
    2. The troopers kept the cash if they ate at home.
    3. The troopers had to have a mid-shift meal.
    4. The recruitment brochure described the meal allowance as additional compensation.
  4. Which of the following additional facts, if true, would most undermine the rationale of the court’s decision in Sibla v. Commissioner, 611 F.2d 1260 (1980):
    1. The firemen really enjoyed their cooking.
    2. The firemen could opt-out of the cooking arrangement (by bringing food from home) but their compensation would decrease accordingly.
    3. The firemen’s’ salaries were decreased slightly but they were provided vouchers with which to buy food from the supermarket to use in the cooking arrangement.
    4. The firemen could opt-out of the cooking arrangement and instead receive a voucher to use at any restaurant within 5 miles of the station house.  If they didn’t use the voucher, they could not redeem it for cash.
    5. The firemen could opt-out of the cooking arrangement and instead receive a voucher to use at any restaurant within 5 miles of the station house.  If they didn’t use the voucher, they could redeem it for half of its face value.
  5. According to the Zarin v. Commissioner, what was the top tax rate in effect in 1981 and what is the top tax rate currently in effect for 2017?
    1. 70% in 1981; 39.6% in 2017
    2. 39.6% in 1981; 39.6% in 2017
    3. 35% in 1981; 35% in 2017
    4. 35% in 1981; 39.6% in 2017.
  6. Jasper lives in Alaska.  Jasper has a cousin, Amelia.  Amelia has a 24 year old daughter named Charlotte.  Starting on January 1, 2019, Charlotte moves into Jasper’s home and stays until January 1, 2020.  During this time, Charlotte is completing an unpaid internship conducting research into the biodiversity of Alaska.  For the 2019 tax year she had no other income.  Everyone is a U.S. citizen. Which of the following statement is true?
    1. Amelia may claim Charlotte as a dependent because she is a qualifying child.
    2. Jasper may claim Charlotte as a dependent because she is a qualifying child.
    3. Jasper may claim Charlotte as a dependent as she is a qualifying relative under the relationship test.
    4. Jasper may claim Charlotte as a dependent because she is a qualifying relative under the household test.
  1. Consider the following facts for the 2017 (pre-TCJA) tax year: After graduating, Ahmed found a job as a nurse.  His best friend, Andrew, couldn’t find a job so he lived with Ahmed for the entire year, sleeping on his couch.  Ahmed also gave him money for food and clothing.  How many exemptions may Ahmed claim and what is his best filing status?
    1. 1 exemption; single
    2. 1 exemption; head of household
    3. 2 exemptions; single
    4. 2 exemptions; head of household

Questions 18 through 20 are based on the following fact pattern:  In the late 1970’s as a young woman, Aisha was strolling in the market in Old Jerusalem.  At one of the stalls, she found two identical vintage art deco diamond rings.  They cost $50,000 each.  Enchanted, she arranged for a loan in the amount of $100,000 from Banque Libanon to purchase the rings.  Forty years later, in 2000, she gives one of the rings to her daughter, Fatima.  Fatima has the ring appraised for $75,000.  She donates the ring to the Metropolitan Museum of Art.  In 2005, upon Aisha’s death, the other ring is inherited by Zara, the youngest daughter.  An appraisal reveals that ring is now worth $250,000.  In 2006, Banque Libanon contacts the Aisha’s estate and informs the executor that Aisha never made any payments on the loan but the debt is being forgiven.

  1.  What is Fatima’s basis in her ring when she gets it as a gift?
    1. $0
    2. $50,000
    3. $75,000
    4. $100,000
    5. $250,000
    6. It cannot be determined.
  2. What is Zara’s basis in her ring when she inherits it?
    1. $0
    2. $50,000
    3. $100,000
    4. $250,000
    5. It cannot be determined.
  3. How much discharge of indebtedness income does Zara have?
    1. None
    2. $50,000

 

 

Part II (Short Answer)

For your response to each question, please write in full sentences and use no more than 150 words.

Rood v. Commissioner

 

  1. What court is this?
  2. What’s the year of the decision? What’s the tax year at issue?
  3. What is the Commissioner’s proposed adjustment?
  4. What conclusion does the court reach?
  5. Would it have made a difference if the debt was (possibly not) enforceable under state law?

 

 

Bob Jones University v. U.S.

  1. What’s the year of the decision of the court?
  2. What’s the issue?
  3. Do you agree with the court that “an educational institution engaging in *599 practices affirmatively at odds with this declared position of the whole government cannot be seen as exercising a “beneficial and stabilizing influenc[e] in community life”? See Bob Jones at 598-599. Why or why not?

 

 

Commissioner v. Kowalski 

  1. What’s the court?
  2. What’s the year of the decision?
  3. What does it mean that the Supreme Court granted certiorari?
  4. What’s the tax year and adjustment to income?
  5. What’s the issue?
  6. What’s the rule under I.R.C. section 61?
  7. What’s the rule under I.R.C. section 119?
  8. The Court points to a Senate report which states ““Section 119 applies only to meals or lodging furnished in kind.” See Kowalski at 325.  What does that mean?  What does “in kind” mean?

 

Duberstein v. U.S.

  1. What is the legal issue?
  2. What the court mean when it says on a “case by case basis”? See Duberstein at 290.
  3. How did the Tax Court decide Duberstein?
  4. How did the appellate court decide Duberstein?

 

 

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Papers Owl, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Papers Owl has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At Papers Owl, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.

error: Content is protected !!