Please help Thanks Please read consider and answer the follo

Please help. Thanks

Please read, consider, and answer the following questions: 1. Identify 2 different taxes imposed in the US at each level (Federal, State and Local). 2. What is use tax, who is responsible to pay it, and who it is remitted to? 3. What are the statutory sources of tax law, and who is responsible for the Internal Revenue Service Tax Code? 4. For a tax case to be heard by the US Supreme court, what channels must it go through to get there - starting from the IRS letter proposing a change to a tax return? Reply Quote Email Author

Solution

1. Different taxes imposed in US at federal ,State and Local level are as under:

Federal Level:Payroll Taxes,Estate Tax

State Level :Sales Taxes, License Tax

Local Level :Property Taxes, personal income Tax

2. The use tax is imposed on transactions that would have been subject to the sales tax if both the buyer and the seller were located in the same state. It is usually imposed on the use, storage, or consumption of tangible personal property in the state.

USE TAX is imposed on consumers of tangible personal property that is used, consumed, or stored in this state.

USE TAX is remitted to State Government.

3.Statutory sources for Tax Law are:

(a) Internal Revenue Code

(b) Other non-codified Federal tax statutes

(c) Final and temporary regulations

(d) Judicial decisions on tax matters

(e) Revenue Rulings

(f) Revenue Procedures

(g) Other published IRS positions (e.g., Notices and Announcements)

The Internal Revenue Service (IRS) is responsible for enforcing the internal revenue code.

4. Channels that a case must go through to be heard by US Supreme Court are:

The taxpayer will need to file either a small case request or a formal written protest with the contact person named in the letter.

Further if the tax payer is not satisfied with the IRS letter then he shall file appeal.

The appeal process moves as under:

First to Trial Court, in case of disagreement with the decision on trial court appeal is to be filed with appellate court, and if there is disagreement with appellate court appeal is to be filed with Supreme court.